Declaring Bankruptcy in Western Australia
Helping you reach a financial solution
Bankruptcy is a legal process that provides relief to individuals unable to meet their debt obligations.
Filing for bankruptcy can be a complex and stressful process. Incorrect information could lead to processing delays, increased scrutiny and stricter obligations that you might be unable to meet. For this reason, it is always best to consult a bankruptcy expert when applying.
If you feel you are ‘going bankrupt’, whether it be as a sole trader or an individual, HLB Mann Judd Insolvency WA can assist you through the filing process. We offer clear, professional guidance to help you navigate your application or determine if bankruptcy is the most appropriate solution for your circumstances.
For a cost and obligation free consultation, contact us on 9215 7900 or at info@hlbinsol.com.au.
Understanding Bankruptcy
Bankruptcy is a formal declaration of insolvency, typically lasting three years and one day. During this period, a trustee will be appointed to manage your financial affairs, which may include:
Selling certain assets to repay creditors
Making compulsory income contributions (if your earnings exceed a certain threshold)
Restrictions on obtaining credit
Limitations on overseas travel
Recording your name permanently on the National Personal Insolvency Index
Eligibility Criteria
To be eligible to apply for bankruptcy in Western Australia, you must meet two key criteria:
You are unable to pay your debts when they are due.
You are present in Australia or have a residential or business connection to Australia.
There is no minimum or maximum amount of debt or income required to be eligible for bankruptcy.
Is Bankruptcy Right for You?
Bankruptcy can offer relief from your debts, but it’s not always the most appropriate or necessary solution. It is important to consider the pros and cons of ‘going bankrupt’ and whether an alternative option may allow for greater financial flexibility and fewer long-term consequences.
Your situation might be better managed through pathways such as:
Informal debt negotiation: Working directly with creditors to reduce repayments or extend loan terms.
Debt consolidation: Combining multiple debts into a single loan to simplify repayments and reduce interest.
Debt agreements: Legally binding arrangements for those who meet income and debt thresholds.
Personal Insolvency Agreements (PIA): Structured repayment agreements for individuals with higher levels of debt.
Financial counselling: Accessing confidential, professional advice to assess your options and plan a path forward.
Choosing a bankruptcy alternative may allow you to retain important assets, minimise the impact on your credit rating and continue working without the restrictions that come with bankruptcy.
The Bankruptcy Application Process
Filing for bankruptcy is a serious legal step, requiring careful preparation and a full understanding of your obligations.
It is important to ensure that all information provided during the application is accurate and complete. This will form the basis for managing your bankruptcy and incorrect information could place you in a difficult situation.
The process requires you to submit detailed documentation about your income, assets, debts and financial history. You must also comply with specific requirements of the Bankruptcy Act 1966.
The Act also requires you to complete the following steps to apply for bankruptcy:
Complete the Bankruptcy Form: This is where you detail information about your income, assets, debts and any businesses or trusts you are associated with.
Provide Identification: You must supply at least two forms of identification, such as a driver’s license and Medicare card.
Submit the Application: This can be done online through the Australian Financial Security Authority (AFSA) or via a paper application in the post.
Trustee Appointment: Upon acceptance of your application, a trustee will be appointed to manage your bankruptcy. You can nominate a registered trustee of your choice or have the AFSA appoint one on your behalf.
Working through these steps properly with a trusted advisor helps avoid unnecessary complications during your bankruptcy period.
Speak with a Perth Based Bankruptcy Advisor
Navigating the bankruptcy process can be complex and challenging. At HLB Mann Judd Insolvency WA, we can help you construct your application or recommend a more suitable debt solution.
We provide 3 main services for personal insolvency:
Personalised Advice: We assess each client’s financial situation to determine if bankruptcy is the most suitable option available.
Application Assistance: We guide you through completing and submitting the necessary forms accurately and efficiently.
Trustee Services: As registered trustees, we can manage your bankruptcy, ensuring compliance with legal obligations and working towards a fair outcome for all parties involved. Should you choose to do so, you are able to nominate us as your preferred trustee.
If you’re considering declaring bankruptcy and need financial advice, contact HLB Mann Judd Insolvency WA on 9215 7900 or at info@hlbinsol.com.au for a confidential, obligation-free consultation.
