Declaring Bankruptcy in Melbourne
Bankruptcy is the legal process where an individual declares that they are unable to pay their debts. It provides relief from creditors and releases you from most debts, so you can get on top of your financial situation.
Once you have declared bankruptcy, a Registered Trustee takes control of your estate. They may sell your assets and use any money that is collected to repay your debts. After this process is complete, most remaining debts are extinguished, and you can continue life as normal.
SV Partners - Melbourne's Bankruptcy Specialists
As Melbourne’s bankruptcy specialists, SV Partners can assess your situation and determine whether bankruptcy is the best solution. While it has benefits, bankruptcy should be considered a last resort, and we will explore every alternative.
Contact our Melbourne office immediately if you are advised by a creditor or legal professional that you are being made bankrupt. It’s important to respond immediately if action is being taken against you.
Melbourne Office
Melbourne’s Bankruptcy Process
Melbourne’s bankruptcy procedure is straightforward. Applying is simple, and the Australian Financial Security Authority typically provides a decision within 48 hours. The complete process follows four basic steps:
1. Submit a Bankruptcy Application
The process begins when you submit a bankruptcy petition to AFSA. Reach out to SV Partners to assist. We can make an application on your behalf to streamline the process.
2. The Trustee Takes Control
If your application is approved, a Registered Trustee takes control of your estate. They will investigate your finances and sell assets to repay as much debt as possible.
3. Creditors Receive Payment
If your application is approved, a Registered Trustee takes control of your estate. They will investigate your finances and sell assets to repay as much debt as possible.
4. Discharge From Bankruptcy
You are discharged from bankruptcy at the end of the process. Any remaining debts that were included in your bankruptcy are forgiven, and you can continue life as normal.
Bankruptcy comes with several major, long-term effects. It may limit your ability to obtain new lines of credit, travel overseas and operate as the director of a company. While the process is relatively straightforward, it’s important to seek professional advice from our bankruptcy specialists in Melbourne.
What Debts Are Covered by Bankruptcy in Melbourne?
Bankruptcy releases you from most types of unsecured debts. That includes credit card debt, personal loans, utilities bills, medical fees, ATO debts and more. Bankruptcy does not include:
HECS/HELP loans
Court fines and fees
Child/spousal support and maintenance
Debts incurred after the bankruptcy begins
Secured debts
Creditors who hold secured debts (such as your home loan or car loan) can demand payment as usual. You will need to consult your Melbourne bankruptcy specialist and discuss whether you can continue paying these loans.
Melbourne’s Bankruptcy Specialists
In 2011, SV Partners merged CJL Partners to become one of the largest accounting and insolvency firms in Melbourne. SV Partners offers a suite of liquidation, bankruptcy and insolvency services across Melbourne and Victoria.
We provide tailored solutions designed to suit individuals, accountants, corporations, legal advisors and their clients. If you are facing times of growth, change and uncertainty, our team can help.
Working with our Melbourne office is simple thanks to our obligation free consultation process. Contact us to book a confidential discussion.
