Declaring Bankruptcy in Sydney
Bankruptcy is a formal legal process that declares you are unable to repay your debts as they fall due. While it can provide relief from creditors and discharge most debts, bankruptcy also comes with long-term consequences that can impact your financial future.
If your bankruptcy application is approved, a Registered Trustee from SV Partners will take control of your estate. The Trustee’s role is to manage, protect, and realise your assets to repay creditors where possible.
SV Partners – Sydney’s Bankruptcy Specialists
Bankruptcy should always be considered a last resort. Alternative options are available, and the bankruptcy specialists at SV Partners can assess whether it is the right solution for your circumstances.
If you have been served with a statutory demand by a creditor, lawyer, or debt collector, acting quickly is crucial. Contact our Sydney office today for expert advice and guidance on your next steps.
Sydney Office
Sydney’s Bankruptcy Process
The Australian Financial Security Authority (AFSA) oversees the bankruptcy process in Australia. Once you submit an application, AFSA will assess your financial situation and typically provide a decision within 48 hours. From there, the process follows four key steps:
1. Submit a Bankruptcy Application
SV Partners can assist in preparing and submitting a bankruptcy petition to AFSA on your behalf. Our team ensures the process is handled efficiently, minimising stress and guiding you through every step.
2. The Trustee Takes Control
Once your petition is approved, a Registered Trustee is appointed to take control of your estate. The Trustee investigates your financial affairs, manages your assets, and liquidates eligible property to repay creditors where possible.
3. Creditors Receive Payment
The Trustee distributes any recovered funds to creditors in a predetermined order. Before this, the Trustee’s fees and costs are deducted from the available funds.
4. Discharge From Bankruptcy
Bankruptcy typically lasts for three years and one day. Most outstanding debts are cleared upon discharge, and creditors can no longer pursue you for repayment.
Bankruptcy has serious, long-term consequences, including restrictions on accessing credit, international travel, and serving as a company director. While the process is straightforward, it’s essential to seek professional advice.
Contact our Sydney bankruptcy specialists at SV Partners to determine if bankruptcy is the right option for you.
What Debts Are Covered by Bankruptcy in Sydney?
Most unsecured debts can be included in a bankruptcy application. These typically include personal loans, credit cards, rent, utility bills, tax debts, and more. However, some debts cannot be discharged through bankruptcy, such as:
- Secured debts
- HECS/HELP debt
- Court fines and fees
- Child/spousal support and maintenance
- Debts incurred after bankruptcy begins
If you have secured debts—such as a mortgage or car loan—you are still responsible for making repayments during bankruptcy. If you are unable to meet these obligations, secured creditors have the right to repossess and sell the asset used as security for the loan.
Our Sydney bankruptcy specialists can help you assess your financial situation and explore the best options for managing your secured and unsecured debts. Contact SV Partners today for expert advice.
Sydney Bankruptcy Experts
SV Partners provides a full range of bankruptcy, insolvency, and financial recovery services across Sydney and New South Wales.
We understand that every financial situation is unique, and our tailored solutions are designed to help individuals confidently navigate financial distress. Whether you're facing uncertainty or financial hardship or considering your options, our expert team is here to help.
Contact us today to schedule a confidential, obligation-free consultation and explore the best path forward for your financial future.
