Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Perth, Australia Attorneys in related practice areas.
Bankruptcy and Debt Law in Perth, Australia is focused on providing legal remedies for individuals and businesses struggling with unmanageable debt. When a person or an entity can't meet their financial obligations, they may choose to file for bankruptcy as a way to seek relief and reorganize their finances. Bankruptcy is a legal process overseen by the Australian Financial Security Authority (AFSA). Filing for bankruptcy can significantly impact a person's financial future, therefore understanding the legal implications is vital.
If you're facing severe financial problems, being overburdened by debt, or considering bankruptcy, it's recommended to seek legal counsel. A lawyer can provide an assessment of your financial situation and discuss your options. They can help you understand the impacts of bankruptcy, navigate the complex legal system, and provide representation if creditors challenge your bankruptcy. Lawyers can also assist in negotiating with creditors and developing agreements on your behalf to help mitigate the damage of bankruptcy on your financial history.
Australian Bankruptcy law allows debtors who cannot pay their debts to either declare bankruptcy or propose an alternative to their creditors. When a person is made bankrupt, their assets are seized and fall under control of a trustee who will sell them to repay their debts. There are exemptions, including basic household items and certain types of income. Bankruptcy in Australia typically lasts for three years and can affect your ability to travel overseas, obtain credit, or hold certain public positions. There are serious penalties, including imprisonment for breaching bankruptcy restrictions or providing false information.
Depending on the circumstances, there may be alternatives to bankruptcy such as a debt agreement, personal insolvency agreement, or informal arrangements. An experienced bankruptcy lawyer can guide you to find the most suitable option.
A debt agreement is an alternative to bankruptcy, but it is still an act of bankruptcy. Unlike full bankruptcy, it allows you to negotiate to pay a percentage of your combined debt that creditors must accept.
Not all debts are cleared by bankruptcy and you may still be required to pay certain types of debts such as court fines, student loans, debts incurred after the date of bankruptcy, and secured debts for items like cars or houses if you decide to keep them.
When you declare bankruptcy, your assets are transferred to a trustee who sells them to pay your debts. There are certain assets that are protected, including most household goods, tools of trade up to a certain value, and vehicles up to a certain value.
In Australia, bankruptcy generally lasts for three years, but can be extended in certain circumstances.
There are many resources available to help you understand bankruptcy and debt laws in Perth, Australia. The Australian Financial Security Authority (AFSA) and National Debt Helpline provide comprehensive information about the process of bankruptcy, alternatives, and assistance available to those facing financial hardship.
If you are considering bankruptcy or grappling with substantial debt, it is advisable to consult with a bankruptcy attorney or a financial counsellor. They can provide personalized advice and guide you through your options to make an informed decision. Note that acting early can give you more control over your financial situation and can potentially prevent bankruptcy.
