What is very important in finances is to plan ahead. A situation of Bankruptcy is a result of not planning in advance. But this mistake can be rectified now, by planning for Bankruptcy. And an important part of planning is information. Bankruptcy information while readily available on the internet is scattered and often misleading.
The term Bankruptcy often seems intimidating. This article however for a change will be on How to go Bankrupt in Australia, and not how to prevent it. Yes declaring Personal Bankruptcy in Australia is a painful process and entails some restrictions, but overall it turns into a liberating process.
Bankruptcy is often portrayed as a crime and is looked down upon in social circles. It is however to the contrary. A debtor while requesting for bankruptcy is ready to give over his assets in part for repayment of debt. It is as respectable as that. The pressure of debts is huge. It is only when you have experienced this feeling of getting up each day and thinking of the accruing interests on debts, that you understand the meaning and significance of being debt free.
Each new phone call might be from the bank or the creditors, calling from new numbers, building up the pressure. This kills creativity and all the zeal to work goes down the drain in the morning itself. By thinking of declaring Bankruptcy, if you are doing so, you have taken the first step towards liberating yourself.
You may be declared a Bankrupt in Australia by either of the two ways-
- Debtor's Petition – Voluntary lodge a petition to become a bankrupt.
- Sequestration Order – A Creditor may take action to have you have you declared a bankrupt.
It would of course be advisable to take the first course of action, if such a situation ever haunts you. While the situation and condition will be the same, in the case of sequestration order, you wouldn't be mentally prepared for bankruptcy. In case you voluntarily request Bankruptcy, you accept it on your own terms and after due consideration.
Yes some of your assets and freedom in financial planning will be limited and certain obligations towards the creditors, courts and the government will have to be complied with. But that's that. No more of those pesky calls and harassing emails, you could give wings to your creative mind to focus on income generation and repaying it as early as possible.
Some people also worry about Bankruptcy spoiling their credit report, therefore making it difficult for them to get credit while they are bankrupt. But this situation prevails only for a certain time while you are bankrupt. Once the debt has been paid, the records will be set straight and you can again give your dream another shot and satisfy the bubbling entrepreneurial instincts without the anxiety and stress of financial insolvency upon your head.
However, thinking and planning ahead is crucial, and it is advised that you consult the experts who are familiar with the process and ease the anxiety associated with Bankruptcy. Bankruptcy information and advice on how to go Bankrupt from the experts and experience in this field would ease the whole process and make it liberating instead.