Find out the short and long term consequences of applying for bankruptcy. Read on…
Question:
I am in debt by over $500,000 and have little assets left. I am a low wage earner, have an old car and rent my flat. I have been advised to apply for bankruptcy. Can you give me some information about the process and the short and long term consequences?
Answer:
Before you take the drastic step of applying for bankruptcy, have a financial health check-up with a financial counsellor. Do not commence the application process until you are fully informed as the decision to declare bankruptcy cannot be withdrawn.
Financial counsellors provide a free and confidential service that can examine the good, the bad and the ugly aspects of bankruptcy.
The financial counsellor will explore all the options and explain fully the short and long term consequences. These options may include increasing income, reducing expenditure, negotiating with creditors, consolidating loans, borrowing from family or friends, selling assets, budgeting, doing nothing, and finally, bankruptcy.
To find out more you can visit the bankruptcy website on www.afsa.gov.au or phone 1300 364 785. To locate your nearest financial counselling office for your financial health check-up, phone the financial counselling Help Line on 1800 007 007 to arrange a personal appointment.
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