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Bankruptcy

Is There Another Option?

It is our holistic advice to Individuals that sets LemonAide apart from the competition.

Given the hands-on experience as an accountant within the insolvency industry for more than 22 years, I will be able to tell you if Bankruptcy is right for you or if there is a better alternative to suit your circumstances.

I believe that Bankruptcy should be the absolute last option for a person and if possible, it should be avoided at all costs.

Bankruptcy is a legal process that allows individuals to discharge most of their debts and start fresh financially.

However, it comes with significant consequences, such as a long-lasting impact on your credit score and potential limitations on future financial opportunities.

Look, I get it, this is a scary place to be in. But do yourself a favour… do not listen to your friends or family (unless they are an experienced insolvency practitioner).

Click the Book an Appointment button now and book an initial client meeting with me today, so that together we can explore the alternatives to your unique situation.

Book an Appointment

Restarting Your Financial Future

Bankruptcy is a way for you to re-start your financial future without all the debts. However, some debts will remain after bankruptcy, including:

  • HECS (Higher Education Contribution Scheme) debts
  • Child Support
  • Pecuniary Penalties (speeding fines, court fines, etc.)
  • Debts incurred by fraud

All other debts will be a part of your Bankrupt Estate.

The Stigma Surrounding Bankruptcy

I know it may seem daunting due to public stigma surrounding bankruptcy, but bankruptcy is no longer advertised in the newspaper. Your friends and family are unlikely to find out about your Bankruptcy unless they are a creditor of your estate or you tell them that you are Bankrupt.

It’s essential to note that bankruptcy can have a significant impact on your credit score and may limit your ability to obtain credit, secure housing, or even find employment in certain industries for several years after the bankruptcy is discharged.

LemonAide vs. Bankruptcy Trustee

Key Differences

LemonAide represents your interests and helps you prepare for bankruptcy

A Bankruptcy Trustee represents the interests of your creditors

How LemonAide Can Help

Assist in selecting an appropriate Bankruptcy Trustee

Negotiate with the Bankruptcy Trustee on your behalf

Look for ways to protect your interests throughout the process

If you are preparing for bankruptcy or have recently appointed a Bankruptcy Trustee, get in touch with LemonAide while you still have some options by booking an appointment.

There is no obligation for you to hire LemonAide to implement the proposed strategy, but after our 1st meeting together, you will feel so at ease that you will want to LemonAide in your corner.

Bankruptcy by Court Order

If you have already been made bankrupt by the Court and a sequestration order has been ordered against you, LemonAide can still help you navigate the bankruptcy process.

A sequestration order is a court order that declares an individual bankrupt. This occurs when a creditor petitions the court to make an individual bankrupt due to unpaid debts.

Bankruptcy

Public Trustee vs. Private Trustee

There are two types of Bankruptcy Trustees:

  • Australian Financial Security Authority (AFSA) – Government division
  • Private Trustees – All other registered trustees

Key Differences

Appointing AFSA is free, but they may transfer your case to a private trustee

Private trustees may charge an upfront fee to administer the bankruptcy

Both types of trustees are governed by the Bankruptcy Act, 1966, and the rules applied to you are the same.

Filing for Bankruptcy

The Process

  1. Complete a Bankruptcy Form
  2. Create an account on Insolvency Services
  3. Submit your Bankruptcy Form

LemonAide can assist you in completing the Bankruptcy Form and explain every question, what the question means, and how the information will be used by the Bankruptcy Trustee.

If you need assistance completing your Bankruptcy Form, please contact us by using the Book an Appointment button. If you would prefer a paper version of the Bankruptcy Form, please send me an email and I will email you the form in reply.

Navigating the bankruptcy process can be overwhelming and stressful, but you don’t have to face it alone. LemonAide is here to provide you with expert advice and guidance every step of the way. Book an appointment today to explore your options and find the best solution for your unique financial situation.

Book an Appointment Now
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Frequently Asked Questions

A Bankruptcy in Australia lasts for 3 years and 1 day as long as you have complied with all of your obligations.

If you have outstanding obligations a Bankruptcy Trustee can object to your automatic discharge until either you have complied with the obligations or for a further 5 years. So, it really is in your best interest to comply with your obligations under a Bankruptcy.

Yes, all debts must be declared in a Bankruptcy. You are not able to only declare some debts as you want to pay them later. Bankruptcy is designed to help you by giving you a completely fresh start.  You may pay some creditors during your bankruptcy if you choose (you are under no legal obligation to do so), however their payment is from after tax and income contributions funds.

Depending on the number of dependents and the amount you earn after tax, you may have to pay your Trustee money through income contributions if you are above the threshold. For every $1 you are over the threshold, $0.50 will need to be paid to your Trustee.

The public Trustee also known as the Official Trustee or the Australian Financial Security Authority (“AFSA”) allows people to go Bankrupt for free.

A private Trustee is a Bankruptcy Trustee that works for a private firm.

Both Trustees must operate by the same rules, however some people feel more comfortable knowing who they are dealing with on a day to day basis and thus employ the services of a private Trustee.

No, a bankruptcy is no longer advertised in the newspaper. The only people that will know of your Bankruptcy are creditors and credit providers if they do a Bankruptcy check on you. So unless you tell people that you are Bankrupt, no one really needs to know about it.

So, your credit report will have that you have been Bankrupt for a period of 2 years after your discharge. The National Personal Insolvency Index (“NPII”) also records that you went Bankrupt, forever. However, it does cost money to do a search of the NPII and not everyone does a search of the NPII when giving credit.

This depends on where you are up to with your creditors and how you have treated them, but Bankruptcy is not necessarily your only option.

I explore your other options when we have a zoom conference with you.

An agreement with creditors is designed so that you do not lose your assets. You may be able to restructure your debts or refinance to obtain some cash to make a proposal to creditors.

This is an option that we do explore when I do a conference with you.

There are a range of options that we can explore not just Bankruptcy, which includes a Section 73 proposal, Part X proposal, Part IX debt agreement or even an informal arrangement with creditors.

I will review your personal financial circumstances and make a recommendation as to which option will suit your unique circumstances, budget and desired outcome.

Customer Feedback

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“Nathan was excellent in helping me to negotiate with my creditors. His strategic advice has saved me from personal bankruptcy and even saved my car. I can now move on in my financial life, financially free. Thanks Nathan.”

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“Nathan was compassionate and professional whilst helping my husband and I save the business we built together. He made a stressful and emotional time so much easier. We would highly recommend anyone to Nathan as we know he will look after each and every one of his clients without judgement.”

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“The strategies and advice Nathan gave me was nothing short of amazing. He explained things in simple terms for me to understand. I knew straight away he had my interest at heart first and foremost. It was so refreshing to deal with someone that was helpful and willing to go the extra mile for me.”