Bankruptcy can provide relief from your debts and an opportunity to reset your personal finances. If you are considering bankruptcy or want to understand the effects of bankruptcy we have information here that can help. Alternatively, you can give us a call on 1300 906 966 and we can discuss your circumstances.
Bankruptcy will be recorded on your credit rating report. Credit reporting agencies (such as Equifax) will keep note of your bankruptcy for the longer of:
- Five years from the date you became bankrupt; or
- Two years from when your bankruptcy ends.
Bankruptcy will have a negative impact on your credit rating. The extent of this impact is difficult to determine as its significance varies between different credit providers.
Who Else Can Find Out You Are Bankrupt?
Your bankruptcy will have a permanent listing on the National Personal Insolvency Index (NPII). This is a public register than can be searched by credit providers for a fee.
Some other information that may appear on the NPII register is listed below:
- Your name, date of birth, address and occupation that you disclose on your Bankruptcy Form;
- Any previous names and aliases;
- The start date and your bankruptcy number;
- The name and contact details of the trustee of your bankruptcy; and
- The current status of the bankruptcy, such as whether you’re discharged.
Can You Avoid Bankruptcy?
If you have financial problems, there are options that may be available to you to avoid bankruptcy This includes negotiating debt settlements with your creditors, which we can assist with. If you are able to settle some or all of the debts which you owe, you may be able to avoid bankruptcy.
Some examples where we have helped our clients settle debts which they owe include:
- Settling a debt of over $130,000 to a financier, which with our assistance, was settled for $30,000.
- Settling a debt owed for mortgage shortfall after a property had been sold which was over $250,000, but with our assistance was settled for $50,000.
If debts are settled through negotiation then you can naturally avoid bankruptcy and the problems which are associated with it being recorded on your credit report and the NPII register.
Contact Us For Assistance
If you have debts you can’t pay and would like to know more about your options, call us on 1300 906 966 or send us an email at email@example.com to arrange a free confidential initial discussion.