Bankruptcy in Australia is a subject that is often misunderstood.

Bankruptcy and debt agreements in Australia are looked after by a government body called ITSA or the Insolvency and Trustee Service Australia.

Bankruptcy can sometimes solve financial problems but should only be considered as a last resort and never be considered before speaking to a insolvency professional about your circumstances.

There are often other options besides bankruptcy to help Australians in debt.

Bankruptcy Australia

If you are undergoing harassing creditor phone calls or letters then bankruptcy may seem like a tempting option. It should be, if at all possible, avoided.

If you do not pay enough attention to your bad debts and you owe over $2,000, it is possible for a creditor to make you bankrupt. You can, however, declare yourself bankrupt owing any amount.

In Australia, the general amount of time that you must remain bankrupt is 3 years, however there are certain circumstances which can extend this amount of time.

You should do thorough research into bankruptcy in Australia before taking any steps towards it.

Before considering bankruptcy as the only alternative, research some of the other options that may be available to help you with your debts (depending on your individual financial situation).

They could be a debt agreement, negotiation directly with your creditor, Debt Consolidation or even a mortgage refinance.

One source for good advice for Australians on bankruptcy and reducing debt is Fox Symes. Another is Bankruptcy Australia, which provides a wide range of bankruptcy solutions