Debt Managers to Help You Through Bankruptcy Proceedings

The financial crisis that has affected many parts of the western world may not have much of an impact in Australia, because of the thriving economy. But there have been cases of families that have not made this transition, and are under tremendous financial stress. On closer analysis, it has been found that one of the reasons people are declaring bankruptcy is due to overstretching their financial resources and losing control of their spending habits.

Upward Trend in Bankruptcy
In Australia, there are hundreds of ordinary families who have had the misfortune to declare bankruptcy as a way to keep their creditors at bay. However, the government has allowed debt managers to help people who are facing bankruptcy; this type of personal bankruptcy gives you the opportunity to wipe the slate clean and start again. There are certain conditions that have to be met before you are eligible to declare bankruptcy in Australia. Firstly, you have to be an Australian resident and should be managing or running a business. To help you through these procedures and assist you to manage your debts successfully, you might have to take help from specialized companies.

Using a Debt Manager
Having obtained the services of a debt manager, he will check out your finances thoroughly, list all your assets and liabilities, and come up with a plan for consolidating your debts. One of the methods used by bankruptcy courts to help repay your debts is by arranging credit for bankruptcy or a debt consolidation loan. Once your bankruptcy hearing and petition is sanctioned, you are given to the opportunity to take out a single consolidated loan to clear your outstanding liabilities. This gives you some breathing space and also a chance to repay the loan at much lower interest rates, and a longer repayment schedule.

Manage Your Finances Wisely
When you begin personal bankruptcy proceedings, the first thing you have to do is file a petition at the district bankruptcy court. They will then make an arbitrary decision whether to extend your current repayment schedule to pay off the debts or try to find another solution. It is not a simple matter to declare bankruptcy in Australia; there are many intricate legal issues involved, and using the services of a legal expert is the way to go. Through the services of a debt manager, you have to inform the Insolvency and Trustee Service, Australia and fill the debtor's petition form as well as a current statement of affairs form. These will then be reviewed by a committee who will appoint a trustee who will list all of your assets. Once these procedures are completed, you will have another chance to live a normal life.