Filing Bankruptcy in Hervey Bay
If you cannot repay your debts and can’t reach any suitable arrangement to settle your debts with the creditors, you can relieve yourself by lodging a petition to be declared bankrupt following the law. It is a legal process to relieve you of all the debts. It is allowed by the law to declare bankruptcy voluntarily if you feel the debts are overwhelming. In that sense, a trustee will be appointed by authorities to manage your financial affairs.
Before filing
Know if you need to file a bankruptcy, the matter of the fact is, you may not need one. Bankruptcy is a handy tool to erase debts on credit cards and medical bills, and you can only access this once in eight years. So it only makes sense for those with a huge amount of debts. Otherwise, you should try to explore other means of settling your debts.
To successfully file bankruptcy, you need a bankruptcy attorney to advise you on how to optimise the economic value of bankruptcy. Otherwise, if it is only too much debt on a credit card, you can handle it on your own. For low-income earners who cannot afford a lawyer, there are non-profit organisations that will assist free of charge in lodging bankruptcy.
How to file
Collect relevant documents
Collect all of your financial statements and documents so that you can vividly understand your current financial position. First, obtain a financial report of your credit card from relevant agencies for you to know the exact amount you owe. Make a list of those debts not listed on your credit cards like medical bills, personal loans, tax debts, etc.; you will need them when filing bankruptcy.
Aside from the credit card report, you also need the following:
- Income tax returns for the last two years
- Your pay stubs and other proof of income for six months
- Latest bank account statements
- Recent retirement and brokerage account statements
- Valuations of real estate owned by you or any affiliates
- Copies of your vehicle registrations
- Other statements relating to income, assets, and debts
With all these documents, you can ascertain the real picture of your financial status.
Seek credit counselling
It is important to take credit counselling before filing bankruptcy. By law, everyone who files bankruptcy is required to take credit counselling approved by the department of justice. This course is handy because it will shed light on situations for you to understand if there are other informal avenues you can explore to alleviate your debts and come back to good books soon. The counsellor will guide you through your financial status and find ways to consolidate your debts and find dependable means to settle your debts. Filing bankruptcy should be the last option when you feel you have touched the dead ends.
Complete the bankruptcy forms
This the most crucial step and the most time-consuming stage when filing bankruptcy. The forms you fill will ask everything you spend, what you own, and everything you owe. There is a software that will assist you in filling out these forms, otherwise, fill them manually.
Pay your filing fee
You need to pay the filing fee to the court, and if you don’t have the funds now, then there is a special form to fill. Present your bankruptcy files to the court and wait for the affirmations.
Filing for bankruptcy is a daunting process. Hervey Bays leading accounting firm can help it make it easier for you.