If you are seeking for bankruptcy information, it would probably mean that you understand the gravity of the issue. Being bankrupt is not a joke. Bankruptcy declarations should only be done under dire circumstances that are completely unavoidable.
Bankruptcy may be the option for you if you are suffering from a terrible debt or financial crunch. The idea is to try and prevent the need for bankruptcy to be declared.
You can consult an expert in your area and he/she may be able to help you with numerous alternative options to bankruptcy in Australia. The professional understands the case, highlights where the debt is from and figures out a solution for it. There are 4 common alternatives to bankruptcy. These are;
- Restructuring of finances. The first and most basic thing that should be done is to determine if the spending of finances is optimal. The incoming income should be streamlined towards critical immediate debts first and other issues later. The entire of the financial circuit should be maintained as such.
- Consolidating high interest debts. Many debts have high interests and that makes the late payment very dangerous and a high attribute to bankruptcy. To handle this, a good alternative is to take a consolidated loan from the bank at a lower rate of interest. This money can be used to get the creditors of your back while u pay back the main loan in a more gradual, hassle free manner.
- Individual Voluntary Agreements (IVA). These are agreements made between you and your creditor. These agreements are on a one to one basis where the debtor understands your situation and agrees for a time period extension or an E.M.I. system payment or even agrees to decrease the amount to be paid each time.
- Debt management plans. These are plans used with facilitation of the helpline professionals. A single amount each month is set aside for all debts. The payment is then broken up amongst the creditors and paid in proportion to urgency.
There are many options available other than outright bankruptcy. What is important is to avail all these options, understand them carefully and apply whatever is applicable to your circumstances!