YOUR REQUEST FOR PERSONAL INSOLVENCY FORMS/INFORMATION
Please find enclosed the forms / information reques
ted.
NOTE: When returning forms to AFSA electronically, please ensure the total size of your
email including attachments does not exceed 6MB. You may need to scan your
documents at a lower resolution to minimise the size of your attachments.
Privacy statement: If you choose to enter into a personal insolvency arrangement, you
will need to complete forms that require the provision of personal information (as
defined in the Privacy Act 1988). This information is collected under, and for the
purposes of, the Bankruptcy Act 1966 or related legislation.
Some information may be included on a public record, the National Personal Insolvency
Index and/or may be available for public inspection. Information may be disclosed for
law enforcement purposes and, in some circumstances, to overseas recipients.
AFSA’s privacy policy provides further information regarding the collection, storage, use
and disclosure of personal information, including how you may: (i) access your personal
information; (ii) seek to have that information corrected; and (iii) complain if you feel your
privacy has been breached, along with information on how your complaint will be dealt
with. The privacy policy can be accessed at www.afsa.gov.au/privacy or you can
request a copy from AFSA.
National Service Centre
Phone: 1300 364 785
Post: GPO Box 1550, Adelaide SA 5001
Email: info@afsa.gov.au
CL(FX)112015
Supporting better outcomes for consumers, business and the community.
www.afsa.gov.au
ervices
Bankruptcy
Essential forms and information
If you decide to apply for bankruptcy you will need to do the following:
1. Complete a debtor’s petition form, ensuring you have fully completed all relevant sections#
2. Complete a statement of affairs form, ensuring you have fully completed all relevant sections.
3. Ensure you have read, understood and signed the prescribed information, located ^ci]ZYZWidgheZi^i^dc[dgb#
Send your completed application within 28 days of signing to:
Email: registry@afsa.gov.au
Post: GPO Box 1550, ADELAIDE SA 5001
Note: If you have arranged for a registered trustee to administer your estate you must ask your trustee to complete a
‘consent to act as trustee’ form and lodge it along with your debtor’s petition and statement of affairs. If a completed
‘consent to act as trustee’ form is not lodged with your application, the Official Trustee (AFSA) will act as your trustee or
arrange with your creditors to appoint a registered trustee.
DO NOT USE THIS SET OF FORMS IF YOU HAVE ALREADY BEEN MADE BANKRUPT UNDER A SEQUESTRATION
ORDER
Getting help
The consequences of bankruptcy are serious and cannot be cancelled if you change your mind.
Financial counsellors help people in financial difficulty, and are available in every State and Territory. Their services are
free, independent and confidential. You can talk to a financial counsellor from anywhere in Australia by phoning
1800 007 007 (minimum opening hours are 9.30 am – 4.30 pm Monday to Friday). This number will automatically direct your
call through to a financial counselling service in the State or Territory closest to you.
IS(Bankruptcy Essential)0+2014
Page 1 of 1
?jcZ2014
Supporting better outcomes for consumers, business and the community.
www.afsa.gov.au
Insolvency
Services
Debtor’s petition
instructions and form
Instructions on how to complete the debtor’s petition form
1. Use blue or black pen.
2. Complete all relevant sections of the form.
3. Please provide proof of identity – the Official Receiver will not accept your petition for bankruptcy unless you
provide sufficient information to enable us to confirm your identity. Details from two (2) types of identification
outlined in the table below are required. The identification must be current (forms of identification that have
expired are not acceptable).
In the form, you must list in column A the type of identification you are relying on eg driver’s licence, passport etc. In
column B, write your name as it appears on the form of identification provided, and in column C the licence, membership,
customer or document number associated with the form of identification eg the passport or driver’s licence number.
Acceptable forms of identification
Australian driver licence Current state or territory issued driver licence, learner permit or provisional licence
showing your name, signature and/or photo
Medicare card Current Medicare card showing your name
Australian birth certificate Australian birth certificate, birth certificate extract or birth card in your name/former name
Australian passport Current Australian passport in your name/former name. Expired passports are not
acceptable
Citizenship certificate Australian citizenship certificate in your name/former name
Defence force identity card Issued by the Australian Defence Force, showing the same name as in your petition and
photo or signature
Passport issued outside
Australia
Current passport issued by a country other than Australia, with a valid entry stamp or visa
Student identification card Current student ID card issued in your name with signature and/or photo (school, TAFE,
university, registered training organisation)
Proof of age card Current proof of age photo identity card issued by a government agency in your name with
photo and/or signature.
Please note: while identification information is required for acceptance of your petition, you are NOT required to attach
copies of the acceptable forms of identification with your petition.
Knowingly providing false and/or misleading information is an offence under the Bankruptcy Act and penalties apply upon
conviction. Your period of bankruptcy can be extended in certain circumstances.
IS(DebtorsPetition)0+1
4
Page 1 of 2
?jcZ 2014
Supporting better outcomes for consumers, business and the community.
www.afsa.gov.au
Information and assistance
If you do not understand a particular question or require further information about bankruptcy or other alternatives,
please contact AFSA on 1300 364 785. AFSA cannot give you advice on whether bankruptcy is suitable for your individual
circumstances.
If you do not speak English, the Translating and Interpreting Service is available for the cost of a local call from anywhere in
Australia by phoning 131 450.
How your information is used
The information you provide on these forms is collected under, and for the purposes of, the Bankruptcy Act.
1. A copy of these forms will be provided to the trustee of your estate, who will use the information in them to
administer your estate.
2. The information you provide (except Part A of the statement of affairs) is available for public inspection.
3. The information may be used for the purpose of investigating offences committed under the Bankruptcy Act or
other legislation.
4. Some of the information will be recorded on the National Personal Insolvency Index (NPII) which is a public
record. It records personal information including the type of administration, your name (including previous names
and aliases), your address, date of birth and occupation. Credit rating organisations have access to the NPII,
therefore presenting a debtor’s petition is likely to affect your ability to obtain credit. The Inspector-General is also
permitted to enter into arrangements to provide NPII information to other third parties.
Can my application for bankruptcy be rejected?
Yes it can, if:
1. you have not provided appropriate proof of identity details; or
2. the Official Receiver believes that you can pay all your debts within a reasonable time AND either:
you have previously been bankrupt three (3) or more times, or once in the last five (5) years, or
you are unwilling to pay one or more creditor, or creditors in general
If you are dissatisfied with the Official Receiver’s decision not to accept your debtor’s petition you may appeal the decision
to the Administrative Appeals Tribunal (AAT).
Applications by physically incapacitated persons and/or persons unable to read
If an applicant is unable to read, is insufficiently familiar with the English language or is unable to sign/complete the form
due to a physical incapacity, another person may complete the form if:
1. where the applicant is blind, partially sighted, illiterate or partially literate – the person has read the forms and the
prescribed information to the applicant
2. where the applicant is insufficiently familiar with the English language – the person has interpreted the relevant
information to the applicant in a language with which the applicant and this other person are both familiar
3. where the applicant is unable to sign due to a physical incapacity – the person believes that the applicant has read
and understood the forms and prescribed information.
The person assisting must state the reason/s why the applicant required assistance and must sign in the panel provided on
the debtors petition form and the panel provided at the end of the statement of affairs form.
Applications by mentally incapacitated persons
Where a guardian or administrator is appointed under relevant state/territory legislation to manage the financial affairs
of mentally incapacitated persons, the appointed guardian or administrator must obtain a specific order from the relevant
court/tribunal authorising the application on behalf of the mentally incapacitated applicant.
A specific order from the relevant court/tribunal is not required for presentation of the application by a guardian/
administrator for appointments under the Protected Estates Act 1983 (NSW) and the Guardianship and Administration Act
1990 (WA) as the legislation itself provides sufficient authority to the guardian/administrator of the applicant.
Note: An application may not be presented on behalf of a mentally incapacitated debtor by the holder of a power of
attorney granted by that debtor.
Page 2 of 2
6(DP)(P
page 1 of
www.afsa.gov.au - 1300 364 785
DEBTOR’S PETITION
(APPLICATION TO BECOME BANKRUPT)
Bankruptcy Act 1966 Section 55(2)
The information you are required to provide on this form is collected under, and for the purposes of, the
Bankruptcy Act 1966 or related legislation. The Australian Financial Security Authority has a privacy policy at
www.afsa.gov.au/privacy that provides information regarding the collection, storage, use and disclosure of
personal information, including how you may: (i) access your personal information; (ii) seek to have that
information corrected; and (iii) complain if you feel your privacy has been breached, along with information on
how your complaint will be dealt with.
Privacy
Contact Details
Title Given name/s (include all names) Surname
Other names used by you in the past 10 years
Title Given name/s (include all names) Surname
Title Given name/s (include all names) Surname
Contact number (include area code) Work number (include area code) Mobile number
Email address
Address Postcode
Current occupation Date of birth (DD/MM/YYYY)
To be eligible to present this petition you must have a relevant Australian connection. Select the statement that
describes your connection to Australia.
I am personally present in Australia or ordinarily resident in Australia
I have a dwellinghouse or place of business in Australia
,RUP\¿UPSDUWQHUVKLSLVFDUU\LQJRQEXVLQHVVLQ$XVWUDOLD
page 2 of www.afsa.gov.au - 1300 364 7856(DP)(P)
I am presenting this debtor’s petition to become bankrupt (select one of the following):
as an individual debtor
against a business partnership of which I am a partner (petitions from either all or a majority of the partners need
to be submitted together with your petition)
jointly with another person and we are not in a business partnership (petition from the other person needs to be
submitted together with your petition)
Proof of Identity
Note: your petition will not be accepted if you do not provide appropriate proof of identity details below. While
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$7
\SHRILGHQWL¿FDWLRQ %1DPHRQGRFXPHQWOLFHQFH C. Document/licence number
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page 1, please explain why.
Declaration of Person Zho Assisted Zith the Completion of Forms
I declare that, before this form was completed, I carefully read to/interpreted for the person named in the Contact
Details section the prescribed information and the questions on this form or [where the person is physically
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provided in this form are those of the person named above.
Reason the debtor required your assistance
Full name and address of the assisting person
Signature of the assisting person Date (DD/MM/YYYY)
page of www.afsa.gov.au - 1300 364 7856(DP)(P)
DEBTORS PETITION PRESCRIBED INFORMATION
You must read the following information before signing the declaration.
Your Options to Deal Zith Unmanageable Debt
Talk to your creditors: some creditors could give you more time to pay, agree to renegotiate repayments or accept a smaller payment
to settle the debt. Some creditors have hardship provisions which you can use to vary the terms of your contract. You should call your
creditors and ask about their hardship provisions.
Lodge a declaration of intention to present a debtors petition: this stops your creditors, the bailiff or sheriff taking action to recover
unsecured debts for a period of 21 days. You could use that time to speak to your creditors, consider other options or seek advice.
Propose and enter a debt agreement (DA): a debt agreement is a legally binding arrangement between you and your creditors which
must be accepted by the majority of your creditors. The agreement is administered by a debt agreement administrator who will charge
a fee. Your debts, assets and income must be under certain limits* to propose a DA. You can offer to pay your creditors by instalments
or in a lump sum which may be less than the full amount of your debts. You will be released from debts covered by the agreement once
\RXKDYHFRPSOHWHGDOOREOLJDWLRQVDQGSD\PHQWVLQ\RXUDJUHHPHQW<RXUQDPHZLOOEHRQWKHSXEOLFUHJLVWHU13,,
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commercial credit record for 5 years, or longer in some circumstances. See the paragraph ‘Your ability to obtain credit and certain
services may be affected’ at the bottom of this page for additional information and obligations.
Propose and enter a personal insolvency agreement (PIA): a PIA is also a legally binding arrangement between you and your
creditors which must be accepted by a majority of your creditors. The PIA must be administered by a trustee who will charge a fee. There
are no debt, asset or income limits. You can offer to pay your creditors by instalments or in a lump sum which may be less than the full
amount of your debts. You will be released from debts covered by the agreement once you have completed all obligations and payments
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some circumstances.
Sources of further information: \RXFDQDVNIRUKHOSIURPD¿QDQFLDOFRXQVHOOLQJVHUYLFHUHJLVWHUHGWUXVWHHUHJLVWHUHGGHEWDJUHHPHQW
administrator, lawyer or an accountant. They will talk to you about your options and may speak to creditors on your behalf.
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visiting www.afsa.gov.au.
Consequences of Proceeding Zith a Petition Ior Bankruptcy
A trustee will administer your bankruptcy: you may ask a registered trustee to administer your bankruptcy. If you do not choose a
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creditors can change your trustee. You must assist your trustee at all times. You must immediately notify your trustee in writing of any
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they recover.
Your assets may be sold: you will be able to keep ordinary household goods, tools (up to a certain value)* used to earn an income and
vehicles (up to a certain value)* but other assets - including your house - can be sold by your trustee. You cannot conceal, remove or
dispose of any property inside or outside Australia. If you do, you may be subject to criminal prosecution.
Your income, employment and business may be affected: if your income exceeds a set limit*, you may be required to make
contributions from your income. You cannot be a director of and/or manage a company. Some professional/licensing bodies may restrict
or prevent you from continuing in that trade or profession. You may not be able to hold certain public positions. If you are in business and
trade under a business name different to your own, you must tell everyone you deal with that you are bankrupt. If you don’t, you may be
subject to criminal prosecution.
You may not be released from all debts: you are released from most of your unsecured debts (eg credit cards, personal loans, store
cards) once you are discharged from bankruptcy. Some types of debts are not covered by bankruptcy (eg debts incurred by fraud,
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on a house or a car) and you do not maintain repayments, that creditor can repossess and sell the asset; however the shortfall, if any,
will be covered by bankruptcy.
Your ability to travel overseas will be affected: you will not be able to travel overseas without the written permission of your trustee
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required to pay an overseas travel application fee.
Your name will be on the public register (NPII) forever: it will also be recorded on a commercial credit record for 5 years, or
longer in some circumstances.
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provider that you are bankrupt. If you enter into a hire purchase agreement or a contract for the hiring or leasing of any goods whereby
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by promising to supply goods or render services, you must tell the purchaser that you are bankrupt. If you don’t disclose your bankruptcy
in these circumstances, you may be liable to criminal prosecution.
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I Acknowledge What I Kave Received and Read the Prescribed Information
Your signature Date (DD/MM/YYYY)
3(SOA)(P)032014
page 1 of 25
www.afsa.gov.au - 1300 364 785
Ofce Use Only
Document received (DD/MM/YYYY)
STATEMENT OF AFFAIRS
Bankruptcy Act 1966
Form last approved by Inspector-General 1/12/10.
Privacy
The information you are required to provide on this form is collected under, and for the purposes of, the
Bankruptcy Act 1966 or related legislation. The Australian Financial Security Authority has a privacy policy
at www.afsa.gov.au/privacy that provides information regarding the collection, storage, use and disclosure
of personal information, including how you may: (i) access your personal information; (ii) seek to have that
information corrected; and (iii) complain if you feel your privacy has been breached, along with information
on how your complaint will be dealt with.
Your Name
Print name in full
Title Given name/s Surname
If you do not speak, read or write English, the Interpreting Service is available for the cost of a local call on 131 450.
Contents of the Statement of Affairs Page
PART A – PERSONAL DETAILS - CONFIDENTIAL 3
PART B – PERSONAL DETAILS - PUBLIC 11
PART C – YOUR ASSETS - PUBLIC 12
PART D – YOUR LIABILITIES - PUBLIC 17
PART E – BUSINESS DETAILS - PUBLIC 19
DECLARATION 24
CHECKLIST FOR STATEMENT OF AFFAIRS 25
Ofce Use Only
Date led Event number Administration number
page 2 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
25
ADDITIONAL NOTES
page 3 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
PART A – PERSONAL DETAILS - CONFIDENTIAL
1 Your Personal Details
Home telephone number Work telephone number Mobile number Fax number
Email address
Do you prefer to receive correspondence by email where possible?
No Yes
Name and address of a contact person who does not live with you
Title Given name/s Surname
Address Postcode
Telephone number Relationship
Do you have any passports? No Yes
If yes, how many? please give details
Passport 1
Passport number Expiry date Country of issue
Passport 2
Passport number Expiry date Country of issue
Do you have a current driver’s licence? No Yes
please give details
Licence number Expiry date State of issue in Australia Other
Are you of Aboriginal or Torres Strait Islander origin? (optional) No Yes
Were you born overseas? (optional) No Yes
please give details
Which country? (optional)
What languages do you speak at home? (optional)
2 Accountant
Do you have an accountant? No Yes
please give details
Firm name Contact person Phone number
Address Postcode
page 4 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
3 Solicitor
Do you have a solicitor? No Yes
please give details
Firm name Contact person Phone number
Address Postcode
4 About your family
Do you have a spouse/partner? No Yes
please give details
Your spouse/partner’s full name
Do you live with your spouse/partner?
No Yes
What is your spouse/partner’s separate gross income ($) per year, OR per week
Do you have any dependants residing with you?
(eg spouse, children, parents, invalid relative)
No Yes please give details
Full name Relationship Date of birth Separate income ($)
5 Child Support
In the next 12 months, do you expect to pay or receive any
nancial support under the Child Support (Assessment) Act
or the Family Law Act 1975?
No Yes
Please give details and provide a
copy of the assessment or order
Paid to/received from Amount ($) Frequency
I pay child support/maintenance
I receive child support/maintenance
page 5 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
6 Family Law Financial Proceedings
Have you been a party to a family law property
or spousal maintenance order or agreement?
No Yes
Please provide a copy of the agreement or
order
Date of the order
Are you currently involved in any family law
property or spousal maintenance proceedings?
No Yes
Please provide a copy of the application. Do
not include proceedings for custody of children
Are you likely to become involved in any
such proceedings?
No Yes
7 Legal Actions
Are you involved in any legal processes or disputes?
No Yes
Provide a copy of the summons, writ or
other legal documents and letters
Plaintiff Defendant Court Plaint no.
8 Proceeds of Crime Orders
Are you or your property subject to a proceeds of crime
order or an application for a proceeds of crime order?
No Yes Provide a copy of the order
9 Summary of your Income in the last 12 months
Provide details of your income (before tax) over the past 12 months.
Type of income Details $
Government benets/pensions
Payment type:
Income from self employment
Business name:
Income from business
Business name:
Gross wages & salary before tax
Employer name:
Superannuation retirement funds
Fund name:
Lump sum termination payments
Received from:
Deceased estate or trusts
Received from:
Income from investments
(eg dividends, interest, trusts)
Received from:
Income from reverse mortgages
Received from:
Any other source
Received from:
Total
You must provide evidence of your income (eg payslips, tax returns, statements)
page 6 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
10 Summary of your Expected Income in the next 12 months
Provide details of your income (before tax) that you expect to receive in the next 12 months.
If you are not sure, please estimate.
Type of income Details $
Government benets/pensions
Payment type:
Income from self employment
Business name:
Income from business
Business name:
Gross wages & salary before tax
Employer name:
Superannuation retirement funds
Fund name:
Lump sum termination payments
Received from:
Deceased estate or trusts
Received from:
Income from investments
(eg dividends, interest, trusts)
Received from:
Income from reverse mortgages
Received from:
Any other source
Received from:
Total
You must provide evidence of your income to your trustee (eg payslips, tax returns, statements) on the anniversary
of your bankruptcy and when your income changes
11 Employment Status
Are you currently employed?
No Yes Go to Q12
How long have you been unemployed? Years Months
What was your occupation when you
were last employed?
Go to Q15
page 7 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
12 Current Employment
Employer details Job 1 Job 2
Name
Address
Employed as
Type of industry
Pay period (week/fortnight/month)
How many hours do you work per
week?
Is your employer a related entity?
No Yes No Yes
If you are unsure whether your employer is related, please refer to the instructions in the front of this booklet before
answering this question.
Employment Income Job 1 ($) Job 2 ($)
Income
Gross pay per pay period
(before tax) (A)
Deductions
Income tax
Garnishees by creditors
Superannuation
Maintenance/child support
Other
Total Deductions
(B)
What is your net pay? ($)
(A)–(B)
Provide your payslip
13 Private Health Insurance
Do you have private patient hospital cover?
No Yes
14 Salary Sacrice
Is your salary now or at any time in the last 2 years subject to a
salary sacrice arrangement? (that is, you have given up cash
wages for another type of non-cash benet)
No Yes please give details
page 8 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
15 Superannuation Benets
Does any party make a superannuation contribution for you? No Yes please give details
Name and address of the
person making the payment
Where is it paid to? How much is paid? ($ per week)
16 Other Benets
Do you, or any member of your family, receive or expect to receive
any benet from any other person or entity? (include rent, low
interest loans, payment of your expenses or children’s education)
No Yes please give details
Type of benet 1 2
Name of person giving benet
Name of person receiving benet
Value of benet per year ($)
Your contribution per year ($)
17 Motor Vehicle Benets
Do you use a vehicle which is owned by someone else? No Yes please give details
Owner’s name and address
Relationship (eg employer/spouse) When did the owner purchase the vehicle?
Make of vehicle Model of vehicle Year of manufacture
How much do you contribute for the
use of the vehicle? ($)
How many days per week
do you have the vehicle?
How many kilometres do you travel per
week?
page 9 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
18 About Your Insolvency
What do you believe is the main cause of your insolvency?
Tick one cause only in either 18A or 18B that best describes the main cause of your nancial difculties.
18A Non business related
Unemployment or loss of income
Adverse legal action
Liabilities due to guarantees
Gambling, speculation & extravagance in living
Ill health or absence of health insurance
Domestic discord or relationship breakdowns
Excessive use of credit facilities including losses on repossessions, high interest payments and
pressure selling
18B Business related (only applies if you have personally operated a business)
Economic conditions affecting industry, including competition, credit restrictions, fall in prices or
increases in costs
Lack of business ability including underquoting or failure to assess potential of business
Excessive interest payments on loan monies and capital losses on repayments
Excessive drawings including failure to provide for taxation
Inability to collect debts due to disputes, faulty work or bad debts
Failure to keep proper books of account and costing records
Lack of sufcient initial working capital
Gambling or speculation
Seasonal conditions including oods and drought
If other reason not listed, please specify:
18C When did you rst have difculty paying your debts? (month/year)
18D Where did you obtain information about bankruptcy and the alternatives? (tick one only)
AFSA Financial Counsellor Accountant
AFSA pamphlets Registered Trustee Solicitor
AFSA website Debt agreement consultant/
administrator
Other
18E Have you previously presented a declaration of intention to present
a debtor’s petition, proposed or entered into a debt agreement or a
personal insolvency agreement or become bankrupt? No Yes please give details
Type of proceeding Administration number Year
Bankruptcy
Part IX debt agreement
Part X personal insolvency agreement
Declaration of Intention to present a debtor’s petition
page 10 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART A – PERSONAL DETAILS - CONFIDENTIAL
BLANK PAGE
page 11 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART B – PERSONAL DETAILS - PUBLIC
Any information provided from this point on is available to the public
PART B – PERSONAL DETAILS - PUBLIC
19 About You
Gender
Male Female
Date of birth
Title
Mr Mrs Ms Miss Other
Family name Given names
List all other names you have used in the last 10 years
Residential address Postcode
Do you own or are you buying this property?
No Yes
please give details at Q28
If no to the question above, are you renting this property?
No Yes
Previous two residential addresses. Address 1
Postcode
Did you own or were you buying this property? No Yes Date sold
Address 2
Postcode
Did you own or were you buying this property? No Yes Date sold
20 Occupation
What is your usual trade or profession?
21 Business
In the past 5 years have you operated a business as a
sole trader, via a partnership, via a company or a trust?
No Yes Provide details in Part E
Postal address
Postcode
page 12 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART C – YOUR ASSETS - PUBLIC
PART C – YOUR ASSETS - PUBLIC
22 Cash
How much cash do you have? (include cash at bank at Q23) $
23 Banks / Building Societies / Credit Unions/ Other Financial Institutions
List all accounts held (include joint and overdrawn accounts) with any of the above types of institutions within the
last 12 months. (Note: presently overdrawn accounts should also be included as creditors at Q40)
Full name of bank/other
nancial institution
Branch name Account number and
account type
Current balance ($) Joint account
No Yes
No Yes
No Yes
No Yes
24 Tax Refund
Do you expect to receive a tax refund?
No Yes
please give details
Year ended Amount expected ($)
30 June
30 June
25 Tools of Trade
Do you have tools of trade?
No Yes
please give details
What is their estimated resale value? ($)
26 Superannuation and Life Insurance Policies
List all superannuation funds and life insurance policies
Name of fund Is this a regulated fund? Balance of fund ($) Type of fund
No Yes Super Life
No Yes Super Life
No Yes Super Life
Have you received a superannuation payout from any fund in the last
5 years?
No Yes
please give details
Date received Amount received ($)
Have you made a lump sum payment to any superannuation fund in
the last 5 years?
No Yes
please give details
Date paid Amount paid ($)
Do you expect to receive payment from any superannuation fund in
the next 3 years?
No Yes
page 13 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART C – YOUR ASSETS - PUBLIC
27 Vehicles
Do you own, or have an interest in any vehicles?
(this includes cars, motor bikes, trailers, caravans, campervans, boats)
No Yes please give details
Type of vehicle
(eg car, boat)
Make Model Year Registration
number
Estimated resale
value ($)
Amount owed
(if any) ($)
Please copy this page if you own more than one property.
28 Real Estate
Do you own, or are you buying, any land or buildings in Australia or overseas?
(This includes any interest in vacant land, house, unit, commercial property)
No - Go to Q 29
Yes - please give details
Is there a building on the land? No Yes please give details
Type eg house/unit
Age of building in
years
Number of
bedrooms
Number of
bathrooms
What is the property address?
Date the property was acquired or purchased Amount paid to acquire or purchase the property ($)
What is the estimated resale value of the property?
($)
How much do you owe to creditors who hold security over
this property? ($)
Are there any other owners?
No Yes please give details
Owner 1 Owner 2
Name
Address
Is the property vacant?
No Yes
Do you live at the property?
No Yes
Does your partner live at the property?
No Yes
Is the property rented to tenants? No Yes please give details
Gross rent per week ($) Name of person collecting rent
Address
page 14 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART C – YOUR ASSETS - PUBLIC
Is the property listed for sale? No Yes please give details
Agent’s name
Address
Is the property insured?
No Yes
Expiry date
29 Shares
Do you own, or are you entitled to any shares, options, rights, convertible
notes or other securities?
No Yes please give details
Name and address of company Number of
shares
Shareholder number Date acquired Market value
($)
See note
below
Note: Do any of the above shares have any restrictions on their sale? (Eg certain types of employee shares cannot
be sold for a specied period). If there are any sale restrictions, please write ‘R’ in the last column above.
30 Investments
Do you have any managed investments, insurance bonds, debentures or
other investments?
No Yes please give details
Investment type Date acquired Market value ($)
31 Money Owed to You
Do you have any debts owed to you? (include loans to friends and
relatives and to family trusts or private companies; do not include child
support arrears)
No Yes please give details
Name and address of person or
organisation who owes you money
Date debt was created Amount owed ($) Amount likely to be
received ($)
page 15 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART C – YOUR ASSETS - PUBLIC
32 Deceased Estate
Do you have an interest in a deceased estate? Provide a copy of the will or
letters from the executor
No Yes please give details
Name of deceased Date of death Executor name and address Estimated value of
benet ($)
33 Sale, Transfer or Gift of Assets in the last 5 years
Have you sold, transferred or given away any assets worth more than $1000
in the last 5 years? Provide a copy of the receipt or settlement statement
No Yes please give details
What did you sell,
transfer or give away?
To whom was it sold,
transferred or gifted?
Date transferred What was it
worth?
How much
was it sold
for? ($)
How much did
you receive
net? ($)
34 Assets you own which are in somebody else’s possession
Do you own any assets which are not currently in your possession?
No Yes please give details
Description of asset Who has the asset? Name and address What is it worth? ($)
35 Assets you contributed towards or helped purchase
Have you contributed or otherwise assisted in the purchase or improvement
of any asset valued over $1000 which is held by someone else?
No Yes please give details
Description of asset Name and address of person who has the asset What is it worth? ($)
page 16 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART C – YOUR ASSETS - PUBLIC
36 Assets/Money Paid to Creditors
As a result of pressure for payment from creditors have you, in the last
12 months, paid a total amount of more than $1000 over and above your
normal repayments or surrendered any assets to a creditor?
No Yes please give details
Date paid/surrendered Type of asset (eg cash/house) Value of asset ($) Name of creditor
37 Other Items of Value
Other than your general household furniture, do you own any other assets
or items of value? (eg jewellery, camera, artworks, antiques, copyrights)
No Yes please give details
Description of asset Location of asset Estimated
resale value ($)
Jointly owned
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
Please attach a list if you have more assets
page 17 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART D – YOUR LIABILITIES - PUBLIC
PART D – YOUR LIABILITIES - PUBLIC
38 Secured Creditors
List your secured creditors. (Creditors who are not secured should be listed at Q40)
A secured creditor is a creditor who can repossess and sell your asset/s if you fall behind with your payments. For
example, a mortgage over your house, a hire purchase/lease agreement over your vehicle, a chattel mortgage or a
bill of sale over your business assets.
Secured creditor no. 1 Secured creditor no. 2 Secured creditor no. 3
Creditor’s name
Creditor’s postal address
Account/loan number
Total amount owing to this
creditor ($)
Type of security (eg
mortgage)
Date the security was given
Description of secured
asset
Location of asset
Estimated resale value of
the asset ($)
Is it a joint loan?
No Yes No Yes No Yes
Are repayments up to
date?
No Yes No Yes No Yes
Has the creditor
repossessed the asset?
No Yes No Yes No Yes
Related creditor
No Yes No Yes No Yes
Related creditors - If you are unsure whether a creditor is related, please refer to the information sheet
accompanying this form before answering this question. Related creditors must be disclosed by selecting Yes or No.
39 Equity Loan
Have you used any equity or made any additional loan withdrawals against
any of the above secured property in the last 12 months?
No Yes please give details
Date Amount withdrawn ($)
page 18 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART D – YOUR LIABILITIES - PUBLIC
Please copy this page if you have more than 10 unsecured creditors.
40 Unsecured Creditors
An unsecured creditor is a creditor who does not hold security over any particular asset you own. They can include
credit cards, unpaid bills, loans from friends and relatives, personal guarantees and contingent debts. List all debts
that have not already been listed as secured at Q38.
Related creditors If you are unsure whether a creditor is related, please refer to the instructions for completing these
forms in the front of this booklet before answering this question. Related creditors must be disclosed by ticking the yes
or no box.
Joint debts: if the debt is owed jointly with another person you must disclose this by indicating Yes or No
Tax debts: if you owe a debt to the Australian Taxation Ofce, when listing this debt below please do not enter your tax
le number (TFN) in the account number column.
Creditor name
and address
Nature of
debt
Account
number
Mth/Yr
incurred
Total amount
owing ($)
Related party? Joint debt?
No Yes No Yes
No Yes No Yes
No Yes No Yes
No Yes No Yes
No Yes No Yes
No Yes No Yes
No Yes No Yes
No Yes No Yes
No Yes No Yes
No Yes No Yes
Total
Note: certain creditors can continue recovery action during bankruptcy and you may not be released from debts such
as child support, maintenance and debts incurred by fraud.
page 19 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART E – BUSINESS DETAILS - PUBLIC
PART E – BUSINESS DETAILS - PUBLIC
41 Sole Trader/Partnership
Have you been in business as a sole trader or
in partnership at any time in the last 5 years?
No Go to Q43 Yes please give details
If you have operated more than one business please copy this section, complete and attach.
Business name Business address
41A Is the business registered with the Australian Taxation Ofce for GST payments? No Yes
41B Is the GST registration on a cash or accrual basis? Cash Accrual
41C Do you have an Australian Business Number? No Yes Number
What is the nature of this business?
Partner’s name and address (if any)?
Second partner’s name and address (if any)?
41D Is there a written partnership agreement? No Yes attach copy
41E When did the business start operating? Date
41F Has the business ceased operating? No Yes Date ceased
41G
Have you sold any business assets or have you sold the business as
a going concern in the past 2 years? No Yes
please give
details
Business name/asset description Date sold Name of purchaser Amt received ($)
41H Are there any other business assets not sold?
No Yes please give details
Type of asset Resale value ($) Location of assets
Stock
Plant and equipment
Fixtures and ttings
Licences
Bank accounts
Book debts
Other (please describe) below
41I
Did your business cease operating more than
6 months ago?
No - you must answer Q42
before moving on to Q43
Yes - go to Q43
page 20 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART E – BUSINESS DETAILS - PUBLIC
42 Sole Trader/Partnership – Operating or Ceased in past 6 months
42A Is any stock on consignment or subject to retention of title?
No Yes
42B Is there a bill of sale or other security over business assets? No Yes attach copy of the bill of sale
42C Do you have a lease agreement over your business premises? No Yes please give details
Landlord name
Landlord address
Period of lease
to
42D Have you sold or tried to sell the business? No Yes please give details
Agent name
Agent address
Asking price ($)
42E Who has your business records?
Name Telephone number
Address
42F Who prepares the nancial statements and tax returns?
Name Telephone number
Address
Attach copies of the last available nancial statements
page 21 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART E – BUSINESS DETAILS - PUBLIC
43 Companies
43A Have you been a director or had a management role
in a company at any time in the last 5 years?
No - Go to Q 44 Yes - please give details
If you have operated more than one company please copy this section, complete and attach.
Company name
ABN
Registered address
Trading name
Nature of company activity
Is this a trustee company? If yes, what is the name of the trust?
Ofceholder positions held by you in the last 2 years
Director Date resigned
Secretary Date resigned
43B Has a liquidator, receiver or administrator been appointed to manage
the company? No Yes please give details
Name
Address
43C Is a dividend or distribution expected? No Yes please give details
43D Does the company owe you any wages, loans or any other money? No Yes please give details
Description Amount owed ($)
43E Do you own, or have you at any time during the last
5 years owned any shares in this company? No Yes please give details
No. of shares Date sold Transferee name and address Sale proceeds ($)
page 22 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART E – BUSINESS DETAILS - PUBLIC
43F Have you transferred any assets to the company in the
last 5 years? No Yes please give details
Description of asset
Date of transfer Value of asset ($) Money you received ($)
43G Who prepares the nancial statements and tax returns?
Name Telephone number
Address
Attach a copy of the last available nancial statements
44 Trusts
44A Have you been a unit holder in or beneciary of a trust in the last 5 years; OR
44B Have you transferred any assets to a trust in the last 5 years?
No Yes please give details
If you have been involved in more than one trust please copy this section, complete and attach.
Trust name
Principal activity Type of trust
Unit Discretionary Other
Trustee name
Trustee address
44C Are there any assets owned by the trust? No Yes please give details
Asset description Resale value ($)
44D Does the trust owe you any wages, loans or other money? No Yes please give details
Description Amount owed ($)
page 23 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
PART E – BUSINESS DETAILS - PUBLIC
44E Have you received any income or capital distribution from
this trust in the last 2 years? No Yes please give details
How often do you receive a distribution Date of last payment Amount of last payment ($)
44F Have you transferred any assets to the trust in the last 5 years? No Yes please give details
Description of asset Date of
transfer
Value of asset
($)
Money you received
($)
44G Name and address of the person holding the trust deed, books of account and nancial statements.
Name Telephone number
Address
Email address
Attach a copy of the last available nancial statements
page 24 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
DECLARATION
DECLARATION
Note: S267(2) of the Bankruptcy Act provides that a person must not make a declaration that the person knows to be
false. Penalty: Imprisonment for 12 months.
I declare that the particulars set out in this statement are correct.
Signature Date (DD/MM/YYYY)
If you received assistance completing this form, the person providing the assistance should sign the statement below.
I declare that before this form was completed, I carefully read to/interpreted for the person named above the
prescribed informatio and the questions on this form or [where the person is physically incapacitated] satised myself
that the person had read and understood the information and questions. The responses provided in this form are
those of the person named above.
Reason the debtor required your assistance
Full name and address of the person assisting
Signature of the person assisting Date (DD/MM/YYYY)
page 25 of 25www.afsa.gov.au - 1300 364 7853(SOA)(P)032014
CHECKLIST FOR STATEMENT OF AFFAIRS
CHECKLIST FOR STATEMENT OF AFFAIRS
Have you answered every question in Parts A, B, C, D and E. Part E must be completed if you have been
involved in a business/ company/ trust in the last 5 years.
Have you attached all documentation you have been asked to provide.
Document checklist
Question Document required
5 Child support Child Support Agreement/Assessment Notice
6 Family law nancial proceedings Family law or spousal maintenance order or application
7 Legal actions Summons, writ or other documents
8 Proceeds of crime Court order or application
9 Income Payslip/Tax Assessment Notice/Centrelink Statement of Benet *
32 Deceased estate Copy of the will
33 Sale, transfer or gift of assets Property settlement statement
41D Sole trader/partnership Partnership Agreement
42B Security over business assets Bill of sale or other security document/agreement
42F Sole trader/partnership Last available nancial statements
43G Companies Last available nancial statements
44G Trusts Last available nancial statements
* Documents in support of income: please ensure that any document you attach in support of your income does
not display your tax le number (TFN). Where you are attaching your Tax Assessment Notice or any other
document that contains your TFN, please ensure that TFN data is erased or ‘blacked out’
so that the TFN is
not visible.
Supporting better outcomes for consumers, business and the community.
www.afsa.gov.au
Page 1 of 30
Personal insolvency information
for debtors
This publication is designed for people who may be nding their level of debt unmanageable and are contemplating
bankruptcy or any of the formal options available under the Bankruptcy Act.
All the information contained in this publication and the required forms can also be found on AFSA’s website
www.afsa.gov.au.
All of the formal options to deal with unmanageable debt (eg bankruptcy) outlined in this publication have serious
consequences. It is recommended that you investigate all options available to you, including negotiating directly with your
creditors, prior to entering any formal arrangement such as bankruptcy.
Privacy: If you choose to enter into a personal insolvency arrangement, you will need to complete forms that require the
provision of “personal information” (as dened by the Privacy Act 1988). This information is collected under, and for the
purpose of, the Bankruptcy Act 1966 or related legislation.
September 2
017
Contents
Your options for dealing with unmanageable debt 2
Informal options
2
- Formal options 2
Formal options to deal with unmanageable debt
3
- Suspension of creditor enforcement by presenting a
declaration of intention (DOI) to present a debtors petition option 3
- Debt agreement 4
- Personal insolvency agreement 6
- Bankruptcy 8
Essential bankruptcy information
11
- Part A: Assets 11
- Part B: Your employment and income 12
- Part C: Debts and creditors 14
- Part D: Overseas travel 15
- Part E: When your bankruptcy ends 16
- Part F: Annulment 17
- Part G: Fees and Charges 18
Fees and charges
19
Quick comparison of features between dierent types of personal insolvency administrations
21
Notes
24
Glossary
25
P(PersInsolvInfoForDebt)
09
2017
Page 2 of 30
Your options for dealing with
unmanageable debt
Being unable to manage your debts can be caused by various reasons, some of which may be beyond your control.
For instance, sudden unemployment, ill health or breakdowns in family relationships are often the causes that trigger
nancial hardship.
It is important to recognise nancial diculty early so that you can address the situation before it becomes
unmanageable. If you are having trouble managing your debts there are actions you can consider before turning to the
formal arrangements oered by the Bankruptcy Act.
Getting help
Financial counsellors help people in nancial diculty, and are available in every state and territory. Their services are
free, independent and condential. You can talk to a nancial counsellor from anywhere in Australia by phoning
1800 007 007 (minimum opening hours are 9.30 am – 4.30 pm Monday to Friday). This number will automatically direct
your call through to a nancial counselling service in the state or territory closest to you.
Contact information for registered trustees and debt agreement administrators is also available on our website
(www.afsa.gov.au) or by contacting us on 1300 364 785.
Need help with interpreting?
If you want to talk to AFSA but do not speak English, call the Translating and Interpreting Service on 131 450.
Informal options
You should read “Dealing with debt: Your rights and responsibilities”. This is a government publication which gives you
information on dealing with debts, debt collectors and disputes. This publication is available through the Australian
Securities and Investments Commission (ASIC) www.asic.gov.au or phone 1300 300 630 or the Australian Competition
and Consumer Commission (ACCC) www.accc.gov.au or phone 1300 302 502.
One way of dealing with unmanageable debt is to approach your creditors (the people you owe money to). In some
circumstances, creditors may give you more time to pay, agree to renegotiate repayments or accept a smaller payment
to settle the debt. You can contact your creditors directly or you can ask for help from a nancial counselling service, a
community legal centre, a registered trustee, a registered debt agreement administrator, a lawyer or an accountant. They
will talk to you about your options and may speak to creditors on your behalf, help with budgeting advice or give you
advice about other sources of government assistance.
Formal options
The Bankruptcy Act provides four formal options to deal with unmanageable debt. The legislation sets out what you and
your creditors can and cannot do under each of these arrangements. More detail regarding each formal option can be
found in this booklet at “Formal options to deal with unmanageable debt” from page 3.
Note: The consequences of entering into a formal arrangement are serious. All formal arrangements will affect
your credit rating. It is your responsibility to read and understand the information contained in this publication
before you decide to enter one of these arrangements.
Choosing the right option
Every person’s circumstances are dierent. An option that suits one person may not suit another. In making your
decision, it is important to be realistic about your current situation as well as what you expect to happen in the future.
For instance, if you are thinking about asking your creditors for more time to pay your debts, or to pay by instalments,
then you should make sure that this is something you will denitely be able to aord. If not, you may want to think about
other more formal options.
The following pages provide more detailed information about the formal options that may be available to you. A
comparison of the various options is also provided on page 21. If you have any questions regarding any of these
options, please call us on 1300 364 785 or visit our website at www.afsa.gov.au.
AFSA does not provide advice about which option is best suited to your particular circumstances. You are encouraged to
seek independent advice before making a decision. Refer to the '
Getting help' section on this page for how to contact a
nancial counsellor in your area for help and advice.
Page 3 of 30
Formal options to deal with
unmanageable debt
Suspension of creditor enforcement by presenting a declaration of
intention (DOI) to present a debtor’s petition option
If you have unmanageable debt and need time to consider your options, you may apply for temporary protection from
enforcement action by your unsecured creditors by lodging a DOI.
This temporary relief allows you to negotiate payment arrangements with creditors or, alternatively, consider a formal
insolvency administration (debt agreement, personal insolvency agreement or bankruptcy) that may be suited to your
circumstances.
What is a DOI?
A DOI is an option under the Bankruptcy Act that provides temporary relief to allow you up to 21 days to decide whether
to proceed with bankruptcy or another option. During the 21-day period, unsecured creditors cannot take any action
to recover debts, including recovering money or seizing unsecured assets. In this time you can consider your nancial
circumstances, negotiate with your creditors and, where possible, make suitable arrangements to avoid entering a formal
option under the Bankruptcy Act.
What happens if I lodge a DOI?
A DOI is not recorded on the National Personal Insolvency Index (public electronic register of all personal insolvencies).
Your creditors are notied of the stay on enforcement action and provided with a copy of your nancial aairs. You do
not automatically become bankrupt after the 21 day stay period, however, if you have not come to a suitable arrangement
with your creditors and you do not voluntarily apply to become bankrupt, your creditors can choose to apply to the court
to make you bankrupt.
Who can lodge a DOI?
You may lodge a DOI if:
you have not applied for a DOI in the last 12 months
you have not signed a controlling trustee authority within the preceding six months (ie proposed a personal
insolvency agreement to your creditors)
you are not currently under a debt agreement, personal insolvency agreement or the subject of a current controlling
trustee authority
a creditor has not already petitioned for you to be made bankrupt
you have a residential or business connection to Australia (ie you are living in Australia or conduct business in
Australia).
What are the eects of a DOI?
Generally, your unsecured creditors cannot continue with any enforcement action for 21 days. Some unsecured creditors
are not bound by this stay period and they may continue recovery action (eg child support debts, court imposed nes/
penalties and HELP debts). Secured creditors are also not bound by this stay period (eg if your car or house mortgagee
has initiated repossession proceedings, they may continue to do so).
The 21-day period can end earlier if:
a creditor petitions the court to make you bankrupt and/or the court makes you bankrupt during this period
you sign a controlling trustee authority (ie propose a personal insolvency agreement) during this period
you voluntarily apply to become bankrupt during this period.
Fees and charges
There is no fee to submit a DOI application.
Further information can be obtained by:
contacting us on 1300 364 785
visiting www.afsa.gov.au
discussing your financial affairs with a financial counsellor.
Page 4 of 30
Debt agreement
A debt agreement is a binding agreement between you and your creditors where creditors agree to accept a sum of money
that you can aord. Your repayments are based on your capacity to pay having regard to your income and all of your
household expenses.
What is a debt agreement?
A debt agreement is a formal option to help you deal with unmanageable debt.
You will be released from your debts when
you complete all payments and obligations under the agreement. A debt agreement may provide for:
weekly or monthly payments from your income
deferral of payments for an agreed period
the sale of an asset to pay creditors
a lump sum payment to be divided among creditors.
Who can propose a debt agreement?
You can lodge a debt agreement proposal if you:
are insolvent (this means you are unable to pay your debts as and when they fall due)
have not been bankrupt, had a debt agreement or appointed a controlling trustee under the Bankruptcy Act in the
last 10 years
have unsecured debts, assets and after-tax income for the next 12 months all less than set limits. Limits are
provided on the Indexed Amounts information in this pack, or can be found on our website www.afsa.gov.au.
What happens when you propose a debt agreement?
your name and other details appear on the National Personal Insolvency Index (NPII), a public record, for the
proposal and any debt agreement
your ability to obtain further credit will be affected. Details of the debt agreement will also appear on a credit
reporting organisation’s records for up to five years - or longer in some circumstances
during the voting period creditors cannot take debt recovery action or enforce action against you or your property;
and must suspend deductions by garnishee on your income.
What are the eects of entering a debt agreement?
all unsecured creditors are bound by the debt agreement and are paid in proportion to their debts
you are released from most unsecured debts when you complete all your obligations and payments
secured creditors may seize and sell any assets (eg a house) which you have offered as security for credit if you are
in default
creditors cannot take any action against you or your property to collect their debts
the agreement does not release another person from a debt jointly owed with you.
What is the procedure?
Stage 1: Information
You must read and sign the prescribed information page regarding the consequences of bankruptcy, debt
agreements and other alternatives. This is available from www.afsa.gov.au or phone 1300 364 785.
Stage 2: Appointing an administrator
If, after considering all your options, you decide that a debt agreement is the best option, you must decide if you
are going to appoint an administrator. Most administrators are registered debt agreement administrators, but non
registered administrators are also available. Contact details for debt agreement administrators can be obtained by
contacting AFSA on 1300 364 785.
The services provided by an administrator attract a fee. The administrator can initially help you by providing
information about all of your available options, working out a budget and talking to your creditors.
Once you have appointed an administrator, they will determine if you are insolvent and the extent of your
unmanageable debt. They will also help you to prepare a debt agreement proposal that takes into account what you
can aord to pay creditors and will assist with the completion of the correct forms.
You and/or your administrator will need to complete and lodge three forms with AFSA:
A debt agreement proposal -
this outlines what your proposal is to your creditors.
An explanatory statement - informs the creditors about your income, expenses, assets and debts, personal
circumstances, household expenses and the reasons behind your financial difficulty.
A statement of affairs - this outlines in detail your personal information and circumstances. The completed form is
not sent to creditors and is not a public document.
Page 5 of 30
Stage 3: Proposal is lodged with AFSA
The debt agreement proposal must be completed and lodged with AFSA within 14 days of being signed by the
debtor.
A certicate signed by the administrator must accompany all debt agreement proposals lodged by an administrator.
The certicate states that the administrator:
has given you the prescribed information about bankruptcy, debt agreements and other options
believes you can afford to make the payments promised in your debt agreement proposal; and
believes you have properly disclosed your affairs to creditors.
If you are self-administering you do not have to supply a certicate but must provide AFSA with a signed copy of the
prescribed information when lodging the proposal.
All of these forms, including the prescribed information, can be found on www.afsa.gov.au or can be provided to you
by calling our National Service Centre on 1300 364 785.
Stage 4: AFSA sends proposal to creditors to assess and vote on
When the forms are lodged with AFSA, a number of checks are conducted to ensure that the debt agreement
proposal satises the eligibility criteria. If the proposal is accepted by AFSA for processing, it is recorded on the
National Personal Insolvency Index (NPII).
Each creditor is sent a report (completed by AFSA), copies of the debt agreement proposal and explanatory
statement, a statement of claim and a voting form. Creditors are asked to vote on the proposal by returning the
statement of claim and voting form by a nominated date. Any questions by creditors are referred to the debt
agreement administrator, if applicable. Creditors may vote yes, no or may abstain and by lodging a completed voting
form, provide details of the claim for dividend purposes. The voting period is generally ve weeks.
Stage 5: AFSA checks and counts the votes
After the votes are due, AFSA will review the creditors’ votes. For a debt agreement proposal to be accepted, AFSA
must receive “yes” votes from a majority in value of the creditors who vote.
If the proposal is accepted by a majority in value of creditors who vote:
the proposal becomes a debt agreement
AFSA updates the NPII to show that you have entered a debt agreement.
If the proposal is rejected by a majority of creditors in value who vote or if no creditors vote:
the voting outcome is recorded on the NPII
creditors can commence or continue with action to recover their debts.
If the proposal is withdrawn by you or cancelled by AFSA:
AFSA updates the NPII with this result
creditors can commence or continue with action to recover their debts in these cases.
Stage 6: If a debt agreement proposal is accepted
If the debt agreement proposal is accepted by creditors, you must comply with the agreement and ensure it is completed
by the completion date listed on the proposal. If you have problems making payments during the debt agreement, you
should talk to your administrator as soon as possible.
The debt agreement administrator is responsible for:
collecting payments from the debtor
keeping creditors and debtors informed
paying dividends to creditors
telling AFSA when the debt agreement is completed.
Fees and charges
A fee* is payable to AFSA on lodgment of a debt agreement proposal. Debt agreement administrators and other advisors
may also charge a fee for providing information and preparing debt agreement forms.
Funds received by an administrator
are subject to a realisations charge* (a government levy) which is paid by the administrator directly to the government.
Any interest earned on funds realised by a registered debt agreementadministrator is payable to the government.
*For current information see ‘Fees and charges’ on page 19 or visit our website at www.afsa.gov.au
Page 6 of 30
Frequently asked questions
Can I change my debt agreement if my circumstances change?
You can request to change your debt agreement by lodging a variation
proposal if your circumstances have
changed.
A termination proposal may be lodged by you (as the debtor) or a creditor if the terms of the debt agreement
are not being carried out. Creditors vote on a proposal to vary or terminate in the same way as they vote on the
original proposal. If it is not accepted by creditors, the terms of the debt agreement remain in force. You (as the
debtor), a creditor or AFSA may apply to the court for an order to terminate a debt agreement.
The agreement is automatically terminated
if:
you have not made any payments for six months after a payment is due or
you do not complete the payments within six months of the completion date of the agreement.
The eects of terminating a debt agreement include:
creditors can commence or recommence recovery action against you
the termination of the debt agreement is registered on the NPII
creditors may apply for an order that you be made bankrupt.
When does a debt agreement end?
A debt agreement ends when:
you have completed all your obligations and payments or
the court orders the debt agreement be terminated or declared void or
the debt agreement is terminated by creditors.
Further information can be obtained by:
talking to your debt agreement administrator
contacting us on 1300 364 785
seeking independent advice from an accountant or solicitor
discussing your financial affairs with a financial counsellor.
Personal insolvency agreement
A personal insolvency agreement (PIA) is a formal option available to help you deal with unmanageable debt. A PIA is a
exible way for you to come to an arrangement with creditors to settle your debts without being bankrupt.
What is a PIA?
A PIA may involve one or more of the following, which will result in creditors being paid in part or in full:
a lump sum payment to creditors either from your own money or money from third parties (eg family or friends)
transfer of assets to creditors or the payment of the sale proceeds of assets to creditors and/or
a payment arrangement with creditors (this could include deferral of repayments).
Who can propose a PIA?
You can propose a PIA under the following circumstances:
you must be insolvent (this means to be unable to pay your debts as and when they fall due)
you must be in Australia or have an Australian connection (eg you usually live in Australia or carry on business in
Australia).
What are the eects of a PIA?
When you appoint a controlling trustee, you commit an ‘act of bankruptcy’. A creditor can use this to apply to court
to make you bankrupt.
Even if your attempt to set up a PIA fails, the appointment of a controlling trustee and the setting up of a PIA will
still be recorded on the NPII forever.
Y
our details will also appear on a record held by a credit reporting organisation for up to five years - or longer in
some circumstances.
Once you have executed a PIA, you are automatically disqualified from managing a corporation until the terms of the
PIA have been complied with.
Page 7 of 30
What is the procedure?
You appoint a controlling trustee to take control of your property and put forward a proposal to your creditors. Only a
registered trustee, AFSA or a suitably qualied solicitor can act as a controlling trustee.
The controlling trustee examines the proposal, makes enquiries into your nancial aairs and reports to creditors. The
report will advise creditors of the amount they can expect from the proposal compared to the amount they could expect if
you became bankrupt, and make a recommendation whether it is in creditors’ interests to accept the proposal.
A creditors’ meeting must be held. This creditors’ meeting is advertised on AFSA’s website. If unable to attend, a creditor
can be represented by a proxy or attorney, or participate by telephone if facilities are available.
You must attend the meeting unless excused by the controlling trustee. At the creditors’ meeting, creditors consider and
vote on the proposal. The creditors may ask you questions before deciding how to vote. Acceptance requires a ‘yes’ vote
from a majority of creditors who represent at least 75% of the dollar value of the voting creditors’ debts (referred to as a
‘s
pecial resolution’).
If the proposal is accepted the creditors are bound by the terms of the PIA. Secured creditors’ rights in relation to dealing
with their security are not affected by a PIA. A trustee (who may be different from the controlling trustee but must be either
a registered trustee or AFSA) is appointed to administer the agreement.
If the proposal is rejected creditors will either:
vote in favour of you becoming bankrupt (you do not have to follow the creditors’ decision but a creditor may start
bankruptcy proceedings if you do not voluntarily become bankrupt), or leave it up to you to decide how to resolve
your financial difculties.
If the proposal is rejected or lapses, you cannot appoint another controlling trustee for six months without the
permission of the court.
Fees and charges
There is a fee* payable to AFSA when lodging a controlling trustee authority form. In addition to this, a controlling
trustee and PIA administrator will charge fees for examining your PIA proposal, investigating your nancial aairs,
preparing a report to creditors and holding the creditors’ meeting.
All funds realised by a trustee in an administration are subject to a realisations charge* which is paid by the trustee
directly to the government. Any interest earned on funds realised by the trustee is also payable to the government.
If you have executed a controlling trustee authority or a PIA and think the fees claimed by the controlling or PIA trustee
are too high or otherwise unreasonable, you may request that the Inspector-General in Bankruptcy reviews the trustee’s
fees. Note that certain conditions must be met before the Inspector-General will conduct a review.
*For current information see ‘Fees and charges’ on page 19 or visit our website at www.afsa.gov.au
Frequently asked questions
Can I change or end my PIA if my circumstances change?
You can make a written request to your trustee to vary the terms of the PIA. The trustee sends a notice of the
proposed variation to the creditors and, if none object in writing, the terms will be varied. If a creditor objects, a
creditors meeting can be called to consider the proposed variation.
Creditors, with the debtors written consent, can vary the terms of a PIA by passing a special resolution.
A PIA can also be terminated by a resolution of the creditors where the trustee is satised that you are not
complying with their obligations.
The court can set aside or terminate a PIA in certain circumstances.
When does a PIA come to an end?
Generally, a PIA will end when all the obligations that the PIA has created have been discharged. This will
usually be when the trustee has paid the nal dividend to creditors. You may request a certicate stating that all
the obligations under the PIA have been discharged from your trustee.
Further information can be obtained by:
talking to your controlling trustee or registered trustee
contacting us on 1300 364 785
seeking independent advice from an accountant or solicitor
discussing your financial affairs with a financial counsellor.
Page 8 of 30
Bankruptcy
There are two ways you can become bankrupt:
1. presenting your debtor’s petition, referred to as voluntary bankruptcy or
2. a creditor (someone you owe money to) makes an application to court to make you bankrupt, referred to as
involu
ntary bankruptcy.
Voluntary bankruptcy
If you are unable to pay your debts and cannot come to suitable repayment arrangements with your creditors, you may
choose to voluntarily lodge a petition to become bankrupt (called a d
ebtors p
etition).
During and after your bankruptcy, you will face certain restrictions and have obligations placed upon you. You should
read the information in this publication and seek clarication from a nancial counsellor or contact us if anything is
unclear.
If you decide to proceed, you will need to complete and lodge a debtor’s petition and a statement of aairs with AFSA
within 28 days of signing the forms. Generally, debtor’s petition and statement of aairs forms are processed within a
24-48 hour period. When the forms are accepted by AFSA you become bankrupt. You will receive a letter containing
your bankruptcy number and outlining your duties and obligations whilst bankrupt. Please use your bankruptcy number
whenever you contact your trustee.
You should carefully read the section ‘Essential bankruptcy information’ which outlines what will happen to your assets,
income etc after bankruptcy.
The consequences of bankruptcy are serious and your bankruptcy cannot be cancelled if you change your mind.
Involuntary bankruptcy – when a creditor makes you bankrupt
If you are unable to pay your debts and have been unable to enter into an arrangement with your creditors and you haven’t
voluntarily made yourself bankrupt, a creditor to whom you owe $5,000 or more may apply to the court to have you made
bankrupt.
Generally, the process for making you bankrupt begins when a creditor applies for a bankruptcy notice, and serves it on
you demanding that you pay the money owed to the creditor within 21 days. A notice can only be issued if the creditor
has obtained a court judgment against you within the last six years and the total amount owing under the judgment (or two
judgments combined) is $5,000 or more.
If you do not pay the creditor by the time given in the notice, you commit an 'act of bankruptcy'. A creditor can then apply to
the court (called a creditor’s petition) to have you made bankrupt. The court gives you the opportunity to be heard before
making the order.
If after hearing the creditor’s case and any submissions you make, the court is satised that you have not paid the
creditor, the court makes an order (called a sequestration order) making you bankrupt. A trustee is appointed and you are
then required to file a statement of affairs with AFSA within 14 days of being notied of the order.
Failure to lodge your statement of affairs is an offence under the Bankruptcy Act and you could be prosecuted.
Note: the information provided above is regarding the general process followed by most creditors to make someone
bankrupt. If a creditor is currently taking steps to make you bankrupt and you wish to avoid bankruptcy, or if you dispute
the creditors claim(s), it is important that you seek independent legal advice.
You should carefully read the section ‘Essential bankruptcy information’ which outlines what will happen to your assets,
income, etc after bankruptcy.
Frequently asked questions
Can my application to voluntarily become bankrupt be rejected?
Yes. There are a number of circumstances which may result in your petition for bankruptcy being rejected. Your
petition may not be accepted if it appears from the information that is lodged with the petition that you are likely
to be able to pay the debts, AND you are either avoiding payment of a particular debt(s), OR have been bankrupt
previously.
Am I eligible to present a debtor’s petition?
A debtor is eligible to present a debtor’s petition for bankruptcy if they are in Australia or have an Australian
connection (eg the debtor does not usually live in Australia nor does the debtor carry on business in Australia).
Page 9 of 30
Is there a minimum amount I need to owe before I can go bankrupt?
No. you can become bankrupt voluntarily owing any amount. However, AFSA can reject your request to
become bankrupt under certain circumstances.
A creditor has made me bankrupt – what happens now?
If a creditor has made you bankrupt, you should make contact with your trustee without delay. If you are
unsure who your trustee is, contact AFSA and quote the court reference number that is on the sequestration
order. Your trustee will be able to provide you with information and will be able to answer your questions
about bankruptcy. You must cooperate with your trustee and provide information upon request. Failure to
cooperate with your trustee is an oence under the Bankruptcy Act.
You must complete and le a statement of aairs form within 14 days of being notied of your bankruptcy.
Is there a dierence between an involuntary and a voluntary bankruptcy?
The outcome and consequences are the same for someone who voluntarily petitions for bankruptcy and
someone who is made bankrupt by a creditor. The one exception is that a person made bankrupt by a court
order must le a statement of aairs within 14 days of being notied of their bankruptcy – and they are not
released from bankruptcy if they do not le their statement of aairs.
What are the consequences of bankruptcy?
1. Your assets may be sold
You will be able to keep ordinary household goods, tools (up to a certain value)* used to earn an income and a
vehicle (up to a certain value)* but other assets – including your house – can be sold by your trustee. You cannot
conceal, remove or dispose of any property inside or outside Australia. If you do, you may be subject to criminal
prosecution.
2. Your income, employment and business may be affected
If your income exceeds a certain limit* you may be required to make contributions from your income. You
cannot be a director of and/or manage a company. Some professional/licensing bodies may restrict or prevent
you from continuing in that trade or profession. You may not be able to hold certain public positions. If you are
in business and trade under a business name dierent to your own, you must tell everyone you deal with that
you are bankrupt. If you don’t, you may be subject to criminal prosecution. Whilst you are bankrupt you will be
prohibited from managing a company, without the permission of a court.
3. You may not be released from all debts
You are released from most of your unsecured debts (eg credit cards, personal loans, store cards) once you are
discharged from bankruptcy. Some types of debts are not covered by bankruptcy e.g. penalties, nes and child
support debts – you will have to continue to pay these. Further, if a debt that is covered by the bankruptcy is
found to have been incurred by fraud, then you will still owe the balance remaining upon discharge. If a debt is
secured against an asset (eg a mortgage on a house or car) and you do not maintain repayments, that creditor
can repossess and sell the asset; however any shortfall between the mortgage amount and the sale price will be
covered by your bankruptcy.
4. Your ability to travel overseas will be affected
You will not be able to travel overseas without the written permission of the trustee and you may be asked to
surrender your passport to the trustee. If your bankruptcy is administered by the Ocial Trustee, you will be
required to pay an overseas travel application fee.
5. Your name will appear on the National Personal Insolvency Index (NPII) forever
The NPII is a searchable public register. Credit reporting organisations will keep a record of your bankruptcy for
up to ve years - or longer in some circumstances.
6. Your ability to obtain future credit will be affected
You may nd it hard to borrow money and buy things on credit. You may nd it hard to rent, get electricity,
water or the telephone connected without paying a bond. Some banks may not let you operate an account or may
restrict how you can use your account. If you obtain credit above a certain amount* you must tell the supplier
that you are bankrupt.
* Limits are provided on the Indexed Amounts information enclosed with this pack or can be found on our
website www.afsa.gov.au.
Page 10 of 30
What is the role of a trustee?
A trustee is appointed to administer the bankruptcy. The duties of a trustee are specied in legislation and
trustees have to adhere to certain standards while administering your estate. In order to pay creditors, your
trustee will:
sell your assets, including those you acquire or become entitled to during your bankruptcy (although you will
be able to keep certain types of assets)
recover any income you earn over a certain limit
investigate your financial affairs and may, in certain circumstances, recover property that you have
transferred to someone else prior to your bankruptcy.
You can choose to appoint a registered trustee by obtaining and providing their consent when you lodge your
petition to become bankrupt. If you do not choose a trustee, AFSA becomes your trustee and may arrange for
a registered trustee to be appointed. Otherwise, AFSA is initially appointed to administer your estate. Your
creditors may choose to change the trustee at any time.
If you are made bankrupt involuntarily, the court will appoint a trustee at the time of making the sequestration
order. Regardless of whether you have been made bankrupt voluntarily (debtor’s petition) or involuntarily
(sequestration order) the section ‘Essential bankruptcy information’ is relevant to you if you are bankrupt.
Further information can be obtained by:
contacting us on 1300 364 785
talking to your trustee
discussing your financial affairs with a financial counsellor.
Page 11 of 30
Essential bankruptcy information
Part A: Assets
What will happen to my assets in bankruptcy?
When you become bankrupt, a trustee is appointed to administer your bankruptcy and this may include selling certain
assets for the benet of your creditors (the people you owe money to). Assets are anything of value you own at the time of
becoming bankrupt, and anything you buy or receive or become entitled to during your bankruptcy.
What assets may I keep?
The Bankruptcy Act allows bankrupts to keep certain assets. These include:
most ordinary household items
tools used to earn an income up to a certain limit*
vehicles (eg cars or motorbikes) where the total value of the vehicles minus the sum owing under finance is no more
than a certain limit*
most balances in regulated superannuation funds and payments from regulated superannuation funds received on
or after your date of bankruptcy (superannuation payments received before you go bankrupt are not protected)
life insurance policies for you or your spouse, and the proceeds from these policies received after your bankruptcy
compensation for a personal injury, such as an injury to you from a car accident or workers’ compensation (whether
received before or after the date of bankruptcy), and assets bought wholly or substantially with such compensation
assets held by you in trust for another person (for example, a child’s bank account)
if creditors agree, awards of a sporting, cultural, military or academic nature made to you, such as medals or
trophies, and claimed as having sentimental value.
What assets will my trustee sell?
Apart from the assets that you are allowed to keep, your trustee may recover any asset, even if they are overseas or in
someone else’s possession. Examples can include:
houses, apartments, land, farms and business premises (including leases)
motor vehicles (other than exempt ones)
shares and other investments (including shares held in your employers business)
tax refunds for income earned before you became bankrupt
proceeds of a deceased estate where the person dies before or during your bankruptcy
lottery winnings and other competition prizes.
Assets that vest in the trustee
All of the assets that belonged to you at the start of your bankruptcy, or that you get during the bankruptcy, 'vest' in the
t
rustee (unless the property is specically exempt). This means the trustee is given the power and authority to deal with
the asset(s) and you no longer have any claim to them and no longer have any right to deal with them. The trustee has
rights to take physical possession of and control of the assets, including the right to sell them. If bankrupt, you are not
permitted to deal with property that belongs to the trustee, even if its still registered in your name.
What about assets I own with someone else?
If you have a share in an asset, for example a house that you own with your partner, your share of the asset vests in the
trustee, and the trustee can sell your share. If the co-owner is not bankrupt, the trustee may agree to sell your share to
them for market value.
What about assets I used to own?
Your trustee has powers to investigate assets you owned before your bankruptcy. If you have given away or sold assets
for less than their value prior to bankruptcy, the trustee may either recover these assets (that is, take possession of them
and deal with them) or the dierence between the true value of the asset and the amount you received for it. These types
of asset transfers are called antecedent transactions.
* Limits are provided on the Indexed Amounts information enclosed with this pack or can be found on our website
www.afsa.gov.au.
Page 12 of 30
What about secured assets?
Common examples of secured assets are:
a house subject to a mortgage with a bank
a motor vehicle subject to a bill of sale
goods under hire purchase, chattel mortgage, lease or bill of sale with a finance company
real estate subject to a charge by local councils for outstanding rates or water charges.
A secured creditor cannot take possession of an asset just because you are bankrupt. However, if you fall behind in your
payments, they can take and sell the assets (whether or not you are bankrupt) to oset the debt owed.
Legal claims you may have against someone
When you become bankrupt, most legal actions that you have commenced need to cease. Your trustee will determine
whether to take any matter(s) further and in order to make this decision may seek from you documentary evidence
regarding the legal proceedings. Other actions you believe need to be pursued will need to be brought to the attention of
and discussed with your trustee. Your trustee will make an assessment on the viability of the action or whether it is an
action you may continue with.
If your claim relates to a personal injury or wrong done to you, your spouse or a member of your family, or it relates to the
death of your spouse or a member of your family, you may be entitled to pursue that claim even after you have become
bankrupt. It is important to discuss these issues with your trustee who can provide you with further information in
relation to such actions or claims.
Assets that haven’t been dealt with before your bankruptcy ends
Your discharge from bankruptcy does not automatically return assets to you which have not yet been dealt with by your
trustee. The trustee may have been unable to sell all your assets straight away and may take several years to sell them. If
there are assets that vested in your trustee and your bankruptcy is annulled (that is, cancelled), the unsold assets will be
returned to you, together with any surplus proceeds held.
How will the trustee know what assets I have?
The trustee can get information about your assets from a variety of sources including:
your statement of affairs
asking you for information
from your creditors
from searching the Personal Property Securities Register and State/Territory land title databases
from third parties.
There are penalties for failure to disclose your assets, whether owned prior to bankruptcy or acquired during your
bankruptcy. These penalties can include extending your bankruptcy and imprisonment for up to 12 months upon
conviction. Should you acquire or become entitled to assets during your bankruptcy, you must disclose all of these to the
trustee, in writing, within 14 days or as soon as practicable.
Part B: Your employment and income
The Bankruptcy Act does not restrict you (the bankrupt) from being employed and earning an income during your
bankruptcy.
The Bankruptcy Act does not require bankrupts to disclose their bankruptcy when applying for employment. However, a
prospective employer might ask for this information or choose to search the NPII to nd out.
Many professional associations and licensing authorities have their own conditions around bankruptcy of their
members. This is not regulated by the Bankruptcy Act and is at the discretion of each body. You should conrm directly
with the organisation of which you are a member as to whether bankruptcy will aect your professional membership or
your ability to practice a particular trade.
Under the Corporations Act, bankrupts are prevented from managing corporations unless they obtain approval from
the court. The Corporations Act is administered by the Australian Securities and Investments Commission (ASIC) and
enquiries about companies should be directed to ASIC.
What happens to my income while I am bankrupt?
If your after-tax income exceeds a certain amount you will have to pay contributions from your income to your trustee.
You will be required to pay half of the amount you earn above the prescribed threshold to your trustee. Your trustee will
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