Thousands of Australians choose to go bankrupt every year. During 2018-19, there were 15,329 bankruptcies. Debt doesn’t discriminate. You can find yourself in the position of needing to go bankrupt for many reasons, such as:
- Unemployment or loss of income,
- Ill health,
- Relationship breakdown,
- Excessive use of credit,
- Adverse legal action,
- Liabilities due to guarantees, and
- Gambling.
No matter the circumstance, if you’re struggling with debt, bankruptcy provides you with the opportunity to start fresh and help you resolve your debt. Unfortunately, many businesses claim to be registered bankruptcy experts but are illegitimate and provide incorrect advice, which makes the thought of bankruptcy even worse. We understand the bankruptcy process can be confusing, so being able to trust the bankruptcy advice you receive from a professional is paramount to clearing your debts and finding financial relief.
Let us help you understand the benefits of engaging a private, Registered Bankruptcy Trustee.
What is a Registered Bankruptcy Trustee?
A Bankruptcy Trustee is a fully qualified personal insolvency practitioner who is registered with the Australian Financial Security Authority (AFSA) to administer bankrupt estates. When someone goes bankrupt or enters into a Part X (10) Personal Insolvency Agreement (PIA), their financial affairs (assets and liabilities) becomes subject to the control of an independent Bankruptcy Trustee.
There are two types of Bankruptcy Trustee:
- Official Trustee in Bankruptcy (OT) — The Official Trustee in Bankruptcy is the body corporate created under the Bankruptcy Act. The OT, through the Government body AFSA, administers bankruptcies and other personal insolvency arrangements when a private trustee or other administrator is not appointed.
- Private Trustee - A private trustee is a person who becomes registered as a Bankruptcy Trustee and is part of an organisation that is not connected with the government.
According to the Inspector-General Practice Statement 13, a Registered Bankruptcy Trustee is required to maintain the utmost professionalism, independence, impartiality, honesty and ethics in their dealings.
If you want to confirm whether a private trustee has the appropriate expertise and qualifications, you can check AFSA’s Register of Trustees. If the person you’re currently in contact with isn’t listed, then you know they are not registered and are likely not qualified to provide you with the proper advice.
Why You Should use a Private Bankruptcy Trustee
- If you are making yourself bankrupt, you have the option to choose your Bankruptcy Trustee. This provides the opportunity to:
- Discuss your situation prior to being made bankrupt,
- Understand what will be involved during the bankruptcy,
- Gain comfort in the process, and
- Make informed decisions based on the advice provided that may suit your financial needs.
- You will work with the same person who is easily contactable. You will be assigned one case manager who will have in-depth knowledge of your file. Your matter, enquiries and issues will be dealt with in a professional, easy and quick manner and you will not have to re-explain your situation.
- When dealing with the assets and income of a bankrupt, a private trustee is more likely to consider other methods of realisations, if the method presents a more beneficial outcome for creditors. This could allow some leeway for bankrupt’s when dealing with the assets and/or income contributions.
- Provided you are co-operative with the private trustee, all applications for overseas travel are made easily, at no costs and are generally approved.
- If you have large complex estates that holds a number of assets (such as properties), company dealings or your matter generally involve complex situations, engaging a private Bankruptcy Trustee will benefit you as they will have the resources, knowledge and expertise to deal with these matters in an efficient way, keeping you well informed on each matter. Generally, AFSA will transfer complex estates out to private trustees as they do not have the resources to manage these.
Why You Should Always Seek Bankruptcy Advice from a Qualified Professional
- Illegitimate bankruptcy experts who are not qualified tend to charge hundreds, if not thousands for inaccurate advice.
- Although bankruptcy is serious, it’s not life-ruining. However, exorbitant fees and amateur advice you receive from an illegitimate company may leave you stranded and confused with what to do next.
- Learning about the bankruptcy process can be complicated. You don’t need the added stress of trying to figure out if the information you’re receiving from a bankruptcy expert is correct.
Speaking to a private Registered Bankruptcy Trustee will give you the comfort of knowing what is involved including the consequences, so you can rest assured that bankruptcy is right for you. It is generally more advantageous to speak to a private Bankruptcy Trustee than doing your own research online, as you are then able to clarify any information/questions you may have.
Speak to a Registered Bankruptcy Trustee Firm Today
Revive Financial is Australia’s trusted insolvency firm. We specialise in providing debt relief solutions for Australian individuals and businesses. Our team of experts include Chartered Accountants, Registered Liquidators, Registered Bankruptcy Trustees and insolvency professionals with years of experience helping Australians get their finances back on track.
If you’re experiencing financial distress and unsure if bankruptcy is the right option for you, we can assist. Get in touch with us today for a free, no obligation consultation on 1800 534 534.