Bankruptcy Listing
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Filed under Bankruptcy
The only possible way of escaping bankruptcy listing is through proper debt management. However, for people with scarce resources, filing for bankruptcy and getting listed is the only way out. It maybe that bankruptcy remains on the credit report for as long as 10 years and decreases an individual’s creditworthiness. It also remains the only way of reviving credit when repayment is not manageable. It’s the ‘aspergill’ that delivers from one’s financial sins.
However, bankruptcy listing appears detrimental when it is used to:[br]
· Notify lenders about those who are bankrupt.
· Validate bankruptcy and act as a platform of verification for issuers and consumers.
Filing for Bankruptcy Listing
Declaring yourself bankrupt is not difficult. It requires the following steps:
Ordering the forms: Bankruptcy forms can be ordered by contacting ITSA at 02 8233 7800. Those who file for bankruptcy should know that just requesting the form does not get them on the bankruptcy listing. The form comes along with information about the requirements and the process of filing for bankruptcy.
Filling and lodging the forms: Even though the forms come with information, people are confused while filling the forms. They can contact counselors for the filing process. Information on the nearest counselors is available on 1800 808 488.
The forms should be duly filled and all the debts should be mentioned in the ‘Statement of Affairs.’
However, people filing for bankruptcy should know that it is subjected to an approval process whereby the official receiver reviews the form and inquires about the following areas:
· Would a person be able to pay the debts in a certain time?
· Is he/she purposely avoiding making payments to a certain creditor?
· Has the person been bankrupt through a debtor’s petition thrice or has he/she filed for bankruptcy in the past five years?
Debtor’s Petition: Bankruptcy Listing[br]
Consumers who owe more than $2000 can be forced into bankruptcy through a protocol as follows:
· A court judgment stating that the consumer owns more than $2000.
· A bankruptcy note that asks for the payment in a stipulated time (around 21 days) failing which a consumer can be declared bankrupt and listed.
· A creditor petition served.
· Sequestration order issued by a federal court.
Being on the bankruptcy listing through this process is considered worse than declaring bankruptcy. It is essential for consumers to stay transparent with their creditors. Rather than letting them force bankruptcy, consumers can take proactive steps to either avoid or declare bankruptcy on their own.