Personal bankruptcy declaration or debt agreement
Individuals with unmanageable personal debt can voluntarily petition for bankruptcy via AFSA.
Who must comply
Individual debtors unable to pay debts as they fall due.
What triggers it
Insolvency at the individual level.
When due
Voluntary or upon creditor's petition.
Evidence required
Statement of Affairs lodged with AFSA; income disclosure.
Max penalty
Concealment of assets or other bankruptcy offences attract criminal penalties
Summary
Bankruptcy Act 1966 governs personal insolvency. Debtor's petition (voluntary bankruptcy) or creditor's petition (forced). Discharge typically 3 years; trustee administers + may seek income contributions. Alternatives include Part IX debt agreement (less destructive) + Part X personal insolvency agreement.
Enforced by
Source legislation
Topics
Source: https://afsa.gov.au/insolvency/i-cant-pay-my-debts. Rules Mate is not a law firm. Always verify against the live regulator source before acting.