Bankruptcy & insolvency
If you can't pay your business debts, and haven't been able to reach an agreement with your creditors, then you may decide to go bankrupt.
The Insolvency and Trustee Service Australia (ITSA) is the government body responsible for the administration and regulation of the personal insolvency system in Australia.
Before you become bankrupt, you must read ITSA's Personal Insolvency Information for Debtors (PDF, 0.10MB), which gives you details of alternatives to bankruptcy and the obligations and consequences of bankruptcy.
To apply to become bankrupt you need to lodge these documents with ITSA:
- a debtors petition
- a statement of financial affairs
- a signed acknowledgement that you have read the Prescribed Information (PDF, 0.02MB).
What to do...
- Read the insolvency fact sheets available from the Australian Securities and Investments Commission.
- Read the Australian Competition and Consumer Commission's Dealing with debt: your rights and responsibilities guide.
- Go to the ITSA website for:
- Tell the Tax Office if your business ceases trading.
- Seek the advice of a business professional (i.e. business broker, adviser, accountant or solicitor).