Bankruptcy is a legal process you can apply for if you are unable to pay your debts.
There are two ways of becoming bankrupt:
- you can volunteer to become bankrupt
- a person or business that you owe money to can apply for you to be made bankrupt.
Bankruptcy gives many people a fresh start but it can have long-term consequences. It is important that you speak to a financial counsellor or a lawyer before making a decision about bankruptcy. You may have other options to deal with your debt problems instead of going bankrupt.
How we can help
We do not give legal advice about bankruptcy, but we may be able to give you some information over the phone.
- Speak to us
- Get help in your language
- Support if you are deaf or find it hard to hear or speak on the phone .
If we cannot help, we can refer you to other organisations that can.
Legal help from other organisations
Consumer Action Law Centre
The Consumer Action Law Centre gives free legal advice and representation to vulnerable and disadvantaged consumers across Victoria.
You can ask a legal expert for advice about whether you have grounds to dispute a debt. The Consumer Action Law Centre has fact sheets about dealing with debt and debt collectors.
You can also call the National Debt Help line on 1800 007 007 for help, available week days 9:30 am to 4:30 pm. Online chat is also available.
Money information and advice from the National Debt Helpline website and the Moneysmart government website.
Your local community legal centre can give you legal information and advice. Most services are free.
Financial counsellors and financial information
Financial counsellors help people who are in financial difficulty. There are free financial counsellors in most suburbs and regional areas. They provide advice about your financial situation, your options, and the consequences of those options.
A financial counsellor can also:
- check your documents
- help you sort out your debts
- negotiate with creditors and lenders on your behalf.
It can sometimes take a while to get an appointment with a counsellor, so it’s important to contact them as soon as possible – do not leave it until the last minute.
Money Smart can help you search for a financial counsellor near you.
Other organisations and services
Australian Financial Security Authority
The Australian Financial Security Authority is government agency that administers personal insolvency laws.
It can provide you with all the necessary bankruptcy papers, and refer you to a financial counsellor or other appropriate body for assistance. You can call the Australian Financial Security Authority from anywhere in Australia on 1300 364 785.
Financial Ombudsman Service
The national Australian Financial Complaints Authority – AFCA (formerly the Financial Ombudsman Service) deals with complaints about financial services.
These include complaints about banking, credit, loans, general insurance, life insurance, financial planning and other issues.
The AFCA service provides free, accessible dispute resolution for consumers and some small businesses who are unable to resolve a dispute directly with their financial services provider.
These processes can help you to resolve disputes through negotiation or mediation. These processes are an alternative to court proceedings, and decisions are binding on participating financial services providers.
Explore our related pages
Support from other websites
- Consumer Action Law Centre: get help from debt and bankruptcy resources and tools and contact their free Legal Help Line and Koori Help Line.
- Australian Financial Complaints Authority: AFCA provides consumers and small businesses with free and independent dispute resolution for financial complaints.
- National Debt Helpline: get help on debt problems and explore solutions to debt and complex financial solutions.
- Moneysmart: this Australian Government website can help you a range of debt issues using their search function and entering ‘debt’.
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