Personal Bankruptcy
Clear guidance for individuals navigating financial difficulty
Financial challenges can be overwhelming, whether they relate to personal debts or business obligations. At HM Advisory, we provide professional, compassionate support to help you understand your options, protect your interests and regain stability.
Our team of registered Trustees and insolvency experts guide you through each step, offering clarity and confidence during uncertain times.
We are here to help
Our first consultation, whether you are a business or an individual, is free of charge and without obligation. Please feel free to email us at [email protected] or use the contact form below.
What is Bankruptcy?
Bankruptcy is a legal process designed to relieve individuals from unmanageable debts under the supervision of a registered Trustee. It can be voluntary, where you apply for bankruptcy yourself or involuntary, where a creditor initiates the process.
Once bankruptcy is in effect, the Trustee takes control of your divisible assets, manages creditor claims, and ensures debts are addressed according to law. Bankruptcy can provide a fresh start, shielding you from further legal stress while helping you rebuild at a manageable pace.
How We Help
When debt begins to impact your wellbeing, it can be hard to know where to turn. HM Advisory offers compassionate support, taking the time to understand your story and provide options that help you regain control and peace of mind.
Overwhelming personal debt:
If you are struggling with credit cards, personal loans or unpaid bills, we can help assess your options and create a clear plan to manage or resolve your debts.
Creditor pressure and legal action:
When you are facing enforcement actions, garnishee orders or constant creditor contact, we step in to halt action and provide immediate relief.
Complex financial circumstances:
For those with multiple debts, jointly held obligations or complicated personal assets, our Trustees evaluate your situation thoroughly and guide you through the process.
Insolvent deceased estates or estate complexities
We assist executors or beneficiaries when a deceased estate cannot meet its obligations, helping protect rights and ensure creditors are appropriately managed.
Director or guarantor risks:
If you hold personal guarantees on business debts or face potential liability, we provide advice to mitigate risks and navigate obligations safely.
Rebuilding after financial distress:
Beyond managing current debts, we help you understand your path forward, whether through bankruptcy annulment, payment arrangements, or steps to restore financial stability.
What is the difference between Bankruptcy, Insolvency and Liquidation?
Understanding the distinction is critical:
- Insolvency occurs when a person or business cannot meet its financial obligations as they fall due.
- Bankruptcy is a formal legal process relieving individuals of debts under the supervision of a Trustee, providing structured financial relief.
- Liquidation is the orderly winding-up of a company’s affairs, selling assets to satisfy creditors, and often ending the business’s operations.
Depending on your financial situation, our team can help you consider solutions beyond bankruptcy to resolve your debts.
How Does Bankruptcy Start
Entering bankruptcy is straightforward with expert guidance.
- For voluntary bankruptcy, you lodge a Declaration of Intention and then apply for bankruptcy under a debtor’s petition.
- For creditor-led proceedings, a court may issue a sequestration order if conditions are met.
Our team ensures your obligations are met, minimising stress and legal risk. We’ll talk you through your options and pathways to financial freedom.
Why HM Advisory?
Our approach brings together technical expertise with real guidance. We are with you every step of the way during this chapter:
- Proven expertise: Registered Trustees with decades of experience navigating bankruptcy.
- Empathetic guidance: We simplify complex legal steps, easing stress and confusion.
- Tailored solutions: Advice specific to your financial situation, whether personal debt, director obligations or insolvent estates.
- Practical outcomes: Protect your rights, satisfy creditor requirements, and explore options to rebuild financial stability.
With offices across Australia, HM Advisory is here to provide confidential, professional advice for anyone facing financial distress, helping you move forward with clarity and confidence.
FAQs
How long is bankruptcy in Australia?
Bankruptcy usually lasts three years and one day from when your Statement of Affairs is accepted by your bankruptcy trustee. Depending on your situation, it may be extended if you don’t meet certain obligations. Many people seek bankruptcy advice to understand whether early annulment or a Section 73 composition could shorten the period. If during the bankruptcy process you seek to have your bankruptcy annulled through a Section 73 composition, our expert team can guide you through the steps required and bring your proposal to creditors. Throughout the process, your trustee manages your financial affairs under the Bankruptcy Act, providing structured support when you need it most.
How long does bankruptcy stay on your file?
Your bankruptcy is recorded on the National Personal Insolvency Index (NPII) and noted on your credit file. The credit reporting impact generally lasts five years, while the NPII record remains permanently for transparency. With the right bankruptcy services and guidance, you can start rebuilding much sooner than most people expect, even while the listing remains.
How do I enter bankruptcy?
You can enter bankruptcy either voluntarily or through creditor action.
- Voluntary bankruptcy involves lodging a debtor’s petition with AFSA, giving you more control over the timing and process.
- Involuntary bankruptcy occurs when a creditor applies to the court for a sequestration order.
In both cases, a registered bankruptcy trustee is appointed to manage your estate. Seeking professional bankruptcy advice early helps ensure you understand your rights, obligations, and all available alternatives before taking this step.
What if I don’t have any assets?
Bankruptcy may still offer meaningful relief, even if you have little or no assets. A bankruptcy trustee will review your situation and may not need to sell any assets if none exist. Bankruptcy services can help stop creditor action, pause legal enforcement, and give you space to stabilise your finances. Many people with no assets find bankruptcy a practical way to reset and rebuild without ongoing pressure.
What is a bankruptcy trustee?
A bankruptcy trustee is a registered professional responsible for administering the entire process. They manage your estate, communicate with creditors, realise assets if required, and ensure the process is fair and compliant with the law. Your trustee acts independently while also helping you understand each step, making them an essential part of effective bankruptcy services and sound bankruptcy advice.
We are here to help
If you, or someone you know, may require our services, please feel free to contact us for an initial consultation – this is free of charge and without obligation.
Victoria
Level 21, 114 William Street
Melbourne VIC 3000
PO Box 117
Collins Street West VIC 8007
T (03) 8866 7600
F (03) 9428 4152
Western Australia
Suite 4, Level 3
16 Victoria Avenue Perth WA 6000
PO Box 6243
East Perth WA 6892
T (08) 9334 7400
F (03) 9428 4152
Queensland
Level 14, 15 Adelaide Street
Brisbane QLD 4000
PO Box 13127
George Street Brisbane QLD 4000
F (03) 9428 4152
New South Wales
Level 2, 263 George Street
Sydney NSW 2000
PO Box Q904
Queen Victoria Building NSW 1230
F (03) 9428 4152