Bankruptcy is a legal process where you're declared unable to pay your debts. It can release you from most debts, provide relief and allow you to make a fresh start.

You can choose to enter into bankruptcy. Bankruptcy normally lasts for 3 years and 1 day. To apply for Bankruptcy, you need to complete and submit a Bankruptcy Form to the Australian Financial Security Authority (AFSA). This can be done through AFSA or you can contact them on 1300 364 785 and ask for it to be posted to you.

AFSA manages the application of bankruptcy and the personal property securities register in Australia. They offer information and links to advice on:

• What to do if you can't pay your debts.
• The process and consequences of bankruptcy and debt agreements.
• Checking security interests registered against a second hand vehicle, eg: whether it is reported stolen, written off, or at risk of repossession.
• Personal Property Securities Register (PPSR) which may help to establish ownership in a dispute or solvency scenario.
• What to do if owed money.

If you are thinking about going bankrupt, you can speak to a financial counsellor to discuss your options for dealing with your debt and getting back on track.

To speak to a financial counsellor please call the National Debt Helpline on 1800 007 007.