What is bankruptcy?
If you cannot pay your debts bankruptcy is a process where you give up assets and control of your finances, either by agreement or court order, in exchange for protection from legal action from your creditors.
If you are unable to pay your debts and cannot come to suitable repayment arrangements with your creditors, you may voluntarily petition to become bankrupt.
In certain cases creditors can also apply to the court to make you bankrupt.
This is a complex issue.
There are alternatives to bankruptcy that might be more appropriate and which should be considered.
There are restrictions on the activities and responsibilities of a bankrupt person that you should understand if you are thinking about bankruptcy.
Get legal and financial advice before applying for bankruptcy.
Are all debts covered by bankruptcy?
No, not all debts are covered by bankruptcy. Get legal advice
Where can I get more information?
Last reviewed: 13/02/2014