Is Bankruptcy the right option for me?

As a debtor, you should only really consider declaring bankruptcy after you’ve explored all the other options first. When you are declared bankrupt, your details get recorded on a government database known as the National Personal Insolvency Index, or NPII. Banks and other creditors will generally always consult the NPII before they’ll lend anyone money or even considered for credit cards, so declaring bankruptcy is likely to severely hurt your ability to obtain credit like home loans , personal loans or apply for a credit card .
How do I declare Bankruptcy?
Declaring bankruptcy is a fairly simple process. A debtor’s petition, statement of affairs, and acknowledgement that you have received and read over the ‘prescribed information’ needs to be lodged with a registered trustee or directly with the Insolvency and Trustee Service of Australia (ITSA).
Filing for bankruptcy is free, though if you choose to go through a registered trustee, they are entitled to remuneration. These fees can generally be taken out of the proceeds of a property sale, so long as the creditor(s) provide their consent.
Bankruptcy lasts a minimum of three years if you can come to an acceptable agreement with your creditor(s) and consistently meet your obligations, though under certain circumstances this may be extended to 8 years.