Apply for bankruptcy

Understanding the bankruptcy process

The consequences of bankruptcy are serious. Make sure you understand the impacts of bankruptcy before you apply. Once an application is accepted, it cannot be withdrawn or cancelled if you change your mind. Before continuing, please read: Before entering bankruptcy.

You can apply to become bankrupt:

• as an individual
• jointly with someone else
• as a member of a partnership.

To apply for bankruptcy, your application must include 2 forms: a Debtor's Petition form and a Statement of Affairs form.

Applying as an individual

You can apply for bankruptcy via AFSA's Online Services by completing and submitting both the Debtor's Petition and Statement of Affairs forms online. Both forms must be submitted at the same time.

Applying jointly with someone else or as a member of a business partnership

If you are applying for bankruptcy with someone else, each person must create an Online Services account and complete separate Debtor's Petition and Statement of Affairs forms. All forms by all parties must be submitted on the same day.

Note: If you are applying as a member of a business partnership, each form must be submitted by all of the partners of the business partnership, OR the majority of partners who are residents in Australia.

Understanding the forms

Debtor's Petition form

This is a formal application to the Official Receiver (AFSA), to request to make yourself bankrupt. The form includes important information ('Prescribed information') about the alternatives and the consequences of bankruptcy.

You must read and understand this information before signing to make sure bankruptcy is the right option for you.

Statement of Affairs form

This form outlines your financial situation. You will need to provide details of:

• your income
• your assets (things you own)
• your debts (money you owe)
• any businesses, companies and trusts that you're part of
• any court cases that you're involved in.

To support the information you provide, you may need things such as payslips, Centrelink statements, bank statements, and account numbers.

How to apply

Create an Online Services account using Digital ID or by creating an AFSA account. It may take you about 30 to 60 minutes to create your account and complete your application for bankruptcy.

For help setting up an account, see Get help with creating an Online Services account.

Create an Online Services account

Already created an Online Services account? Log in to your account

For information to help you with completing your application online, see Completing your bankruptcy application online.

Can't create an Online Services account?

If you are unable to complete the online proof of identity check, or unable to complete the application online, you can download and submit your forms via email or post.

For more information about completing your forms offline, see Submitting a bankruptcy application offline, or contact us.

Is there a fee to apply for bankruptcy?

No, there is no cost to apply for bankruptcy with AFSA.

Some services may charge a fee to help you apply for bankruptcy. You should ask about any costs before you agree to accept help.

Getting help to complete your application

If you need help with completing your application, you can talk to a financial counsellor, registered trustee or other service provider.

Financial counsellors are available nationwide and provide an independent, free and confidential service. To speak with a financial counsellor, contact the National Debt Helpline on 1800 007 007. For more information on financial counsellors and other support services, see Where to find help.

You can also contact us if you have any questions or are experiencing any issues.

Completing the application on behalf of someone else

In some situations, it may be possible to complete an application for bankruptcy for another person. A person can sign the Debtor's Petition form on behalf of someone else only if the applicant is:

• blind, partially sighted, illiterate or partially literate
• non-English speaking
• unable to complete the form due to physical incapacity.

Note: 'Physical incapacity' means an inability to act due to illness, injury or a physical condition. It does not include where an individual is unable to sign due to absence (for example, living remotely, being overseas or in prison).

For more information on this process, see Complete a bankruptcy application on behalf of someone else.

Other important considerations

Request certain information to be withheld from the NPII

When you become bankrupt, your name and other details will appear on a publicly accessible register called the National Personal Insolvency Index (NPII).

If publishing certain information is likely to put your safety at risk, you can apply to have your address (and some other information) withheld from the NPII. Your request must be submitted with your Debtor's Petition and Statement of Affairs forms.

We cannot withhold your name or date of birth.

For information on how to make this request, see Can I withhold my details that appear on the NPII?

You can choose to have a registered trustee to administer your bankruptcy

You can ask a registered trustee to administer your bankruptcy. If they agree, you must ask them to complete a Trustee Consent to Act Declaration form. You must submit this at the same time as your Debtor's Petition and Statement of Affairs forms.

If no consent is given, then your estate will initially be administered by the Official Trustee (AFSA). In some cases, the Official Trustee may transfer the administration of your estate to a registered trustee. The trustee can change at any point during your bankruptcy. All trustees charge a fee, which is generally recovered from any money in the bankrupt estate.

Note: A registered trustee cannot submit your application online for you. However, they can help you complete paper versions of the forms and send them to registry@afsa.gov.au.

What happens when we receive your form?

If we accept your application for bankruptcy, a confirmation letter will be sent to you and your creditors. This letter will contain your AFSA administration number, which is known as your bankruptcy number. Your creditors may ask for this.

If we don't accept your application, we'll notify you in writing with the reasons.

If you submitted your application online, you can log in to your account at any time to see the status of your application.

For more information, see Check the status of your bankruptcy application.