If you cannot pay your debts and come to a suitable repayment arrangement with your creditors, you may choose to voluntarily lodge a petition to become bankrupt. This will mean that a Trustee takes control of your property and assets and liaises with your creditors. The Trustee’s role is to provide as much money back to creditors as possible.
Bankruptcy can be voluntary by way of a Debtor’s Petition or forced upon an individual by a Court, by way of a Sequestration Order.
Bankruptcy is designed for those individuals whose circumstances don’t allow for a Debt Agreement or Personal Insolvency Agreement. This means in most circumstances, an individual is no longer required to continue to pay creditors and their income is now be available to allow the individuals to move forward with their life.