By Talk to a Lawyer · Published 19 September 2026 · 4 minute read
Bankruptcy is a personal insolvency process with consequences beyond the debt balance. If you are considering it, have received a bankruptcy notice or are already bankrupt, state that stage clearly. An individual seeking debt relief has a different enquiry from a creditor trying to recover money or a person disputing a trustee's decision.
Read. Prepare. Find an office.
Use this guide to organise your questions, then confirm the provider’s experience, availability and first-stage fee.
Find bankruptcy providers →Prepare a complete financial picture
List debts, creditors, income, assets, jointly owned property and any guarantees. Include debts you dispute and obligations you are unsure about rather than deciding they do not matter. Explain business interests, recent asset transfers and expected changes in income. The adviser needs the full picture to assess options; a single overdue bill rarely tells the whole story.
Compare the process with available alternatives
Ask how the options relate to your debts and circumstances, including the role of a financial counsellor. AFSA explains bankruptcy consequences, but personal advice should address your own property, work, travel and future obligations. Avoid relying on a general promise that all debts disappear or that every asset is protected. Ask for the assumptions behind the advice in writing.
Respond to formal documents as a separate task
If there is a notice, petition or hearing, provide the complete document and when you received it. Ask what must happen next and who will do it. Advice about longer-term debt options should not obscure an immediate response date. If a trustee is already involved, include their correspondence and identify the decision or information request you need help with.
Make the consequences discussion personal and specific
A useful advice meeting tests debt options against your actual circumstances. List assets you rely on, work or business roles, dependants and expected changes, then ask how each option may affect them. Include obligations connected with another person, such as a joint debt or guarantee. Ask which consequences are certain, which depend on further facts and which need advice from another specialist. That produces a decision record you can revisit, instead of relying on a broad comparison that may omit the feature most important to you.
Compare the scope and cost of advice
Compare advisers against the commercial decision you need to make. Give each office the same transaction stage, documents and objective, then ask for a first-stage deliverable. A review, a negotiation and ongoing business advice are different services. Record which financial assumptions need your accountant's input and who will coordinate any specialist work before a commitment is made.
- Review and advice
- Ask for the issues identified, their practical effect and the decisions you must make. Confirm whether written advice or a marked-up document is included.
- Drafting and negotiation
- Ask who communicates with the other party, how revisions are priced and what happens if the deal changes materially during the work.
- Completion or implementation
- Confirm responsibility for approvals, signing, records and follow-up tasks. Ask which registrations, searches or external professional costs sit outside the legal fee.
Read the guide to consultation fees and written quotes, or use the provider comparison worksheet.
Illustrative situation · not a client result
What a focused enquiry looks like
A sole trader has tax, supplier and household debts and owns property jointly. They bring one combined financial summary, mark disputed amounts and ask which options apply to personal obligations before making a decision based only on the largest debt.
Your preparation checklist
Gather what you already have. Mark missing records and uncertain dates rather than guessing; ask the office what it needs before sending sensitive documents.
0 of 4 gathered · ticks reset when you leave this page.
A preparation aid, not confirmation that a legal requirement is complete.
A first enquiry you can adapt
I need advice about [considering bankruptcy, a notice or an existing bankruptcy]. My debts include [types], and I am concerned about [asset or obligation]. The next document date is [date]. Can you assess the immediate issue and explain the information needed to compare options?
Replace the bracketed details with accurate information. Keep the first message brief and confirm a secure channel for the full records.
Common questions about bankruptcy
Is bankruptcy the same as closing my company?
No. Tell the adviser whether debts belong to you, the company or both, including personal guarantees; personal and corporate insolvency need separate assessment.
Who can help if I cannot afford advice?
Ask a free financial counselling service about debt support and seek legal assistance for disputed liability, formal proceedings or advice on legal consequences.
Further reading and scope
AFSA: consequences of bankruptcy
Australia; personal bankruptcy consequences and obligations.
This is general preparation information, not an assessment of your legal position. Requirements, dates and available remedies depend on the facts and jurisdiction. The linked resource has the scope described above; it does not verify an individual provider or this guide.