Going bankrupt or being declared bankrupt by a creditor, who is owed money that cannot be repaid, is a serious matter and has legal consequences.
The journey into bankruptcy often starts with a small debt that wasn’t settled in time and then forgotten.
But with late payment fees, penalty charges and high credit interest, that small debt can quickly become a crushing financial burden.
Add to that personal factors such as unemployment, relationship breakdowns or ill health and a difficult financial situation can quickly become desperate.
Ma’ata Solofoni is a senior solicitor at the Financial Rights Legal Centre in Surry Hills. She is receiving a growing number of calls about bankruptcies.
Ma’ata Solofoni says the rise is in enquiries is often driven by financial institutions threatening customers fallen behind with payments with legal action.
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