Even if you declare bankruptcy in AU you are still obligated to (partially) cover your debts once you're back on your feet... it doesn't just automatically release you from all financial responsibility. I came pretty close to it a few years ago with a failing business I should have closed long before I did, but decided against bankruptcy. I'm glad I did since my credit record remains untarnished. I don't think we'd be building a home if it had a bankruptcy listed.
