7 Things You Should Know About Bankruptcy!
Bankruptcy – 7 Most Common Things You Need to Know.
If you are considering personal insolvency, voluntary Bankruptcy, there are a number of key factors you need to know about, and as most of the people we help are, everyday working people the following issues are the most common causes for concern.
1 DEBTS –Most of your unsecured debts will be cleared by Bankruptcy within about 5 days. It will STOP ALL court action, creditors(banks) and or debt collectors from calling you at all hours of the day and at your work which happens and is very concerning but legal.
2 CREDIT RATING – If you decide to in fact declare personal insolvency “bankruptcy “it is be recorded on a government file known as the National Personal Insolvency Index (NPII). It is from here, that the credit provides, and collection houses get information about our credit ratings, the main company holding this information is Equifax they are permitted to hold your details on file for a period of 5 years and have a licence to do so.
3 BANKRUPTCY PERIOD – The standard Bankruptcy Period is currently three (3) years and 1 day, and if you earn over the nominated income threshold which is (NETT after tax) approximately $1040 with no dependents per week you may be required to pay the Trustee an income contribution, the threshold is higher for each dependent under your care, speak to us about this for more detailed explanation
4 ASSETS – If you have any significant assets you would expect to have to surrender them for the benefit of your Creditors.
5 BEING IN BUSINESS – Just because you are Bankrupt, doesn’t mean that you cannot run and have a business or be self-employed. You can work as a SOLE TRADER, with an ABN, without prejudice. You are, however, unable to be a Company Director for the 3 Years.
6 OVERSEAS TRAVEL – We have never had a client been refused overseas travel. If overseas travel is an issue for you then speak to us. You may even be allowed to live and work overseas. Note: You must always apply for permission if you wish to travel overseas, to prevent problems with departure (only during your Bankruptcy period).
7 KEEPING YOUR CAR – …..YES YOU CAN KEEP YOUR CAR …read on
If your car is under finance it does not mean that you will lose it because you go Bankrupt. Generally, if you can maintain the payments, you can keep your car. You can also own / retain a car up to a prescribed value.
MEETING THE CONDITIONS OF YOUR BANKRUPTCY-
It is up to you to inform your Trustee of any changes to your situation, be it your address, your job, failure to do so can impact your discharge date as the trustee has the power to extend your bankruptcy period if he see fit. We can explain to you how you could expect any of these issues to affect you. We can also explain to you how other issues not mentioned here may affect you. Remember our clients are everyday people who are seeking genuine help and answers to their individual situations.
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Phone: 1300 861 455 OR Fax: 02 8088 7485