Bankruptcy – 8 most common things you need to know
If you are considering voluntary Bankruptcy, there are a number of issues you need to know. 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 debts will be cleared by Bankruptcy within about 5 days. It will STOP ALL court action, Creditors or debt collectors from calling you at all hours of the day.
2 CREDIT RATING – The fact you have gone Bankrupt will be recorded on a government file known as the NPII. It is from here, that the credit rating company VEDA (previously known as BAYCORP or the CRAA), gets the information. VEDA is permitted to hold your details on file for a period of 5 years.
3 BANKRUPTCY PERIOD – The standard Bankruptcy Period is 3 Years. During this period ONLY, you would have to make contributions from your income if it is over the relevant nominated threshold. This amount for a person with NO Dependents is approximately $1040 .00 (after tax) per week. The threshold level is higher, if you have dependents.
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 can’t have a business or be self-employed.
You can work as a SOLETRADER, 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 – 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.
8 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, job and or financially, failure to do so the trustee has the power to extend your bankruptcy period.
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.
With any unsecured debt your Tax debt can be claimed when lodging a personal or Business bankruptcy. Call us or fill out the contact form on our site and we can discuss your options.
Is this YOU, are you drowning in bills and credit card debt. The good news is we can tell you what you can do with this situation. CALL US and we can have a chat about your options.
Number of dependants Income limit 0 $56,674.80 NETT 1 $66,876.26 NETT 2 $71,977.00 NETT 3 $74,810.74 NETT 4 $75,944.23 NETT over 4 $77,077.73 NETT If you earn this level of income you will have to pay a contribution to the Trustee, the exact amount will be calculate when you lodge you bankruptcy and received the […]
A bill to reduce the default period of bankruptcy from three years to one year was introduced into Federal Parliament in October 2017 and is expected to come into effect sometime in 2018. The key features of the so-called 1-Year Bankruptcy Bill. Which are explained below, especially note the impact of the commencement of 1-year […]
My Car Can I Keep It? Generally speaking , if you are maintaining the payments on your car you can keep it, if the car’s value is over the $7900 threshold and you have paid it off you may have to pay your trustee to amount over that threshold. For example 1: You own the […]