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.