Declaring Bankruptcy – FAQ
How long does bankruptcy last?
How long does it take to file for Bankruptcy?
Usually, it takes about 2 weeks. It can be just a few days if you are in a hurry.
Will I lose my car if I go Bankrupt?
Usually no, once you declare bankruptcy its pretty rare for you to lose your car. Of course this is conditional and we can let you know if yours is safe. Call Bankruptcy Experts Australia on 1300 795 575.
There is a threshold or amount of wholesale value your car can be worth while you are bankrupt which is $7,350. You will find all sorts of incorrect information about this on the internet, here are the facts. That $7,350 represents not total value it represents equity. So in other words if you have a car worth $35,000 you are paying off or leasing and the amount you could sell it for is $30,000 then you can keep your car because its equity is only $5,000. The company that lent you the money for the car will be pleased for you to keep the car even though you are bankrupt as long as you keep up the payments, they want your interest each month even if you are bankrupt.
Can I travel Overseas?
Yes. There is plenty of rubbish on the internet telling you you cannot travel overseas or leave Australia while you are bankrupt but it is simply not true. All you need to do once you are bankrupt is request permission to travel to your appointed bankruptcy trustee. You will get permission no problem, there is a very basic one page form you need to fill to inform the trustee of how long you will be traveling etc. This travel restriction has been put in place so high flyers don’t skip the country. In some cases the trustee will request your passport, don’t worry about it you can request it back when you need to travel.
What happens to my Credit Rating?
Bankruptcy lasts 3 years and will sit on your credit report for that time. After 3 years it will appear on your credit file for another 4 years as a discharged bankrupt, so in other words bankruptcy will show up on your credit report for a total of 7 years. You can have it removed if you get your bankruptcy annulled. When it comes to getting a loan again however once you have done your 3 years, you will be officially a discharged bankrupt there are plenty of lenders that will give you a home loan or a car loan as a discharged bankrupt. So once you have done your 3 years you can start again.
Can I have my Bankruptcy Annulled?
Yes. This process will take about 2 weeks and will totally remove the bankruptcy from your credit file. There are provisions within the Bankruptcy Act that enable bankrupt to have their bankruptcy annulled through a Section 73 proposal.
You can apply for an annulment anytime during the 3 years of bankruptcy. At Bankruptcy Experts Australia we exercise the best possible course of action for you to get back up and running, eliminating residual effects and hindrances of past financial situations to give you the best possible result. Having experience and skills specialising in Section 73 proposals, we can combine this with our proven strategies and methods to bring you through bankruptcy unscathed, ready to start over.
How does Annulment actually work?
Rather than following the natural course of bankruptcy over 3 years or more, which would result in a terrible credit record and a painful and arduous process, a Section 73 proposal is an approach where “everybody wins”.
Basically, this is how it works. Lets say you owe $30,000 to you creditors, after two and half years you haven’t paid back any money to the trustee because you haven’t earned over the threshold amount. Then a very kind relative offers you $5,000 to help annul your bankruptcy. We put an offer on your behalf to your creditors and say we are happy to pay $5,000 to the creditors and all we want in return is for them to agree to annul the bankruptcy. They then decide whether or not to accept it. Generally they do because $5,000 is better than nothing. Put it this way, if someone owed you $30,000 and you knew you would never get that money back and they offered you $5,000 would you take it? Of course you would, If you need more information about this give Bankruptcy Experts Australia a call on 1300 795 575.
Can I go bankrupt if I’m already in a Debt Agreement or Personal Insolvency Agreement or in a Consolidation Loan Contract?
Yes! We can help you get out of all of these arrangements, with Debt Agreements and Personal Insolvency Agreements we need to have you released from them first before you file for bankruptcy but its no problem. If you are tied into one of these and just can’t get on top give us call 1300 795 575.
What debts wont bankruptcy wipe out?
There are only a handful of debts that bankruptcy won’t 100% elimentate out, such as Centrelink debts, child support, HECS and a court imposed finessuch as speeding fines etc. Finally money owed to an insurance company as a result of a car accident in an uninsured car that you were driving.
Other than that it will cancel things like your credit cards, store cards, GST and tax, unsecured personal loans, etc. In reality there are too many things to list if you have a particular debt you are worried about just give us a call on 1300 795 575.
Is there a limit to the amount of debt I can go bankrupt for?
You can’t go bankrupt for an amount less than $5,000, however there is no limit beyond that if you owe a couple of million dollars that’s treated no differently than $20,000.
How can I be sure that you will be successful in making me bankrupt?
At Bankruptcy Experts Australia we have helped thousands of people file for bankruptcy over the years we have never had anyone application rejected, that’s we we offer a 100% money back guarantee.
What If I’m not completely sure who I owe money to?
There is a simple strategy we use here, all you need to do is get a copy of you credit file it will have your credit history on there. Companies like www.veda.com.au will be able to get you a copy for a small fee.
What If I forgot about a bill I had and I don’t include in on my bankruptcy paperwork?
Don’t worry about it, you can simply add it to your paperwork anytime in the 3 year period while you are bankrupt. Just as long as the debt was incurred before you went bankrupt and not during.
Can I have business debts wiped out with my bankruptcy also?
Yes! We can help you do this, although its possible there are implications and plenty of regulation around this process so give us a call and we will guide you through the process on 1300 795 575.
Can I pay out my bankruptcy debt and have it annulled?
Yes. There is a process to follow but if you win lotto or inherit some money you can use it to get your slate wiped clean. There is a way of doing this properly just give us a call first.
What if someone is bankrupting me is there anything I can do?
Generally, if you owe money to someone they can get a court order and bankrupt you. They need to follow a process but it is possible. What you want to avoid at all costs if possible is someone else bankrupting you, its always best to voluntarily file for bankruptcy. Unless you enjoy court cases and harassing phone calls of course.
What If my company has received a Demand or Wind Up notice can I still go bankrupt?
Yes. However this is a complicated process get some professional advice if its handled incorrectly it could be fatal. For a free consultation call 1300 795 575.
Do I have to go to court if I go bankrupt?
No. We handle the entire process for you.
Can my Bankruptcy be done over the phone?
Yes. We understand you are busy if you have a phone we can help you simply give us a call on 1300 795 575.
What if I’m living overseas can I still go bankrupt?
Yes. This is possible it requires some emails back and forth but it can be done.