The top 3 concerns you are going to have with Bankruptcy in Australia

If you are staggered by debt and you are checking out at Bankruptcy, there are normally 3 effects you should consider first.

Income Loss

For the 3 years you are generally bankrupt you might be needed to chip in some of your income back toward your debt despite being bankrupt. (see table below).

This is really vital when it involves Bankruptcy because If you do not supply from your salary like you are supposed to, the consequences are severe, your bankruptcy may be extended until you do re-pay the required sum.

There are some factors to consider with this element of your income though, first of all if you pay any child support that comes out of your earnings first, so simply put your net income will be determined once you pay your tax then child support, what’s left is simply your net income.

If you are a couple and you both declare bankruptcy these particular figures are based upon individual incomes not coupled so with no dependents each partner can earn $1,010.45 in the hand every week.

If one partner in a relationship is bankrupt the non-bankrupt partner will be able to earn any income because it’s not factored into the situation.

If you are self-employed or your income level is up and down the figure will be measured annually and not per week. If you earn over the threshold amount weekly then you will be required to contribute weekly from your pay.

Asset Loss

When people come to me regarding Bankruptcy I’m often asked ‘what assets will I lose when I declare bankruptcy?’ It is possibly simpler to picture it this way: Your household belongings are not going to be affected. The assets that you will lose will be big things like motor vehicles, boats, houses etc. You are able to have a car to the value of $7,500 in equity. So simply put if you have a $20,000 car with a $20,000 car loan attached you can keep it due to the fact that it’s got no equity in it. So it’s not the overall value that matters in this particular case it’s the equity or the distinction between the loan and the value of the car. But I don’t wish to talk too much more about assets because it is a complex area of Bankruptcy, if you have concerns about assets because you are investigating Bankruptcy contact us here at Bankruptcy Experts on 1300 795 575, or visit:

Your home may also be of concern for you, since you may have the chance to keep your house and still file for bankruptcy, When it concerns Bankruptcy though there is a lot of conflicting information out there, so do some research and see to it that you actually understand what is going to happen. Give us a call if you want to know more about houses and Bankruptcy in Australia.

Overseas Travel

The bottom line with bankruptcy and overseas travel is clear-cut. If you get the correct advice and apply for bankruptcy properly from the beginning, then you will not have a worry going overseas as frequently as you want while you are bankrupt.

The process is a simple online application you pay $150 and you are on your way.

If you are concerned about any of these issues In Bankruptcy about Assets, Income, Credit Rating, and travel limitations contact us here at Bankruptcy Experts on 1300 795 575, or visit: Bankruptcy Experts

About the author