Bankruptcy Issues

You probably have a lot of questions about what happens when you declare bankruptcy. Here are the most common issues people want to know about.

1. Your Debts

Most of your debts will be cleared immediately by Bankruptcy. To find out which specific debts will be cleared, it’s best to tell us about your debts so we can let you know.

2. Bankruptcy Time

For most people, bankruptcy will last for 3 years. It’s during that time that you may have to make contributions, but only if you earn over a certain amount. The contributions depend on your income and how many dependents you have. Ring us to find out more details.

3. Your Credit Rating

Your bankruptcy will stay on your credit rating for 5 years.

4. Keeping Your Car

Generally speaking, if you keep making your payments on your car, then you’ll be able to keep it.

5. Your Assets

If you have major assets, then you can expect that they’ll be sold. There are some things you can keep, like a car up to a certain value, household and personal items, tools of trade and other things.

6. Being in Business

You can still run a business even though you’re bankrupt but you can’t be a director of a company. As a business owner who is an undischarged bankrupt, you have the legal obligation to disclose that.

7. Overseas Travel

You can still travel overseas. You just need to ask for written permission from your trustee, who in most cases will be AFSA (Australian Financial Security Authority). We can help you with the application if you need assistance.

8. Keeping Your House

It’s even very possible to keep your house by going bankrupt! Speak to us to find out how.

If you’re ready to get on top of you debt challenges, then Contact Us Now using the form below.