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If you are destroyed by debt and you are taking a look at Bankruptcy, there are definitely 3 repercussions you need to think about before anything else.


Income Loss

For the 3 years you are generally bankrupt you may have to pitch in some of your income back toward your debt despite being bankrupt. (see table below).

This is really significant when it involves Bankruptcy because If you do not provide from your salary like you are expected to, the repercussions are serious, your bankruptcy may be stretched until you do re-pay the required level.

There are some factors to consider with this aspect of your income though, to start with if you pay any child support that comes out of your income first, so in other words your net income will be determined once you pay your tax and then child support, what remains 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 per week.

If one partner in a relationship is bankrupt the non-bankrupt partner can still earn any income simply because it’s not factored into the situation.

If you are self-employed or your cash flow is up and down the figure will be determined annually and not weekly. If you earn over the limit amount weekly then you will be required to contribute weekly from your pay.

Asset Loss

When people come to me concerning Bankruptcy I’m often asked ‘what assets will I lose when I file for bankruptcy?’ It is possibly simpler to visualize it this way: Your household belongings are not going to be affected. The assets that you will lose will be large things like motor vehicles, boats, houses etc. You can 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 thanks to the fact that it’s got no equity in it. So it’s not the total value that matters in this 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 since it is a complex area of Bankruptcy, if you have questions about assets because you are checking out Bankruptcy give us a call here at Bankruptcy Experts Tennant Creek on 1300 795 575, or visit: www.bankruptcyexpertstennantcreek.com.au

Your home may also be of concern for you, because you may have the chance to keep your house and still file for bankruptcy, When it comes to Bankruptcy though there is a lot of contradictory information out there, so do some groundwork and make certain you actually know what is going to happen. Give us a call if you would like to know more about houses and Bankruptcy in Tennant Creek.

Overseas Travel

The bottom line with bankruptcy and international travel is clear-cut. If you get the best advice and file for bankruptcy properly from the beginning, then you will not have a concern taking a trip overseas as frequently as you want even though you are bankrupt.

The method is a basic 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 Tennant Creek on 1300 795 575, or visit: www.bankruptcyexpertstennantcreek.com.au

By | 2018-07-26T05:00:18+00:00 January 4th, 2017|Bankrupt, Blog|0 Comments

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