The basics you must know

If you are considering bankruptcy there are a number of issues you need to know about. Most of the people we help are everyday working people and the following issues are the most common cause for concern.

CREDIT RATING – The fact you have gone Bankrupt will go 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. They are allowed to hold the details on your file for 5 years.

BANKRUPTCY TIME – Generally you will be Bankrupt for 3 Years. It is during this time that you would have to make contributions from your income if it is over the base income threshold amount. The amount for a person, with no dependants is currently $1,074.49 net (after tax) per week.

ASSETS – If you have any significant assets you would expect to have to surrender them for the benefit of your creditors. However there are some things that you are allowed to keep including a car up to a certain value, household & personal items and tools of trade amongst other things.

YOUR HOME – Depending on the amount of equity you have in your home, ideally the less the better, it may be possible that you can stay in it (Ask us how). If you have a larger amount of equity you most likely will lose your home. If you are renting going bankrupt will not affect your lease.

BEING IN BUSINESS – Just because you are Bankrupt it doesn’t mean that you can’t have a business or be self-employed. You are however unable to be a director of a company.

OVERSEAS TRAVEL – We have never had a client been refused to travel overseas. If overseas travel is an issue for you then speak to us.

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.

These are the most common things that people worry about or need advice about. 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.

 

For a free friendly chat call us During office hours:

Monday to Friday – 9.00am to 5.00pm

1300 163 017

Australia wide – We can help you wherever you are in Australia.