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Going Bankrupt in Australia 2016 - What you will need to know long before you declare bankruptcy.

If you are overwhelmed by debt and you are discussing Going Bankrupt, there are 4 effects you must consider first.


Credit Rating


When it involves Going Bankrupt in Australia, the process will generally last for 3 years in many cases and for that 3 years your credit file will be branded with a 'bankruptcy' on it, this basically means you will not have the opportunity to borrow money. At the end of your 3 years you will be a 'discharged bankrupt' what this means is that your credit file will not say you are presently bankrupt it will say you were bankrupt. What this implies is that only select lenders will allow you to borrow money for things like houses and cars at a slightly increased interest rate, but if your cash flow is ok then you are going to be okay. If you just Google Search 'Loans to discharged bankrupts' you will find plenty of lenders out there. The reason is straightforward, you are really a good risk since you have no other debts anywhere. Your credit file will be marked with a 'discharged bankrupt' from the day your bankruptcy is finalised for another 2 years. So in other words your credit rating will be back to faultless again after 5 years like nothing took place. If you have actually had somebody default your credit file it also remains on your credit file for 5 years and the implications for loaning money are just as dire with a default-- and it is for this reason you will need to talk to someone about Going Bankrupt.


In most cases by the time someone files for bankruptcy in Australia their credit file is so broken that the impact bankruptcy has on their credit rating is of no real consequence they cannot borrow money anyhow. If you are thinking of bankruptcy and you are wishing to know more give us a call here at Fresh Start Solutions Australia on 1300 818 575, or visit: www.freshstartsolutions.com.au/bankruptcy-Australia.com.au


Asset Loss


When people come to me about Going Bankrupt I'm often asked 'what assets will I lose when I file for bankruptcy?' It is probably much easier to think of it this way: Your household items are not going to be affected. The assets that you will sacrifice will be big things like cars, boats, houses etc. You can possess a car to the value of $7,500 in equity. So in other words if you have a $20,000 car with a $20,000 car loan attached you can keep it since its got no equity in it. So its not the total value that makes a difference in this case its the equity or the difference between the loan and the price of the car. But I don't want to talk too much more about assets because it is a complicated area of Going Bankrupt, if you have questions about assets because you are looking into Going Bankrupt contact us here at Fresh Start Solutions Australia on 1300 818 575, or visit: www.freshstartsolutions.com.au/bankruptcy-Australia.com.au


There is plenty of confusing information available about assets and bankruptcy, so ensure you get the right guidance. Your house may also be of concern for you, because you may have the ability to keep your house and still file for bankruptcy, once more call us if you wish to know more about houses and Going Bankrupt in Australia.


Income Loss


For the 3 years you are bankrupt you may be required to chip in some of your income back toward your debt. (see table below).


There are some issues with this aspect of your income though, firstly if you pay any child support that comes out of your income first, so in other words your net income will be calculated once you pay your tax and then child support, what's left is your net income.


If you are a couple and you both go bankrupt these numbers are based on individual incomes not combined 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 can gain any income because it's not factored into the equation.


If you are self employed or your income is erratic the figure will be calculated annually and not weekly. If you earn over the threshold amount weekly then you will be required to add weekly from your pay.


But this is actually important when it involves Going Bankrupt since If you do not contribute from your salary like you are expected to, the implications are severe, your bankruptcy may be extended until you do re-pay the required amount.


Overseas Travel


The bottom line with bankruptcy and overseas travel is straightforward. If you get the right advice and file for bankruptcy properly in the first place, then you will not have a problem travelling overseas as often as you want while you are bankrupt.


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


If you are concerned about any of these concerns In Going Bankrupt about Assets, Income, Credit Rating, and travel restrictions give us a call here at Fresh Start Solutions Australia on 1300 818 575, or visit: www.freshstartsolutions.com.au/bankruptcy-Australia.com.au

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