|November 15, 2015||2|
What you must know before you declare bankruptcy.
If you are overwhelmed by debt and you are looking at Bankruptcy Information, there are 4 implications you must consider first.
When it concerns Bankruptcy Information in Australia, the process will commonly last for 3 years most of the time and for that 3 years your credit file will be registered with a ‘bankruptcy’ on it, this basically means you will not have the ability to borrow money. By the end of your 3 years you will be a ‘discharged bankrupt’ what this suggests is that your credit file will not say you are currently bankrupt it should say you were bankrupt. What this implies is that only select lenders will let you to borrow money for things like houses and cars at a slightly greater interest rate, but if your income is ok then you will likely be okay. If you just Google Search ‘Loans to discharged bankrupts’ you will find plenty of lenders out there. The reason is simple, you are really a good risk given that you have no other debts anywhere. Your credit file will be branded with a ‘discharged bankrupt’ from the day your bankruptcy is finalised for another 2 years. So put simply your credit rating will be back to upstanding again after 5 years like nothing transpired. If you have already had someone default your credit file it also stays on your credit file for 5 years and the implications for borrowing money are equally dire with a default– and it is therefore you will need to speak with someone about Bankruptcy Information.
Most of the time by the time someone files for bankruptcy in Geelong their credit file is so broken that the impact bankruptcy has on their credit rating is of no real effect they cannot borrow money anyhow. If you are contemplating bankruptcy and you are would like to know more give us a call here at Bankruptcy Geelong on 1300 818 575, or visit: www.bankruptcy-geelong.com.au
When people come to me concerning Bankruptcy Information I’m often asked ‘what assets will I lose when I file for bankruptcy?’ It is probably much easier to think about it this way: Your household belongings are not going to be impacted. The assets that you will sacrifice will be big items 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 it has no equity in it. So its not the total worth that matters in this case its the equity or the distinction between the loan and the value of the car. But I don’t want to talk too much more about assets because it is a complicated area of Bankruptcy Information, if you have questions about assets because you are considering Bankruptcy Information call us here at Bankruptcy Geelong on 1300 818 575, or visit: www.bankruptcy-geelong.com.au
There is a lot of confusing information and facts around about assets and bankruptcy, so ensure you get the right assistance. Your house may also be of concern for you, because you may be able to keep your house and still file for bankruptcy, once more contact us if you would like to know more about houses and Bankruptcy Information in Geelong.
For the 3 years you are bankrupt you may be needed to provide some of your income back toward your debt. (see table below).
There are some points to consider with this aspect of your income though, firstly if you pay any child support that comes out of your income first off, so in other words your net income will be calculated once you pay your tax and then child support, what’s leftover 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 each week.
If one partner in a relationship is bankrupt the non-bankrupt partner can make any income because it’s not factored into the equation.
If you are self-employed or your income is sporadic the figure will be determined annually and not each week. If you earn over the threshold amount every week then you will be required to add weekly from your pay.
But this is actually important when it concerns Bankruptcy Information since If you do not contribute from your salary like you are meant to, the effects are major, your bankruptcy may be increased until you do re-pay the required amount.
The bottom line with bankruptcy and overseas travel is simple. 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 challenges In Bankruptcy Information about Assets, Income, Credit Rating, and travel limitations contact us here at Bankruptcy Geelong on 1300 818 575.