THE 7 THINGS MOST PEOPLE WANT TO KNOW ABOUT DECLARING BANKRUPTCY |
| |
| 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 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 dependants you have. Ring us to find out more details. |
| |
3. Your credit rating - Your bankruptcy will stay on your credit rating for 7 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 ITSA (Insolvency and Trustee Service Australia). We can help you with the application if you need assistance. |
| |
| If you have any questions, call today on 02 9631 2223 (local call cost) |
