If you are considering declaring 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.
*Unsecured Debts – Credit Cards, Personal Loans, Pay Day Loans, Phone/Electricty Bills are among the debts that you will no longer have to pay.
*Secured Debts – If you stop paying any Secured Loans normally the security will be repossessed and you won’t have to pay any more.
* 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 – You will be Bankrupt for 3 Years.
* Assets – If you have any significant assets you would 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 among other things.
* 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 – There is nothing in the law that says because you have declared bankruptcy you are banned from travel. A Bankrupt will generally have to request permission to 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 will be able to keep the car. If you own it outright providing it is valued at less than the current amount, $7,700.00, you will be allowed to keep it.
These are the most common things that people worry about or need advice on when considering voluntary bankruptcy. 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.
Call us today for confidential friendly advice.
Phone 1300 163 017
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