Bankruptcy, Insolvency
If you are under serious financial hardship and have no foreseeable chance to repay your debts then you may have to consider bankruptcy. This has become more and more common in Australia of late, due to the ever rising cost of living and increased competition for businesses.
If you are considering bankruptcy then it is most likely that you have different creditors already chasing you for money. Other options before bankruptcy can include business insolvency or personal insolvencyThis can be both stressful and disturbing, aswell as hard for your ego. Voluntary bankruptcy is a way the government can authorise your release from these debts which will give you the chance to make a fresh financial start.
When your bankruptcy agreement is approved, not only will your debts be cleared, but the people you owed money will no longer be able to approach you for money. You will be back in control.
Almost all debts can be included in voluntary bankruptcy. Some of the few debts which can’t be considered are child support, fines, student loans and HECS payments. By declaring voluntary bankruptcy, you know longer lose your personal household assets. You can still own a vehicle (up to a certain value)and you can keep tools associated with earning money. If you have a secured loan on your car you can keep the car as long as you can continue making the payments.
When your bankruptcy is processed, for the following three years you will be considered as undischarged bankrupt. Some rules will govern how much money you can earn during this period though it varies from $770 to $1050 depending on how many dependants you have. If you earn more than this, fifty percent of the extra amount will go to your creditors. After this three years you become discharged bankrupt and are free to earn whatever money you wish.
Some money you have can be protected from creditors with a bankruptcy agreement. You can still receive some payments such as Centre Link payments. You can still travel overseas and you can still operate a business. You can also still apply for credit. All of these situation will have responsibilities attached and you should contact us to find out more information on this.
To have a professional contact you about the prospect of bankruptcy, just fill in our simple contact form. We encourage our clients to explore other options first and make every endeavour to help you not go bankrupt, but sometimes it is inevitable.
Our service is highly confidential and we hold our clients best interests as our highest priority. That is why we are a leading bankruptcy consultant in Australia.