Going Bankrupt in Sydney 2018 - What you will need to know well before you declare bankruptcy
If you are overwhelmed by debt and you are looking into Going Bankrupt, there are 4 effects you must consider first
Credit Rating
When it concerns Going Bankrupt in Australia, the process will usually last for 3 years in most cases and for that 3 years your credit file will be stamped with a 'bankruptcy' on it, this basically means you will not have the ability to borrow money. At 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 at the moment bankrupt it will say you were bankrupt. What this implies is that only certain lenders will permit you to borrow money for things like houses and cars at a slightly higher interest rate, but if your income level is ok then you are going to be fine. If you just simply Google Search 'Loans to discharged bankrupts' you will find plenty of lenders out there. The reason is basic, you are in fact 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 put simply your credit rating will be back to squeaky clean again after 5 years like nothing took place. If you have actually had somebody default your credit file it also stays on your credit file for 5 years and the implications for borrowing money are every bit as dire with a default-- and it is because of this you will need to consult with someone about Going Bankrupt.
Most of the time by the time someone files for bankruptcy in Sydney their credit file is so damaged that the impact bankruptcy has on their credit rating is of no real consequence they cannot borrow money anyway. If you are thinking of bankruptcy and you are wanting to know more contact us here at Bankruptcy Advice Sydney on 1300 879 867, or visit: www.bankruptcy-advice.com.au/Sydney.com.au
Asset Loss
When people come to me regarding 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 belongings are not going to be affected. The assets that you will lose 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 worth that makes a difference 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 Going Bankrupt, if you have questions about assets because you are taking a look at Going Bankrupt give us a call here at Bankruptcy Advice Sydney on 1300 879 867, or visit: www.bankruptcy-advice.com.au/Sydney.com.au
There is ample confusing info available about assets and bankruptcy, so ensure you get the right advice. 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 call us if you wish to know more about houses and Going Bankrupt in Sydney.
Income Loss
For the 3 years you are bankrupt you may be needed to chip in some of your income back toward your debt. (see table below).
There are some concerns 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 worked out once you pay your tax and then child support, what's leftover is your net income.
If you are a couple and you both declare bankruptcy these figures are founded on individual incomes not combined so with no dependents each partner can earn $1,010.45 in the hand per 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 erratic the figure will be calculated yearly 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 provide from your salary like you are meant to, the implications are major, your bankruptcy may be expanded until you do re-pay the required amount.
Overseas Travel
The bottom line with bankruptcy and overseas travel is basic. If you get the right advice and file for bankruptcy properly in the first place, then you will not have an issue 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 worried about any of these challenges In Going Bankrupt about Assets, Income, Credit Rating, and travel restrictions give us a call here at Bankruptcy Advice Sydney on 1300 879 867, or visit: www.bankruptcy-advice.com.au/Sydney.com.au
