- Jan 03, 2017
If you are swamped by debt and you are having a look at Bankruptcy, there are without a doubt 3 effects you must think about to start with.
For the 3 years you are actually bankrupt you might have to chip in some of your income back toward your debt despite being bankrupt. (see table below).
This is actually crucial when it involves Bankruptcy because If you do not give from your salary like you are expected to, the effects are serious, your bankruptcy may be extended until you do re-pay the required amount.
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 to begin with, so simply put your net income will be determined once you pay your tax and after that child support, what remains is your net income.
If you are a couple and you both declare bankruptcy these figures are based upon individual incomes not mixed so with no dependents each partner can earn $1,010.45 per week.
If one partner in a relationship is bankrupt the non-bankrupt partner will be able to earn any income because it’s not factored into the equation.
If you are self-employed or your source of income is up and down the figure will be measured annually and not per week. If you earn over the threshold amount weekly then you will be required to contribute weekly from your pay.
When people come to me regarding Bankruptcy I’m often asked ‘what assets will I lose when I apply for bankruptcy?’ It is possibly simpler to visualize it this way: Your household belongings are not going to be impacted. The assets that you will lose will be substantial things like cars, boats, houses etc. You are able to have a car to the value of $7,500 in equity. So simply put if you have a $20,000 car with a $20,000 car loan attached you can keep it thanks to the fact that it’s got no equity in it. So it’s not the overall value that matters in this case it’s 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 complex area of Bankruptcy, if you have questions about assets because you are looking into Bankruptcy phone us here at Bankruptcy Experts Cairns on 1300 795 575, or visit: www.bankruptcyexpertscairns.com.au
Your home may also be of concern for you, since you may have the chance to keep your house and still declare bankruptcy, When it comes to Bankruptcy though there is a lot of contrary information out there, so do some investigation and make sure you actually comprehend what is going to happen. Give us a call if you would like to know more about houses and Bankruptcy in Cairns.
The bottom line with bankruptcy and overseas travel is uncomplicated. If you get the right advice and apply for bankruptcy properly in the first place, then you will not have a problem going overseas as often as you want even though 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 concerns In Bankruptcy about Assets, Income, Credit Rating, and travel limitations contact us here at Bankruptcy Experts Cairns on 1300 795 575, or visit: www.bankruptcyexpertscairns.com.au