If you are drowned by debt and you are taking a look at Bankruptcy, there are 3 effects you must think about to start with.
For the 3 years you are bankrupt you might have to pitch in some of your income back toward your debt despite being bankrupt. (see table below).
This is actually vital when it concerns Bankruptcy because If you do not give from your salary like you are presumed to, the repercussions are severe, your bankruptcy may be extended until you do re-pay the demanded amount.
There are some considerations in this element of your income though, first of all if you pay any child support that comes out of your earnings to begin with, so simply put your net income will be calculated once you pay your tax and after that child support, what’s left is generally your net income.
If you are a couple and you both declare bankruptcy these particular figures are based upon individual incomes not mixed so with no dependents each partner can earn $1,010.45 weekly.
If one partner in a relationship is bankrupt the non-bankrupt partner is able to earn any income because it’s not factored into the situation.
If you are self-employed or your earnings is up and down the figure will be calculated annually and not each week. If you earn over the threshold amount weekly then you will be obligated to contribute weekly from your pay.
When people come to me regarding Bankruptcy I’m often asked ‘what assets will I lose when I file for bankruptcy?’ It is probably simpler to think of it this way: Your household belongings are not going to be impacted. The assets that you will lose will be major things like motor vehicles, boats, houses etc. You are able to have a car to the value of $7,500 in equity. So to put it simply 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 total value that matters in this particular case it’s the equity or the difference between the loan and the value of the car. But I don’t wish to talk too much more about assets since it is a complicated area of Bankruptcy, if you have questions about assets because you are considering Bankruptcy phone us here at Bankruptcy Experts Port Stephens on 1300 795 575, or visit: www.bankruptcyexpertsportstephens.com.au
Your house may also be of concern for you, since you may have the chance to keep your house and still declare bankruptcy, When it concerns Bankruptcy though there is a lot of opposing information out there, so do some research and make sure you actually are aware of what is going to happen. Give us a call if you would like to know more about houses and Bankruptcy in Port Stephens.
The bottom line with bankruptcy and international travel is unambiguous. If you get the correct advice and apply for bankruptcy properly initially, then you will not have an issue taking a trip overseas as frequently as you want whilst 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 issues In Bankruptcy about Assets, Income, Credit Rating, and travel limitations contact us here at Bankruptcy Experts Port Stephens on 1300 795 575, or visit: www.bankruptcyexpertsportstephens.com.au