Can I travel internationally?
Yes. All you need to do is apply to your bankruptcy trustee for permission to go. You’ll get it, but there is a one-page form you will need to fill in simply to notify the trustee of how long you will be traveling, etc. This measure is really only there so high flyers don’t skip the country. Sometimes the trustee will call for your passport, but don’t worry about it because you can ask for it back when you want to travel. Call us if you need to know more about travel on 1300 795 575.
Can I keep my home?
Oftentimes the answer is yes! In point of fact, in many cases these days we can help you keep your house. At Bankruptcy Experts we are specialists at assisting people keep their houses. It’s potentially very complicated, so if you are concerned about losing your home call us on 1300 795 575 and we will walk you through your choices.
The thought of losing the family house is probably the most significant hindrance to people filing for bankruptcy. We talk to people day after day who have battled for years under enormous financial tension so they don’t lose their home.
So how is it possible to become bankrupt and keep your house? Simple, really; it’s a matter of equity. Let’s put it like this, if you have a house that’s worth $350,000 and you owe the bank $350,000 you effectively have no equity in the house, correct? The trustee will only sell off your house if there is enough equity in the home if sold to pay back a number of your debts. So in this particular case, the trustee will then offer you some alternatives, one of which is to simply to continue paying the mortgage and live in the house while you are bankrupt.
So how can I learn the market value of my home? A straightforward way is to go onto realestate.com. au and check out the sold houses tab in the Northern Rivers area and it will show you all the recent sales in your area. Another option, if you are confident or are very worried, is to have a registered valuer do a valuation on your home, not a real estate agent (unless they are registered valuers, of course). Be advised this will cost you somewhere between $300-700. Just one more thing about house values. If the trustee needs to sell your house they do so reasonably quickly. It’s not a 6-month sleek marketing campaign and instead it’s usually by auction and they just meet the market on the day and that’s it. So when thinking of the value remember it’s a sell now price, not when the market picks up.
Once you have identified the resale value of your house the next thing to look into is ownership.
Generally most home loans are between 2 people as joint tenants who both contribute to the home loan. If only one party is filing for bankruptcy then the equity is worked out like this.
Say your home is worth $400,000 and the current price is $350,000. Then the remaining equity in the home is $50,000, right? Half of that total equity is automatically assigned to the party not going bankrupt, leaving $25,000 for the bankrupt. Out of that $25,000 the bankrupt party has to pay for all of the selling costs including advertising etc., which, depending on where you live, can cost anywhere between $12,000-20,000. In this particular case say the selling costs are going to be $15,000 then the remaining left over after the sale is $10,000. So in this case the trustee will give the non-bankrupt party a variety of options. One of which is common is for the bank to say, “Pay us the $10,000 and we won’t sell the house and you will have it eliminated as an asset from the bankrupt’s estate.” Or, in other words, negotiate to pay the $10,000 and you can keep the house.
Just a side note: the bank who has given you the mortgage will want the repayments to be maintained obviously. No matter what the trustee decides, if you don’t pay the credit union the mortgage they will ultimately ask you to leave. So, in plain english, keeping the house naturally implies keeping the mortgage also.
There are many more options with your home, and we have just detailed one option of potentially 20 solutions you can select from, when it pertains to your house. We understand you have to get this right. Gambling with the family home can possibly be an overwhelming business. If you intend to get the correct advice or you just want to talk to someone give us a call on 1300 795 575.
When would my overseas travel be hampered?
Your international travel would be prohibited by the trustee as a result of adverse legal action. For example, if your bankruptcy is a part of a criminal investigation or fraudulent activities, it’s possible the trustee will restrict your travel.
What happens to my credit rating?
Bankruptcy lasts 3 years and will sit on your credit file for that time. Nevertheless, just like any default it will appear on your credit file for 7 years. You can have it taken off if you get your bankruptcy annulled.
Will I ever have the capacity to borrow money again once I’m bankrupt?
Bankruptcy is for 3 years, and in that time you will not get a loan. After the 3 years is elapsed you will have the ability to get loans; you just won’t get the very best rate. Your credit report will be wiped clean 4 years after you have been discharged as a bankrupt then you will have a perfect credit record again and you will get the best deal on loans.
Will I lose my car if I go bankrupt?
Ordinarily no. Bankrupts almost never lose their cars because they’ve gone bankrupt. Naturally, this is conditional and we can let you know if yours is safe. Contact Bankruptcy Experts Northern Rivers on 1300 795 575.
There is a threshold or amount of wholesale value your car can possibly be worth while you are bankrupt, which is $7,350. You will find all kinds of erroneous information about this on the net, but here are the facts. That $7,350 represents not the total value; it represents equity. So, in other words, if you have a car worth $35,000 you are repaying or leasing and the amount you could sell it for is $30,000 then you can keep your car because its equity is only $5,000. The company that gave you the loan for the car will be pleased for you to keep the car although you are bankrupt provided that you keep up the payments.
What happens to my Centrelink debts if I go bankrupt?
As a general rule we have always told our potential clients not to count on having your Centrelink debt written off when you declare bankruptcy, however it seems more and more this is not the case.
In most cases it has been our experience that Centrelink will not pursue you for your Centrelink debts*(which is also outlined on the Centrelink website – see link below) for the three years you are bankrupt which is good news for those struggling week to week and need to file for bankruptcy to get some financial relief. What seems to be happening more and more lately is that they (Centrelink) may now just simply write the debt off at the end of the three years also. We had a client just the other day send us a Centrelink letter (See below) stating that not only that they wont pursue the debt for the 3 years of bankruptcy but also that they wont chase you for the debt after you have been discharged. In other words you wont ever have to pay back your Centrelink debt if you file for bankruptcy.
What if I’m behind on my car repayments and I go bankrupt; will they take my car?
Get some advice on this one. If you need some advice right now just call 1300 795 575. Basically, you will get about 2 to 3 payments grace when it comes to car loans. The bottom line is simple: whether you are bankrupt or otherwise, if you miss 3 or more repayments on your car loan the bank will repossess the car. Don’t think because you are going bankrupt you are automatically going to lose your car because most of the time we help people keep them.
When are the creditors notified of my bankruptcy?
The creditors, or the people you owe money to, are notified in writing at about the same time you receive your bankruptcy file notification.
Will anyone come to my house?
No. The bankruptcy procedure is basically a paperwork exercise. All that actually takes place is you will either be written to or emailed a letter informing you that you are bankrupt. At Bankruptcy Experts Northern Rivers we make sure that this entire process is that simple, so if you have concerns about this phone 1300 795 575.
Can I have my bankruptcy annulled?
Yes. This process will take about 2 weeks and will totally clear away the bankruptcy from your credit history. There are provisions within the Bankruptcy Act that enable a bankrupt individual to have their bankruptcy annulled through a Section 73 proposal.
The effects of creditor’s claims can often result in bankruptcy, despite whether or not it was the individual’s preference to enter bankruptcy, or if it was filed by a creditor. However, bankruptcy is far from the end of the world for the person who undergoes bankruptcy.
We have been assisting people in the Northern Rivers area for many years so contact us today on 1300 795 575 to get some guidance on this matter. We exercise the most suitable possible strategy for you to get back up and running, minimizing residual effects and hindrances of past financial circumstances to give you the best possible result. Having experience and skills specialising in Section 73 proposals, we can combine this with our proven techniques and tactics to bring you through bankruptcy unscathed, ready to start over.
Can I get my bankruptcy annulled?
Firstly, having your bankruptcy annulled is essentially reversing it 100 %. So if you are contemplating you would like to have your bankruptcy annulled there are a few things you should know.
Firstly, how does the annulment work? A simple way to comprehend it is let’s say someone owes you $50,000 and they haven’t paid you one penny back for years. Then to make things worse you learn that they have gone bankrupt. You would kiss that money goodbye, right? Many years pass and they approach you with an offer to pay you $5,000 that their aunty is giving to them to settle your debt with them. Undoubtedly you are happy to accept it, because it is better than a kick in the teeth. The only condition they request in return is that you agree to have the bankruptcy wiped from their credit file, and if you don’t agree to do that then there will be no $5,000. Naturally you don’t care about their record; you are just grateful they are offering you some money after all these years.
In bankruptcy terms this procedure is typically described as a Section 73 proposal, and it’s an approach where “everybody wins.”.
Essentially the trustee contacts your creditors, proposes your offer, which is considerably less than the original amount owed, on the condition they wipe your credit file clean.
This approach takes a few weeks. The proposal could be done at any moment in the 3 years you are bankrupt. However, you have to bear in mind the timing of your proposal. Because it does cost money to do this, you need to make certain the odds are on your side. As an example, if you are paying back money to the trustee each week because you earn over the threshold amount, then your creditors will know they are going to get a certain amount from you over the 3 years anyway so it better be more than that will add up to.
If you have only been bankrupt 3 weeks it will be more challenging to get an annulment because they may get some cash from you over the 3 years if you earn over the threshold sum of money.
If you want assistance to put a section 73 proposal to your trustee or just desire more information about the timing of when to put an offer forward, just call us on 1300 795 575.
Can I file for bankruptcy if I’m already in a Debt Agreement or Personal Insolvency Agreement or in a Consolidation Loan Contract?
Yes! We can assist you finalise all of these agreements. With Debt Agreements and Personal Insolvency Agreements we have to have you discharged from them first before you declare bankruptcy, but it’s not a problem. If you are tied into one of these and simply can’t get on top give us ring at 1300 795 575.
What debts won’t bankruptcy erase?
There are very few debts that bankruptcy won’t 100 % eliminate, like Centrelink, child support, HECS and a court-imposed fine (speeding fines, etc.) and, finally, money owed to an insurance company as a result of a car accident in an uninsured car that you were driving.
Other than that, it will eliminate things like your credit cards, store cards, GST and tax, unsecured personal loans, etc. In truth, there are too many things to list so if you have a particular debt you are concerneded about just ask for a free consultation 1300 795 575.
Is there a limit to the amount of debt I can go bankrupt for?
You can’t go bankrupt for an amount under $5,000; however, there is no limit above that. If you owe a few million dollars, that’s dealt with no differently than $20,000.
What is the difference between a secured and unsecured debt?
An unsecured creditor is a creditor who does not have a security the chattels/assets/property acquired with the credit afforded to you. Such liabilities include credit card debts.
A secured creditor has a hold over the chattels/assets/property until the debt is paid in full. If a debtor defaults on a secured loan, the creditor has the right to repossess and sell the chattels/assets/property to pay down the debt.
How can I make sure that you will be successful in making me bankrupt?
We have helped countless people apply for bankruptcy over the years and we have never had anyone’s application rejected. That’s why we offer a 100 % money back guarantee.
Suppose I’m not completely sure who I owe money to?
There is a straightforward strategy we use here, and all you need to do is get a copy of your credit file as it will have your credit history on there. Companies like www.veda.com.au will be able to get you a copy for a modest fee.
I’ve had a motor vehicle accident. Will the debt be covered in bankruptcy?
Car accidents may be complicated, so to keep it simple call us on 1300 795 575 to get the right advice on your situation. However, as a general rule, if you were driving a car that was not insured then the cost of the repairs is not erased with bankruptcy. Having said that, it depends who admitted liability or who was at fault. If you go to court and the court validates you were not at fault then you should be good.
Can I have business debts wiped out with my bankruptcy also?
Yes! We can help you accomplish this, although it’s possible there are effects and plenty of regulations around this procedure, so phone us and we will guide you through the procedure on 1300 795 575. Bankruptcy Experts Northern Rivers are professionals at helping businesses get back on their feet.
Can I pay out my bankruptcy debt and have it annulled?
Yes. There is a course of action to follow, but if you win lotto or inherit some cash you can use it to get your slate wiped clean. There is a way of accomplishing this properly; just give us a call first.
What if someone is bankrupting me; is there anything I can do?
Generally, if you owe money to someone they can get a court order and bankrupt you. They need to follow a procedure, but it is possible. What you need to avoid at all costs if possible is someone else bankrupting you, as it’s always best to voluntarily declare bankruptcy. Unless you enjoy court cases and annoying phone calls, of course.
What if my company has received a Demand or Wind-Up notice; can I still go bankrupt?
Yes. However, this is a challenging process and we suggest you get some expert advice; if its handled incorrectly, it could be disastrous. For a free consultation contact Bankruptcy Experts Northern Rivers 1300 795 575.
Do I need to contact my creditors?
No, we do that for you. As a matter of fact, we work as a buffer or a midway point between you and your creditors. So essentially you are not required to advise them of your bankruptcy; we do that for you.
How long does bankruptcy last?
How long does it take to file for bankruptcy?
Usually, it takes about 2 weeks.
What if someone else signed for a loan (joint loan or guarantor) and I go bankrupt; will they still be liable for the debt?
Yes. Generally a lender will pursue the other person who signed the loan papers with you for the full amount of the remaining debt owing on the loan.
What happens to a debt I failed to remember at the time of becoming bankrupt?
Don’t panic! If you forgot about a debt and remember it later, just contact your trustee with the name of the creditor, address, date the debt was incurred, sum of debt and any account or reference number/s supplied by the lender. Your trustee will add the creditor to your bankruptcy and mail a notification to the creditor.
Do I have to go to court if I go bankrupt?
No. We handle the entire procedure for you.
What if I have gambled some of my funds and I go bankrupt; will I get in trouble?
Usually this is not a problem, so if you are a gambler, don’t worry. What the trustee doesn’t like is inconsistency here. In other words, you have never taken a chance in your life and all of a sudden you lost $50,000 on the horses, then you might have some explaining to do, of course, because it just doesn’t add up.
Can my bankruptcy be carried out the phone?
Yes. We understand you are busy. If you have a phone we can help you; simply phone us on 1300 795 575.
What if I’m living overseas; can I still go bankrupt?
Yes. This is feasible. It necessitates some emails back and forth but it can be done.
Can I include my international debts in my bankruptcy?
Yes. If a person originally staying in another country is now residing in Australia files for bankruptcy and they have a debt incurred in that foreign country, you simply register that debt on the paperwork.
In many cases the creditor overseas will wipe out the debt. It is possible and legal for them, however, to reject your application, and if you return to that country you may be subject to their bankruptcy laws.
How will the trustee know what assets I have?
There are a few ways the trustee can determine, and the most ideal and simplest way is for you to inform them when we do the paperwork. There is also a government register which has major assets listed also. You have to get some advice about assets; be careful.
Can I keep an inheritance if I file for bankruptcy?
This is complicated and you will need the correct advice, so if you need more information about inheritances call us on 1300 795 575.
Will I lose my Pension or Workers Compensation payments if I go bankrupt?
No. The income thresholds are the same for everyone so no matter how you earn your income you need to earn about $50,000 per year before your income will be affected by bankruptcy.
Will I have the ability to keep my income tax return once I’m bankrupt?
Yes, if you owe the ATO money. Put simply, if one of your debts is tax debt, then no, the Australian Tax Office will keep the cash you owe them.
No, if you do not owe the ATO money. Your tax return is considereded net income, so if you are under the threshold amount you can earn while bankrupt then you will get your whole income tax return back.
What about child support ?
If you need to pay child support, this money will be deducted from your net income, so what you have the ability to keep after you pay your tax and then child support is considered net income. That is why in the world of bankruptcy net income numbers are always quoted.
Can I buy shares and make investments while I’m bankrupt?
Yes, you are allowed even while you are bankrupt, but the trustee will take them off you, as they are deemed an asset.
What assets can I keep if I go bankrupt?
You can keep just about everything except big things like houses, cars, shares and inheritances. Even things like houses and cars may be able to be saved. Just give us a call before you make any bold decisions on 1300 795 575 for Bankruptcy Experts Northern Rivers.