An incredibly common question we come across is the fear that you will no longer be able to generate an income during Bankruptcy, in Australia. While there are certain stipulations, you are free to earn as much as you like. Talking to us about the pros and cons of going bankrupt can help alleviate your concerns and fast track you on your path to financial freedom.
The Income you can earn is calculated for each individual based on the number of dependents and adjusted upwards by the government (AFSA) in March and September each year to allow for movements in the cost of living. Talk to us to find out the best solution for you.
Not necessarily, it is possible to keep your family home subject to meeting the requirements of your Bankruptcy Trustee. For example if you owned the family home jointly with your wife or partner and the property is valued at $500,000 and you have a loan against property for $475,000 then you have $25,000 in equity.
That equity is not all yours it belongs 50/50 with your partner. Therefore your trustee will require you to pay or raise from either your partner, family or friend $12500. If this can be achieved and you and your partner can still make the loan repayments then yes you can save your house. You will no longer own the property that will now belong to your wife/Partner.
Our experts are happy to answer any questions you may have.
Not necessarily. A vehicle with a value or equity to the threshold of $7,900 may be retained. A vehicle with the value/equity over the threshold may be purchased from the Trustee by a family member/friend.
For example if you had a car valued at $30,000 and you had a loan against the vehicle for $23,000 then you have $7000 worth of equity you can therefore keep the car if you could still make the loan repayments.
Peter a self- employed bricklayer from Mandurah had incurred a large ATO debt, behind with his credit cards and personal loans payments and because of the down turn in the building industry was unable to maintain a consistent income.
Peter was petrified to go bankrupt because of the stories he was hearing from numerous people in his industry. But after a chat with the friendly Bankruptcy Advisory Centre staff, to learn the truth about Bankruptcy. Peter decided to lodge his Bankruptcy papers and now consistently tells us life has never been better.
An ATO debt was not going away and the phone calls for overdue credit card, personal loan and car loan payments were a consistent worry for Ben who had recently split with his partner and with the added worry of not been able to support his two young children Ben becoming quite depressed.
A friend suggested he speak to Bankruptcy Advisory Centre. The result moved Ben into Bankruptcy provided him with a small surplus income which helped with his child support and he was able to keep his car which was under finance. Ben is now a much happier person.