If you are swamped by debt and you are checking out at Bankruptcy, there are normally 3 effects you need to look at to begin with.
For the 3 years you are generally bankrupt you may have to contribute some of your income back toward your debt despite being bankrupt. (see table below).
This is really essential when it involves Bankruptcy because If you do not provide from your salary like you are presumed to, the consequences are severe, your bankruptcy may be expanded until you do re-pay the demanded sum.
There are some points to consider in this element 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 determined once you pay your tax and then child support, what’s left is usually your net income.
If you are a couple and you both declare bankruptcy all of these figures are based upon individual incomes not combined so with no dependents each partner can earn $1,010.45 weekly.
If one partner in a relationship is bankrupt the non-bankrupt partner will be able to earn any income simply 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 weekly. If you earn over the limit amount weekly then you will be required to contribute weekly from your pay.
When people come to me concerning Bankruptcy I’m often asked ‘what assets will I lose when I apply for bankruptcy?’ It is possibly simpler to imagine it this way: Your household belongings are not going to be impacted. The assets that you will lose will be major things like cars, boats, houses etc. You are able to have 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 connected 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 because it is a complicated area of Bankruptcy, if you have questions about assets because you are checking out Bankruptcy give us a call here at Bankruptcy Australia on 1300 795 575, or visit: www.bankruptcy-australia.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 comes to Bankruptcy though there is certainly a lot of contradictory information out there, so do some research and see to it that you actually are aware of what is going to happen. Give us a call if you need to know more about houses and Bankruptcy in Australia.
The bottom line with bankruptcy and international travel is simple. If you get the best advice and declare bankruptcy properly initially, then you will not have an issue travelling overseas as frequently 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 worried about any one of these concerns In Bankruptcy about Assets, Income, Credit Rating, and travel limitations call us here at Bankruptcy Australia on 1300 795 575, or visit: www.bankruptcy-australia.com.au