If you are drowned by debt and you are checking out at Bankruptcy, there are undoubtedly 3 consequences you need to think about first.
For the 3 years you are actually bankrupt you may be needed to contribute some of your income back toward your debt despite being bankrupt. (see table below).
This is actually essential when it involves Bankruptcy because If you do not give from your salary like you are supposed to, the effects are severe, your bankruptcy may be expanded until you do re-pay the required sum.
There are some points to consider with this aspect of your income though, to start with if you pay any child support that comes out of your earnings immediately, so simply put your net income will be calculated once you pay your tax and then child support, what remains 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 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 can certainly 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 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 perhaps simpler to visualize 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 can 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 total value that matters in this case it’s the equity or the difference 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 concerns about assets because you are looking into Bankruptcy phone us here at Bankruptcy Experts Mackay on 1300 795 575, or visit: www.bankruptcyexpertsmackay.com.au
Your home may also be of concern for you, since you may have the chance to keep your house and still file for bankruptcy, When it concerns Bankruptcy though there is definitely a lot of unclear information out there, so do some groundwork and ensure 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 Mackay.
The bottom line with bankruptcy and overseas travel is clear. If you get the best advice and file for bankruptcy properly to begin with, then you will not have a problem going overseas as frequently as you want while 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 issues In Bankruptcy about Assets, Income, Credit Rating, and travel limitations contact us here at Bankruptcy Experts Mackay on 1300 795 575, or visit: www.bankruptcyexpertsmackay.com.au