If you are staggered by debt and you are taking a look at Bankruptcy, there are undoubtedly 3 consequences you have to think about before anything else.
For the 3 years you are generally bankrupt you might have to chip in some of your income back toward your debt despite being bankrupt. (see table below).
This is really critical when it concerns Bankruptcy because If you do not provide from your salary like you are supposed to, the consequences are serious, your bankruptcy may be stretched until you do re-pay the demanded sum.
There are some factors to consider in this element of your income though, firstly if you pay any child support that comes out of your earnings first of all, so simply put your net income will be calculated once you pay your tax and after that child support, what remains is 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 in the hand each week.
If one partner in a relationship is bankrupt the non-bankrupt partner will be able to earn any income because it’s not factored into the equation.
If you are self-employed or your salary is up and down the figure will be worked out annually and not each week. If you earn over the limit 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 declare bankruptcy?’ It is possibly simpler to picture it this way: Your household belongings are not going to be impacted. The assets that you will lose will be large things like vehicles, boats, houses etc. You can 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 due 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 concerns about assets because you are looking into Bankruptcy call us here at Bankruptcy Experts Perth on 1300 795 575, or visit: www.bankruptcyexpertsperth.com.au
Your house may also be of concern for you, because you may have the chance to keep your house and still declare bankruptcy, When it comes to Bankruptcy though there is definitely a lot of contradictory information out there, so do some groundwork and ensure you actually know what is going to happen. Give us a call if you would like to know more about houses and Bankruptcy in Perth.
The bottom line with bankruptcy and international travel is easy. If you get the correct advice and file for bankruptcy properly to begin with, then you will not have a concern taking a trip overseas as frequently as you want even though you are bankrupt.
The process is a simple online application you pay $150 and you are on your way.
If you are worried about any of these concerns In Bankruptcy about Assets, Income, Credit Rating, and travel limitations give us a call here at Bankruptcy Experts Perth on 1300 795 575, or visit: www.bankruptcyexpertsperth.com.au