Yes, you can. You will just need to apply to your bankruptcy trustee when you wish to travel. You will get approved, however there is a one-page form you will need to fill out. This form just asks for basic information such as where you will be travelling to and for how long. This rule exists to ensure high flyers don’t skip the country. At times, the trustee may request your passport, but this can be given back if and when you wish to travel. If you’d like to know more about travel, contact us on 1300 795 575.
Your travel would be prohibited by the trustee due to legal action. For example, if you’re declaring bankruptcy is a part of a criminal investigation or fraudulent activities, it’s possible the trustee will restrict your travel.
Generally, the answer is yes! Many cases these days, you are able to keep the family home. It can however be tricky in certain situations, which is why at Bankruptcy Experts we are professionals at ensuring clients can keep their home and we can guide you through your options.
One of the main reasons people put off going bankrupt is the thought of losing their home. We talk with clients each and every day who have struggled with their monthly payments just to try and keep their home.
How can you keep your home? It mainly comes down to equity within the home. As an example, if you own a home worth $350,000 and you owe the bank $350,000 then there’s no equity in the home. The trustee will only want to sell your home if there is enough equity in the home so if sold, a number of your debts can be repaid. In this case, the trustee will offer you some choices, one of which is to keep the home so long as you can continue to pay the mortgage and you stay in the home whilst you’re bankrupt.
How do you know how much your home is worth?One of the easiest ways to find this out is to go to a website such as www.realestate.com.au and search for homes in your area with the same amount of bedrooms and features as your home. This will give you a general idea of how much your home could be worth. Another option is to get a registered valuer to do a valuation of your home, not a real estate agent (unless they are a registered valuer, of course). Just be aware though that this could cost you between $300-$700.
If the trustee does sell your home, it’s worth noting that the home will be sold reasonably quickly. The home isn’t subjected to a fancy 6 month marketing campaign, but rather is sold typically by auction. So, the value will be a sell now price, not when the market improves.
When you have worked out the value of the home, you should then look into who owns the home.
When a lot of people are considering bankruptcy, a lot of the time the home loan is between two people as joint tenants who are sharing the responsibility of the home loan repayments. If only one person is declaring bankruptcy, the equity is worked out as follows.
Say your house is worth $500,000 and the current market value is $450,000. Then the balance of equity in the home is $50,000, right? Half of that total equity is allocated to the person declaring bankruptcy. Out of that $25,000 the declaring bankruptcy party has to pay for all of the selling costs including advertising etc., which, depending upon where you reside, can vary considerably and cost anywhere between $12,000-20,000. For this example, let’s say the selling expenses are going to be $15,000, so the remaining left over after the sale is $10,000. In this case, the trustee will give the non-declaring bankruptcy party several 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, work out a deal to pay the $10,000 and you can keep the house.
Just a side note: the financial institution who has given you the property loan will need the payments to continue. No matter what the trustee decides, if you don’t pay the financial institution the property loan they will eventually ask you to leave. So, in plain English, keeping your home obviously implies keeping the mortgage as well.
There are often many options with owning and keeping your home and applying for bankruptcy. What we have outlined here is just one option when there could potentially be 20 other alternatives, depending on your circumstances. You will want to get this right as making the wrong decision and losing the family home can be quite devastating to all involved. If you want to get the right advice about declaring bankruptcy, There are many more options with your house when declaring bankruptcy, so it is best to talk to us by giving give us a call on 1300 795 575.
Bankruptcy lasts 3 years and will sit on your credit file for that time. After the first 3 years, you are then considered an “ex-bankrupt” or “discharged bankrupt”. However, as with any default on your credit file, this will remain on your credit file for 7 years in total. You can have it removed if you get your bankruptcy annulled.
In the initial 3 years of becoming bankrupt, you won’t be able to get a loan. After the first 3 years and you are an ex-bankrupt, you will be eligible to get loans, however these are often at a higher interest rate than a standard loan. After 4 years of being a discharged bankrupt, your credit file will be wiped clean and will have an ideal credit rating once again. From here, you’ll be able to get the most competitive deal on loans again.
Typically no. Bankrupts hardly ever lose their cars because they’ve filed for bankruptcy. Obviously, this is conditional and we can let you know if yours is safe. Call Bankruptcy Experts Bendigo on 1300 818 575.
There is a threshold or amount of wholesale value your car could be worth while you are declaring bankruptcy, which is $7,350. You will find all kinds of erroneous information about this on the internet, but here are the facts. That $7,350 represents not the total value; it represents equity. So, simply put, 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 lent you the loan for the car will be pleased for you to keep the car even though you are bankrupt as long as you keep up the payments.
You will be best to get some advice on this one. You generally get two to three payments grace when it comes to car loans. Simply put, whether you’re declaring bankruptcy or not, if you miss three or more payments on your car loan they will repossess the car. Don’t think that just because you’re declaring bankruptcy that you’re automatically going to lose your car. In most cases, we help people to keep their car. If you’re considering going bankrupt, or even if you just want some advice, call us today on 1300 795 575.
At the same time you receive your bankruptcy file number, your creditors and people you owe money to will be notified in writing.
At the same time you receive your bankruptcy file number, your creditors and people you owe money to will be notified in writing.
Yes. This process will take about 2 weeks and will entirely get rid of 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 repercussions of creditor’s claims can often result in bankruptcy, regardless of regardless if it was the individual’s choice to enter bankruptcy, or if it was filed by a creditor. Nevertheless, bankruptcy is far from the end of the world for the person who undergoes bankruptcy.
We have been assisting people declaring bankruptcy in the Bendigo area for several years so phone us today on 1300 818 575 to get some insight on this matter. We exercise the most suitable possible strategy for you to get back up and running, eliminating residual effects and hindrances of past financial circumstances to give you the best possible outcome. Having experience and skills specialising in Section 73 proposals, we can combine this with our proven strategies and methods to bring you through bankruptcy unscathed, ready to start over.
To start with, having your bankruptcy annulled is practically reversing it 100 %. So if you are contemplating you would like to have your bankruptcy annulled there are a few things you have to know.
Firstly, how does the annulment work? A simple way to understand it is let’s say someone owes you $50,000 and they haven’t paid you one cent back for years. Then to make things worse you find out that they are declaring bankruptcy. You would kiss that money goodbye, right? Years pass and they come to you with an offer to pay you $5,000 that their grandparents is offering to them to settle your debt with them. Undoubtedly you are happy to take it, because it is better than nothing. The only condition they ask for in return is that you agree to have the bankruptcy cleaned from their record, and if you don’t agree to do that then there will be no $5,000. Of course you don’t care about their credit file; you are just happy they are offering you some money after all these years.
In bankruptcy terms this technique is usually described as a Section 73 proposal, and it’s an approach where “everybody wins.”.
Essentially the trustee contacts your creditors, presents your offer, which is substantially less than the original debt owed, on the condition they clear your credit file clean.
This process takes a few weeks. The proposal can be done at any time in the 3 years you are bankrupt. However, you have to consider the timing of your proposal, you don’t want to do it the day you are declaring bankruptcy, because it does cost money to do this, you want to ensure the odds are on your side. For example, if you are repaying money to the trustee each week because you earn over the threshold amount, then your creditors will know they are going to receive 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 difficult 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 need more details about the timing of when to put an offer forward, just phone us on 1300 818 575.
Yes! We can assist you cancel all of these agreements. With Debt Agreements and Personal Insolvency Agreements we will need to have you discharged from them first before you go through the pain of declaring bankruptcy, but it’s no problem. If you are locked into one of these and simply can’t get on top give us call at 1300 818 575.
There aren’t many debts that declaring bankruptcy won’t 100% eliminate, such as Centre link, child support, HECS and a court-imposed fines (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.
Besides that, it will remove things like your credit cards, store cards, GST and tax, unsecured personal loans, and so on. In reality, there are a lot of things to list so if you have a particular debt you are concerned about, just call for a free consultation 1300 795 575.
You cannot file for bankruptcy for an amount less than $5,000; however, there is no limit above that. If you owe a couple million dollars, that’s managed no differently than $20,000.
An unsecured creditor is a creditor who does not have a hold over the chattels/assets/property gained with the credit given to you. An example of such a debt includes credit card debts.
A secured creditor has a hold over the chattels/assets/property until the debt is paid out in full. If a debtor defaults on a secured debt, the creditor has the right to repossess and sell the chattels/assets/property to pay down the debt. One such example is a secured car loan. If the loan isn’t paid, the car can be repossessed.
We have many years experience in this field and have helped thousands of people go through the process. In fact, we’ve never had anyone’s application rejected. It is for this reason that we offer a 100% money back guarantee.
We have a basic method here and all you need to do is get a copy of your credit history report. Companies such as www.veda.com.au can get you a copy for a small fee.
Vehicle accidents can be difficult, so to make things easier call us on 1300 795 575 to get the right advice on your personal situation. Declaring bankruptcy may not be the right option. However, as a general rule, if you were driving a motor vehicle that was not insured then the expense of the repairs is not eliminated when going bankrupt. However, it also depends on who admitted liability or who was at fault. If you go to court and the court confirms you were not at fault then this should all be fine.
Yes! We can help you go through this, although it is possible there are many regulations around this process, so it is best to phone us and we will direct you through the procedure on 1300 795 575. Bankruptcy Experts are professionals at helping businesses get back on their feet.
Yes. There is a procedure to follow, but if you gain some funds such as by winning the lotto or you inherit some cash, you can use it to get your slate wiped clean. We can help you to do this properly.
Yes! We will be able to help you to cancel any other agreements you have in place in order to declare bankrupt. We can assist you cancel all of these other agreements. With Debt Agreements and Personal Insolvency Agreements we will need to have you discharged from them first before you go through the pain of declaring bankruptcy, but it’s not a problem. Give us call at 1300 795 575 to assist you further.
Generally, if you owe money to a lender they can get a court order and make you go bankrupt. They have to follow a process, but it is certainly possible. What you need to avoid at all costs, if possible, is someone else bankrupting you, as it’s always best to voluntarily file for bankruptcy. Unless you enjoy attending court and annoying phone calls, of course.
Yes. However, this is a challenging process and we suggest you get the right advice as soon as possible before declaring bankruptcy; if it’s handled incorrectly, it could be disastrous for your business. For a free consultation call Bankruptcy Experts 1300 795 575.
No, we will actually do all of that for you. We serve as a buffer or a midway point between you and your creditors, so we can handle everything for you. You’re not obligated to notify them of your bankruptcy, we can help take care of that for you.
Usually, it takes about 2 weeks.
Yes. Usually a lender will pursue the other person who signed the loan documents with you for the sum total of the outstanding money that is owing on the loan.
Don’t worry! If you forgot about a debt and remember it later, just call your trustee with the name of the creditor, address, date the debt was incurred, amount of debt and any account or reference number/s supplied by the lender. Your trustee can then add the creditor to your bankruptcy and send a notification to the creditor.
No. We deal with the entire procedure for you.
Ordinarily this is not a problem, so if you are a gambler, do not fear. What the trustee doesn’t like is inconsistency here. Basically, if you have never gambled in your life and then out of the blue you lose $50,000 on the races, then you might have some explaining to do, of course. Simply, because it just doesn’t add up.
Yes. We understand you are busy. If you have a phone we can help you; simply give us a call on 1300 795 575.
Yes. This is still possible. It just requires some emails back and forth but it can still be completed.
Yes. If a person originally living in another country is now residing in Australia, files for bankruptcy and they have a debt incurred in a foreign country, you just list that debt on the paperwork.
In most cases the creditor overseas will wipe out the debt. It is possible (and legal) for them to reject the application, and if you return to that country you may be subject to their bankruptcy laws.
There are a few ways the trustee can find out, and the most effective and simplest way is for you to tell them when we do the paperwork. There is also a government website which has major assets listed also. It is best for you to get some advice about assets; be careful.
This can be a complicated area and you will want the right advice, so if you need more information about inheritances give us a call on 1300 795 575.
No, you won’t. The income thresholds are the same for everyone so no matter how you receive your income, you have to be earning about $50,000 each year before your pay will be affected by bankruptcy.
Yes, if you owe the tax office money. Put simply, if none of your debt is tax debt, then no, the tax office will keep the cash you owe them.
No, if you don’t owe the tax office money when declaring bankruptcy then you should be OK. Your income tax return is viewed as net income, so if you are below the threshold amount you can earn while bankrupt then you will get your entire tax return back.
If you need to pay child support, this money is deducted from your net income, so what you to keep after you pay your tax and child support is considered net income. This is why when declaring bankruptcy, the net income numbers are always quoted.
Yes, however it’s not ideal. You are allowed even while you are declaring bankruptcy, but the trustee may take them off you, as they are deemed an asset.
You can keep just about everything when declaring bankruptcy except large assets like houses, cars, shares and inheritances. However, even things like houses and cars can be saved. Just give us at Bankruptcy Experts a call before you make any rash decisions on 1300 795 575.