If you are overcome by debt and you are checking out at Bankruptcy, there are 3 repercussions you have to consider to start with.
For the 3 years you are actually bankrupt you may be needed to chip in some of your income back toward your debt despite being bankrupt. (see table below).
This is really essential when it concerns Bankruptcy because If you do not provide from your salary like you are presumed to, the consequences are serious, your bankruptcy may be expanded until you do re-pay the required amount.
There are some points to consider with this aspect of your income though, firstly 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 after that child support, what’s left is simply 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 every week.
If one partner in a relationship is bankrupt the non-bankrupt partner can still earn any income since it’s not factored into the equation.
If you are self-employed or your cash flow is up and down the figure will be measured annually and not weekly. 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 file for bankruptcy?’ It is possibly simpler to picture it this way: Your household belongings are not going to be affected. The assets that you will lose will be major things like motor vehicles, 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 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 particular 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 since it is a complicated area of Bankruptcy, if you have concerns about assets because you are checking out Bankruptcy give us a call here at Bankruptcy Experts Hobart on 1300 795 575, or visit: www.bankruptcyexpertshobart.com.au
Your house may also be of concern for you, because you may have the chance to keep your house and still file for bankruptcy, When it comes to Bankruptcy though there is certainly a lot of contrary information out there, so do some online research and ensure that you actually understand what is going to happen. Give us a call if you want to know more about houses and Bankruptcy in Hobart.
The bottom line with bankruptcy and international travel is straightforward. If you get the best advice and file for bankruptcy properly initially, then you will not have a concern going overseas as frequently as you want while you are bankrupt.
The method is a basic online application you pay $150 and you are on your way.
If you are concerned about any of these issues In Bankruptcy about Assets, Income, Credit Rating, and travel limitations call us here at Bankruptcy Experts Hobart on 1300 795 575, or visit: www.bankruptcyexpertshobart.com.au