If you are overcome by debt and you are having a look at Bankruptcy, there are normally 3 effects you have to look at to begin with.
For the 3 years you are bankrupt you may have to contribute some of your income back toward your debt despite being bankrupt. (see table below).
This is actually significant when it involves Bankruptcy because If you do not give from your salary like you are presumed to, the repercussions are serious, your bankruptcy may be expanded until you do re-pay the demanded sum.
There are some points to consider in this aspect 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 then child support, what’s left is normally your net income.
If you are a couple and you both declare bankruptcy these figures are based upon individual incomes not combined so with no dependents each partner can earn $1,010.45 per week.
If one partner in a relationship is bankrupt the non-bankrupt partner can still earn any income because it’s not factored into the equation.
If you are self-employed or your cash flow 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 apply for bankruptcy?’ It is probably simpler to think of it this way: Your household belongings are not going to be impacted. The assets that you will lose will be large things like motor vehicles, boats, houses etc. You can 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 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 Cassowary Coast on 1300 795 575, or visit: www.bankruptcyexpertscassowarycoast.com.au
Your home 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 contrary information out there, so do some investigation and make certain you actually understand what is going to happen. Give us a call if you want to know more about houses and Bankruptcy in Cassowary Coast.
The bottom line with bankruptcy and overseas travel is clear. If you get the correct advice and file for bankruptcy properly from the beginning, then you will not have an issue taking a trip overseas as frequently as you want whilst you are bankrupt.
The process is a basic online application you pay $150 and you are on your way.
If you are concerned about any one of these concerns In Bankruptcy about Assets, Income, Credit Rating, and travel limitations call us here at Bankruptcy Experts Cassowary Coast on 1300 795 575, or visit: www.bankruptcyexpertscassowarycoast.com.au