If you have debts that you cannot manage and are unable to pay your debts as and when they fall due, or cannot reach an informal or formal agreement with your creditors, bankruptcy may be your best option. It may be the only way to obtain a fresh start.
Nothing at all, we provide a no obligation phone consultation to enable us to understand your specific circumstances. All discussions are striclty confidential, whatever we discuss will not go any further. If after our discussion, you feel voluntary bankruptcy is your best option, we can supply further information on how to move forward and the exact cost.
The usual timeframe for a bankruptcy is 3 years. In some situations, it may be extended to 5 or 8 years but this is rare.
Once we receive all the required paperwork from you, we can usually have it prepared ready for you to check and sign within a few days. From there, it would take a further 2 weeks for your creditors to be notified and to receive your official letter of bankruptcy. Once this happens, your creditors are not allowed to contact you again and you can start living a normal life without worrying about the constant harassing phone calls.
You must seek approval of your trustee if you want to travel overseas during your bankruptcy period regardless of who your trustee is. In most cases, if you have a family emergency or you are required to travel for work, it may not be a problem however, it is important you contact your trustee to seek approval. If you decide to let All About Bankruptcy assist you with your bankruptcy application, we offer full support during your bankruptcy period. Simply call us anytime during this period and we can guide you, there are no further charges payable to All About Bankruptcy. From 1st April 2014, AFSA have imposed a fee of $150 for all overseas travel applications. This fee is only payable if AFSA is your Official Trustee.
Perhaps there will be nothing for you to pay. During your bankruptcy period, you can earn as much money as you like – there are no restrictions with regard to what you can earn. Income contributions when you’re an undischarged bankrupt will come into play once you earn over the living threshold. These thresholds change depending on if you have dependants and how many you have. For example, a person with 2 children would currently have a net income threshold of $70,913.75 net income per annum.
This figure is adjusted in line with living costs, usually on a bi-annual basis.The net payment is income after tax has been taken. Other factors are also considered such as maintenance payable and medicare charges. If your income reaches the threshold, for every $1.00 earned over the threshold amount, $0.50 would be payable to your trustee who will distribute these funds to your creditors accordingly. The other $0.50 would be yours to keep.
Bankruptcy protects normal household furniture and white goods, computers etc, however, if you have shares, antiques or any other valuable assets, these will come under the scrutiny of your trustee and are likely to be sold to help repay your creditors.
This will depend on many other variables. For example, if you own a house outright, then it is considered an asset and may be sold to repay your creditors. If you have little or no equity in your home, then chances are you can keep the home as long as you can keep the payments up to date. There are so many variables when it comes to property and suggest it best if the whole situation can be discussed so we can understand the full circumstances and advise you accordingly.
Currently, you are allowed to own a car up to the value of $7,800 wholesale or auction value. If you have finance on a vehicle, this is usually a secured loan and as such, you will be able to keep it if you choose to keep the payments up to date. If you have more than $7,800 in equity in the vehicle, this can be further discussed when you phone us.
Yes, all tax obligations and debts can be included
All About Bankruptcy can sort this out for you if you choose to let us assist you. Simply provide details of your lease, landlord etc and we can do the rest.
Perhaps there will be nothing for you to pay. During your bankruptcy period, you can earn as much money as you like – there are no restrictions with regard to what you can earn.
Income contributions will come into play once you earn over the living threshold. These thresholds change depending on if you have dependants and how many you have. For example, a person with 2 children would have an income threshold of $70,913.75 net income per annum. The net payment is income after tax and expenses have been taken.
The income thresholds are adjusted to allow for CPI increases, usually on a bi-annual basis. Other factors are also considered such as child support obligations and medicare income charges.
No, you cannot be a director of a company during your bankruptcy period however, you can operate your business as a Sole Trader under an ABN
If you decide that voluntary bankruptcy is your best option, it is important to include all debtors (entities which owe you or your business money) in your bankruptcy application.
Yes, you can operate a business under a sole trader ABN. As a bankrupt, if you trade under a business name you must disclose your bankruptcy status to everyone you deal with. It is advisable to trade under your own name to avoid the possibility of committing an offence under the Bankruptcy Act.
A debt agreement is a binding agreement between parties. It is where the debtor applies to their creditors to accept a payment plan that the debtor can afford.
All Debt Agreements must be lodged with a licensed Debt Administrator, therefore all payments are made directly to the chosen administrator.
Debtors can lodge a debt agreement proposal as long as they meet certain criteria.
Payments can be either weekly or monthly amounts. They can also be a lump sum following the sale of an asset, or a lump sum payment to be divided between multiple creditors.
Chances are you might have to consider cancelling your agreement. If this happens, your creditors have the right to continue seeking payment. Voluntary Bankruptcy may be the solution