FREEDOM

Personal bankruptcy should not be seen as a negative, but as a new beginning.

Personal bankruptcy is a legitimate and fast way to obtain a fresh start. The bankruptcy act is there for a reason, to protect you from your creditors when you are insolvent. If you are unable to pay your bills as and when they fall due, you are in fact insolvent. Clear the slate – bankruptcy is not as scary as you think.

Contact Us

Fix your future

There can be many reasons why you may find yourself in a tough financial situation. It may be related to family or health issues, loss of income through job loss or less working hours, a change in business conditions, inability to provide for tax obligations – the list goes on. Most people we speak with are genuine hard working individuals who have, for various reasons found themselves cornered in a financial tangle, often through no real fault of their own. If you can’t meet the repayments on your debts or you find yourself robbing one credit card to pay the minimum fee off another credit card then no doubt you can relate to that feeling of being backed into a financial corner. Let us help you move out of that dark corner and return to living without the negativity of financial distress. Personal bankruptcy may be your best solution.

No matter how bad you think your situation may be, the bankruptcy act is here to protect you and can provide instant debt relief. We are here to assist and advise you within the unfamiliar territory of completing and lodging your voluntary bankruptcy if that is your best option. At All About Bankruptcy, our service includes client support for the natural term of your personal bankruptcy – no additional fees apply. Most people appreciate knowing they are not alone during the personal bankruptcy period. We are here to guide you whenever needed.

If you are considering your options,

ASK YOURSELF THESE QUESTIONS:

Do I have debts I can no longer manage?
Are my debts creating personal stress and/or depression?
Is my financial situation stopping me from sleeping well?
Am I insolvent?
Are my money problems creating issues with my relationships?
Is my income less than my minimum monthly outgoings?

If any of these symptoms apply to you, you need to act. Remember, All About Bankruptcy offers a no obligation free phone consultation. Take advantage of it – no situation is too complex. We are here to help you whenever you are ready to take the first step of addressing your financial problems.

FREE CONSULTATION 1300 56 93 43

THE FACTS ABOUT BANKRUPTCY

There are many facts you should know when considering voluntary personal bankruptcy. This will enable you to make an informed decision and determine if this is the best solution for your financial situation.

Discover More

If you are unable to pay your current debts, therefore considered insolvent and you are contemplating entering into voluntary bankruptcy, these are some of the facts you should be aware of.

When applying for voluntary personal bankruptcy, you must list ALL known debts. Failure to reveal debts that you are aware of can have serious ramifications – your bankruptcy period could be extended. If it’s a simple mistake and you become aware of a debt which was incurred prior to becoming bankrupt, then you must contact your trustee and make them aware of the debt.

Often, due to the stress associated with the pressure prior to becoming bankrupt, it can be difficult to keep track of some debts therefore it’s important to notify your trustee as soon as possible once aware of any forgotten debt or debts as explained above.

Once you are officially bankrupt, your creditors will be notified and they will no longer be allowed to contact you or hassle you for payment.

There is a difference between secured and unsecured loans. Unsecured loans are usually credit cards and some personal loans along with others. Secured loans are loans provided with security on an asset. Vehicle loans are usually secured on the car just as a mortgage is secured on your house.

If you choose to keep your car (which is financed and is a secured loan) once bankrupt, it is important that payments are kept up to date. Of course you must also adhere to the equity ratios of the asset versus your loan.

In most cases, there is no need or requirement for you to have to go to court when filing for bankruptcy.

What’s important is that you are honest in declaring all debts and assets when lodging your bankruptcy application. Failure to do so may incur serious consequences. It’s equally important not to obtain credit or loans if you are aware that you’re not in a financial position to repay. Doing so may be an offence under the Bankruptcy Act and you could be prosecuted.

Keep in mind, at All About Bankruptcy we are here to help our clients through for the duration (usually 3 years) of the bankruptcy period. If you have any concerns or queries during this time regarding your personal circumstances in bankruptcy, we are just a phone call away!

THRESHOLDS

Vehicles READ MORE

Anyone who is bankrupt is allowed to own a vehicle up to the value of $8,000. This also applies to any equity the bankrupt may have in a vehicle. For example, if you have a secured loan on a car and you owe $12,000 but the car is valued at $19,000, you are allowed to keep this vehicle as long as you maintain the payments to the creditor.

This amount is updated each financial year.

Dependants READ MORE

A person is considered to be a dependant if they earn less than $3,683 per annum.

For example, let’s say you have a 15 year old child living with you. This child has a part-time job and earns $50 per week. The total income of this child falls below the allowable amount therefore would still be considered as a dependant.

This limit is updated quarterly.

Income READ MORE

The current income thresholds are set out below.

It is very important to note that earning above this amount is perfectly ok. There is no limit on what you can earn during your bankruptcy period. It simply means that during your bankruptcy, if you earn over the current thresholds, for each dollar earned, $0.50 of each dollar earned will be payable to your trustee to distribute accordingly and the other $0.50 is yours to keep. In some circumstances, income contributions may mean that you pay your way out of bankruptcy early.

0 Dependants            Net Annual Income $58,331.00
1 Dependant              Net Annual Income $68,830.58
2 Dependants            Net Annual Income $74,081.37
3 Dependants            Net Annual Income $76,996.92
4 Dependants            Net Annual Income $78,163.54
Over 4 Dependants   Net Annual Income $79,330.16

These limits are updated twice a year.

Tools of Trade READ MORE

If you own tools which are used to earn your living, you are allowed to keep tools up to the re-sale value of $3,800. Re-sale value is what you would get for your tools if you sold them as second hand. As we all know, we can purchase a new tool and use it for a few months and then have to sell it. In this case, what we can sell it for is usually a lot less than what we payed for it.

This amount is updated each financial year.

still need more info?

Affordable fees starting from $399

Contact All About Bankruptcy now for more free information and assistance.

Enquire Now

info@allaboutbankruptcy.com.au 1300 56 93 43

Personal Bankruptcy