Here we aim to answer the most frequently asked questions we receive. If you have a more complex question, please reach out to us via our contact page, where a consultant will personally answer your question for free.
Frequently Ask Questions
Will my income be affected by bankruptcy?
Should you meet any of the below thresholds, you will be required to pay 50% on every dollar over the threshold. For example, if you have no dependents and earn $55,000 per year (after tax), after $52,543.40, you will have to contribute 0.50 cents on every dollar earnt. No dependents – $52543.40 (After Tax) – 1 Dependent – $62,001.21(After Tax) – 2 Dependents – $66730.12 (After Tax) – 3 Dependents – $69,357.29 (After Tax) – 4 Dependents – $70,408.16 (After Tax) – Over 4 dependents – $71,459.02 (After Tax) Often times where individuals have had to pay a contribution from their income due to being above the threshold. They have still found substantial release from financial burden as they have still been released from their debts through bankruptcy. We recommend speaking with our bankruptcy experts to calculate and determine if the positives of protection through bankruptcy will still outweigh the negative of contribution to your bankruptcy estate from your income.
I am (or have been) a sole trader/company owner. How will bankruptcy affect me?
You can still continue your sole trader-ship whilst you are bankrupt. Please refer to the previous section to see how it will affect your self-managed income. If you are the director of a company, unfortunately under The Corporations Act, you are unable to stay on as director of said company whilst subject to bankruptcy. The process is as follows. – Specific forms are lodged with ASIC and you relinquish your position as director. – If no directors, ASIC will deregister the company.
Can I keep my house?
Property is the asset most sensitive to the bankruptcy process. Often, individuals are ready to part with the property so the likelihood of the property being sold is a non-issue. However, if you do have property that you intend on keeping, it is recommended you discuss the amount of equity in the property with your bankruptcy consultant to determine the likelihood of the property being sold by the trustee during the bankruptcy process.
Can I keep my vehicle?
A trustee will not have any interest in your vehicle if the market value of the vehicle is $8,000 or less. Our consultants can help you to determine the likelihood of your vehicle being sold through the bankruptcy process.
Will I ever be able to get another loan?
Yes! When requesting loans over a certain amount, you will need to disclose that you are in bankruptcy to the creditor and the loan will be at their discretion. Creditors have a record of your bankruptcy from either five years from the date you became bankrupt or two years after your bankruptcy ended (whichever of the two is later). However, after this point, your bankruptcy will not be evident via a creditors standard check and you are not bound to having to disclose that you were a bankrupt.
Am I allowed to leave the country?
Yes! You’re able to enjoy overseas travel throughout your time in bankruptcy. However, you do need to seek written consent from your bankruptcy trustee before leaving the country as it is an offence to leave without first having done so. This is typically a quick and straightforward process (depending on the circumstances surrounding your bankruptcy).
Will my superannuation be affected?
The short answer, No! As long as the superannuation in your nominated super fund/s has been accumulated over time (i.e. your employer/s have slowly contributed weekly to your fund) your super is protected through bankruptcy. If you have made or received lump sum payments or pay outs within the last five years, protection may not be the case. If you do fall into this category, speak with one of our consultants further on this matter.
I have more complicated question not answered here, how can I have this resolved?
Not a problem! That is exactly what our service is for, answering your questions! Please just head to our contact page. Once you’re details are entered a consultant will SMS you to organise a time to go through all of your questions.
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