If you are destroyed by debt and you are checking out at Bankruptcy, there are normally 3 consequences you have to look at before anything else.
For the 3 years you are actually bankrupt you might be needed to contribute some of your income back toward your debt despite being bankrupt. (see table below).
This is really critical when it concerns Bankruptcy because If you do not provide from your salary like you are supposed to, the consequences are serious, your bankruptcy may be expanded until you do re-pay the demanded amount.
There are some factors with this aspect of your income though, first of all if you pay any child support that comes out of your income first off, so simply put your net income will be determined once you pay your tax and after that child support, what’s left is usually your net income.
If you are a couple and you both declare bankruptcy these figures are based upon individual incomes not coupled so with no dependents each partner can earn $1,010.45 in the hand every week.
If one partner in a relationship is bankrupt the non-bankrupt partner will be able to earn any income simply because it’s not factored into the equation.
If you are self-employed or your income level is up and down the figure will be calculated 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 concerning Bankruptcy I’m often asked ‘what assets will I lose when I declare bankruptcy?’ It is likely simpler to consider it this way: Your household belongings are not going to be impacted. The assets that you will lose will be substantial things like vehicles, boats, houses etc. You can have a car to the value of $7,500 in equity. So to put it simply 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 questions about assets because you are considering Bankruptcy contact us here at Bankruptcy Experts Alice Springs on 1300 795 575, or visit: www.bankruptcyexpertsalicesprings.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 definitely a lot of unclear information out there, so do some groundwork and make certain you actually comprehend what is going to happen. Give us a call if you need to know more about houses and Bankruptcy in Alice Springs.
The bottom line with bankruptcy and international travel is clear. If you get the best advice and declare bankruptcy properly in the first place, then you will not have a worry travelling overseas as often as you want while 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 of these issues In Bankruptcy about Assets, Income, Credit Rating, and travel limitations give us a call here at Bankruptcy Experts Alice Springs on 1300 795 575, or visit: www.bankruptcyexpertsalicesprings.com.au