If you are destroyed by debt and you are having a look at Bankruptcy, there are probably 3 effects you have to think about to begin with.
For the 3 years you are bankrupt you may have to chip in some of your income back toward your debt despite being bankrupt. (see table below).
This is actually essential when it involves Bankruptcy because If you do not provide from your salary like you are supposed to, the repercussions are serious, your bankruptcy may be increased until you do re-pay the demanded amount.
There are some considerations with this element of your income though, firstly if you pay any child support that comes out of your earnings first, so simply put your net income will be determined once you pay your tax and after that child support, what’s left is generally your net income.
If you are a couple and you both declare bankruptcy all of these figures are based upon individual incomes not combined so with no dependents each partner can earn $1,010.45 every week.
If one partner in a relationship is bankrupt the non-bankrupt partner is able to earn any income simply because it’s not factored into the situation.
If you are self-employed or your source of income is up and down the figure will be worked out annually and not each week. 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 file for bankruptcy?’ It is perhaps simpler to think of it this way: Your household belongings are not going to be affected. The assets that you will lose will be big 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 distinction 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 phone us here at Bankruptcy Experts Parramatta on 1300 795 575, or visit: www.bankruptcyexpertsparramatta.com.au
Your house 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 unclear information out there, so do some online research 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 Parramatta.
The bottom line with bankruptcy and international travel is clear. If you get the best advice and file for bankruptcy properly from the beginning, then you will not have an issue taking a trip overseas as often as you want even though you are bankrupt.
The method is a basic online application you pay $150 and you are on your way.
If you are concerned about any one of these issues In Bankruptcy about Assets, Income, Credit Rating, and travel limitations call us here at Bankruptcy Experts Parramatta on 1300 795 575, or visit: www.bankruptcyexpertsparramatta.com.au