If you are overcome by debt and you are investigating at Bankruptcy, there are possibly 3 consequences you need to look at before anything else.
For the 3 years you are bankrupt you may have to pitch in some of your income back toward your debt despite being bankrupt. (see table below).
This is really significant when it involves Bankruptcy because If you do not give from your salary like you are supposed to, the repercussions are serious, your bankruptcy may be expanded until you do re-pay the required level.
There are some factors to consider in this aspect of your income though, first of all if you pay any child support that comes out of your income to begin with, so in other words your net income will be determined once you pay your tax and after that child support, what remains is actually your net income.
If you are a couple and you both declare bankruptcy these particular figures are based upon individual incomes not coupled so with no dependents each partner can earn $1,010.45 per week.
If one partner in a relationship is bankrupt the non-bankrupt partner is able to earn any income since it’s not factored into the equation.
If you are self-employed or your salary is up and down the figure will be calculated annually and not per week. If you earn over the limit amount weekly then you will be expected to contribute weekly from your pay.
When people come to me regarding Bankruptcy I’m often asked ‘what assets will I lose when I declare bankruptcy?’ It is likely simpler to think about it this way: Your household belongings are not going to be impacted. The assets that you will lose will be substantial things like motor vehicles, boats, houses etc. You are able to 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 connected you can keep it thanks to the fact that it’s got no equity in it. So it’s not the overall value that matters in this particular case it’s the equity or the distinction between the loan and the value of the car. But I don’t wish to talk too much more about assets since it is a complex area of Bankruptcy, if you have concerns about assets because you are looking over Bankruptcy give us a call here at Bankruptcy Advice Perth on 1300 879 867, or visit: www.bankruptcy-advice.com.au/Perth
Your home 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 certainly a lot of unclear information out there, so do some online research and make sure you actually are aware of what is going to happen. Give us a call if you would like to know more about houses and Bankruptcy in Perth.
The bottom line with bankruptcy and overseas travel is clear-cut. If you get the right advice and apply for bankruptcy properly in the first place, then you will not have an issue going overseas as frequently as you want whilst you are bankrupt.
The process is a simple online application you pay $150 and you are on your way.
If you are worried about any one of these concerns In Bankruptcy about Assets, Income, Credit Rating, and travel limitations call us here at Bankruptcy Advice Perth on 1300 879 867, or visit: www.bankruptcy-advice.com.au/Perth