All you need to know about declaring Bankruptcy
Bankruptcy Information will help you decide whether this debt relief solution is the right one for you. Debt Rescue is committed to finding a positive solution for every Aussie who asks us for help. The positive solution our case managers suggest for you has been selected as the best possible debt management strategy to suit your situation and your lifestyle.
No two instances of debt are the same, so we can call on a range of different products with different sets of benefits. By the time some people approach us for help, their debts are completely out of hand. While we will endeavour to find a solution to help you get out of debt with as little impact on your life as possible, sometimes we will suggest bankruptcy.
Gathering Bankruptcy Information
Bankruptcy has such a stigma attached to it when people hear it suggested for them they panic. Immediately they think they are going to lose their house, job, reputation, lifestyle, freedom and even their family. But bankruptcy isn’t always as intrusive as you first think.
It is true bankruptcy comes with a set of obligations and restrictions for three years while it is in place. However, there are also a lot of myths floating around about bankruptcy which we can bust right now.
You say: I am going to lose everything I own, they will even take the clothes off my back and the bed I sleep in.
We say: As nice as your bed spread might be, chances are, it isn’t valuable enough to draw the attention of your creditors.
The only assets which will be taken from you will have significant value attached such as property, including home, land and business property, motor vehicles (other than exempt ones), shares, investments, tax refunds, inheritances, lotteries and other competition prizes.
However you will be able to keep most ordinary household items such as your furniture and white goods, tools used to earn an income up to a threshold, vehicles with a maximum equity up to a threshold, your super, life insurance policies, compensation for personal injuries and any awards of a sporting, cultural, military or academic nature made to you.
This kind of bankruptcy information and more about which assets you can keep is available on the AFSA website.
I’m going to be fired
Only a select few occupations won’t allow a bankrupt to work. These occupations mostly include jobs involved in giving financial advice and jobs which require a license like real estate agents and lawyers. If you are concerned about losing your job due to bankruptcy, contact your licensing authority to check the standards in your industry and any other bankruptcy information.
People will look at me differently now I’m Bankrupt
No one has to know you have declared bankruptcy. Your name will be listed on the National Personal Insolvency Index, which can be viewed for a fee. However the only people to know you are bankrupt are you, your creditors and your spouse.
I’ll be blacklisted from borrowing money for the rest of my life
Your bankruptcy will be marked on your credit file generally for three years, after which it will be noted you are a discharged bankrupt. After you have been discharged or seven years, the bankruptcy will be removed from your credit file completely.
Each lender has different policy regarding lending money to discharged bankrupts. More traditional lenders such as the big four banks will have strict rules about lending. However there are a number of non-conforming lenders who specialise in lending to people with a bad credit rating and discharged bankrupts such as Positive Solutions Finance. Follow the link the their website for more lending with bad credit and bankruptcy information.
Arming yourself with Bankruptcy Information
It is important to gather as much bankruptcy information as you can before you make a decision about the next step to take. In the right circumstances bankruptcy is an effective way to clear your debts, providing you with a firm foundation from which to rebuild your finances.
However if you rush into it, bankruptcy can leave you stressed, upset and helpless. If you are considering bankruptcy, call Debt Rescue for more bankruptcy information and see how we can help you through this difficult time. Talk to and Aussie Who Cares.