Yes. All you have to do is apply to your bankruptcy trustee for approval to go. Youll get it, however there is a one-page form you need to fill in simply to inform the trustee of how long you will be taking a trip, etc. This rule only really exists so high flyers dont skip the country. Sometimes the trustee will request your passport, but dont worry about it because you can ask for it back when you want to travel. Call us if you wish to know more about travel on 1300 818 575.
In most cases the answer is yes! In fact, in many cases these days we can really help you keep your home. At Bankruptcy Experts Mount Isa we are professionals at helping people keep their homes. It’s actually really tricky, so if you are worried about losing your home call us on 1300 818 575 and we will guide you through your choices.
The idea of losing the family home is quite possibly the most common hindrance to people declaring bankruptcy. We chat with people on a daily basis who have wrestled for years under serious financial pressure so they don’t lose their home.
So how is it achievable when declaring bankruptcy to keep your house? Easy, really; it’s a matter of equity. Let’s put it this way, if you own a property that’s worth $350,000 and you owe the bank $350,000 you essentially have no equity in the house, correct? The trustee will only sell your home if there is undoubtedly enough equity in the home, if sold, to pay back a range of your debts. So for this specific scenario, the trustee will then offer you some solutions, one of which is to just simply to go on paying the mortgage and live in your home while you are simply bankrupt.
So how can I discover the value of my home before I go through the process and pain of declaring bankruptcy? A standard way is generally to go onto www.realestate.com.au and take a look at the sold houses tab in the Mount Isa area and then it will display all the more recent sales in your area. Another option, if you are not exactly sure or are very worried, is to have a registered valuer do a valuation on your home, not a real estate agent ( except if they are registered valuers, of course). Be warned doing this will cost you somewhere between $300-700. Just another factor about house prices – If the trustee needs to sell off your house they do this moderately quickly. It is usually not a 6-month shiny advertising project and instead it’s generally by auction and they just meet the market on the day and that is probably it. So when considering the value remember that it’s a sell right now price, not when the market improves.
Once you have worked out the market value of your home the next thing to look into is who owns your home.
Typically when our customers are declaring bankruptcy most home loans are between a couple of individuals as joint tenants who both contribute to the home loan. When only one party is declaring bankruptcy then the equity is worked out this way.
Say your house is worth $400,000 and the latest market value is $350,000. Then the balance of equity in the property is $50,000, right? One-half of that complete equity is immediately allocated to the person not declaring bankruptcy, leaving $25,000 for the bankrupt. From that $25,000 the declaring bankruptcy party has to cover all of the selling costs including advertising etc.,
which, depending upon exactly where you live, can set you back anywhere between $12,000-20 ,000. In this particular instance say the marketing expenses are going to be $15,000 then the remaining left over after the sale is $10,000. So in this case the trustee will give the non-declaring bankruptcy party several choices. Just one of which is common is for the bank to say, “Pay us the $10,000 and we won’t sell your house and you are going to have it eliminated as an asset from the bankrupt’s estate.” Or, in short, arrange to pay the $10,000 and you can keep the house.
Just a side note: the bank who has given you the property loan will need the repayments to be continued of course. Despite what the trustee decides, if you don’t pay the bank the property loan these guys will in the end ask you to leave. So, in plain English, keeping your home definitely implies continuing the mortgage too.
There are many more alternatives with your house when declaring bankruptcy, and we have actually just outlined one choice of probably 20 alternatives you can pick when it comes to your home. We know you will need to get this right. Gambling with the family household might be a devastating choice. If you intend to get the appropriate advice about filing for bankruptcy or you simply just want to talk to someone give us a call on 1300 818 575.
Your travel would be prohibited by the trustee due to legal action. For example, if your declaring bankruptcy is a part of a criminal investigation or fraudulent activities, its possible the trustee will restrict your travel.
Bankruptcy lasts 3 years and will sit on your credit file for that time. However, as with any default it will appear on your credit file for 7 years. You can have it removed if you get your bankruptcy annulled.
Bankruptcy is for 3 years and in that time you will not get a loan. After the 3 years is up you will have the ability to get loans; you just wont get the very best rate. Your credit file will be wiped clean 4 years after you have been discharged as a bankrupt then you will have an ideal credit history again and you will get the most competitive deal on loans.
Often, no. Bankrupts hardly ever lose their cars just because they’ve filed for bankruptcy. Obviously, this is uncertain and we can let you know if your property is safe. Call Bankruptcy Experts Mount Isa on 1300 818 575.
How is this worked out? Well it is calculated based upon a threshold market value for your car. The threshold is the maximum wholesale market value your car could be worth, which is $7,350. You will find all types of incorrect information about this online, but here are the simple facts. That $7,350 represents not the total value; it represents equity. So, in other words, if you have a car worth $35,000 you are paying off or leasing and the amount you could possibly sell it for is $30,000 then you can keep your car because its equity is only $5,000. The company that provided you the loan for the car will be pleased for you to manage to keep the car despite the fact that you are bankrupt as long as you maintain the payments.
Get some advice on this one. If you are considering declaring bankruptcy and just need some advice today call 1300 818 575. Basically, you will get about two to three payments grace when it comes to car loans. The bottom line is simple: whether you are declaring bankruptcy or not, if you miss three or more repayments on your loan they will repossess the car. Dont assume because you are declaring bankruptcy you are automatically going to lose your car because in most cases we help people retain them.
The creditors, or the people you owe money to, are notified in writing at about the same time you receive your bankruptcy file number.
No. The declaring bankruptcy procedure is simply a paperwork exercise. All that actually occurs is that you will quite possibly be sent a letter by snail mail or emailed a notice informing you that you are actually bankrupt. At Bankruptcy Experts Mount Isa we make certain that this entire procedure is that easy, so if you have queries about this phone 1300 818 575.
Of course. This approach will take around two weeks and will completely get rid of the bankruptcy from your credit history. There are regulations within the Bankruptcy Act that make it possible for a bankrupt individual to get their bankruptcy annulled using a Section 73 proposal.
The repercussions of creditor’s claims can typically result in bankruptcy, no matter if it was the individual’s choice to enter bankruptcy, or if it was actually filed by a creditor. Nevertheless, bankruptcy is far from the end of the world for the individual who goes through bankruptcy.
We have been working with people declaring bankruptcy in the Mount Isa area for several years so phone us today on 1300 818 575 in order to get some information on this matter. We exercise the most suitable possible strategy for you in order to get back up and running, dealing with left over effects and hindrances of past financial circumstances to give you the best possible outcome. Having experience and skills specialising in Section 73 proposals, we can integrate this with our proven strategies and approaches to bring you through bankruptcy unscathed, ready to start over.
To start with, having your personal bankruptcy annulled is practically reversing it 100%. So if you are actually contemplating having your insolvency annulled there are a handful of things you have to know.
Firstly, precisely how does the annulment work? A basic way to comprehend it is this – let’s say someone owes you $50,000 and they have not paid you 1 cent back for years. Then to make matters worse you learn that they are declaring bankruptcy. You would kiss that money goodbye, right? Years go by and they come to you with an offer to pay you $5,000 that their grandparents are offering to them to settle your debt with them. Undoubtedly you are more than happy to take it, because it is much better than nothing. The only condition they ask for in return is that you consent to have the bankruptcy cleaned from their record, and if you don’t consent to do that then there will be no $5,000. Obviously you don’t care about their credit file; you are just thrilled they are giving you some money after all of these years.
In bankruptcy terms this approach is usually described as a Section 73 proposal, and it is possibly an approach where ‘everybody wins.’
Essentially, the trustee reaches out to your creditors, presents your offer, which is considerably less than the initial debt owed, on the condition they clear your credit file clean.
This approach takes a few weeks. The proposal can be done at any time in the 3 years you are bankrupt. However, you have to consider the right time of your proposal; you don’t want to do it the day you are declaring bankruptcy because it does cost money to do this, you want to ensure the odds are on your side. For instance, if you are repaying money to the trustee each week because you earn over the threshold amount, then your creditors will know they are going to acquire a certain amount from you over the 3 years anyway so it better be more than it will add up to.
similarly, If you have merely been bankrupt three weeks it will definitely be harder to get an annulment since they may get some cash from you over the 3 years if you earn over the threshold sum of money.
If you want advice to put a section 73 proposal to your trustee or simply need more information about the timing of when to put an offer forward, just phone us on 1300 818 575.
Yes! We can assist you cancel all of these agreements. With Debt Agreements and Personal Insolvency Agreements we will need to have you discharged from them first before you go through the pain of declaring bankruptcy, but its no problem. If you are locked into one of these and simply cant get on top give us call at 1300 818 575.
There are very few debts that declaring bankruptcy wont 100% eliminate, like Centrelink, child support, HECS and a court-imposed fine (speeding fines, etc.) and, finally, money owed to an insurance company as a result of a car accident in an uninsured car that you were driving. Besides that, it will remove things like your credit cards, store cards, GST and tax, unsecured personal loans, etc. In reality, there are a lot of things to list so if you have a particular debt you are bothered with just call for a free consultation 1300 818 575.
You cant file for bankruptcy for an amount under $5,000; however, there is no limit above that. If you owe a couple million dollars, that’s managed no differently than $20,000.
An unsecured creditor is a creditor who does not have a hold over the chattels/assets/property acquired with the credit afforded to you. Such debts include credit card debts.
A secured creditor has a hold over the chattels/assets/property until the debt is paid out in full. If a debtor defaults on a secured debt, the creditor has the right to repossess and sell the chattels/assets/property to pay down the debt.
We have helped thousands of people go through the process of declaring bankruptcy over many years and we have never had anyone’s application rejected. That’s why we offer a 100% money back guarantee.
There is a basic method we use here prior to declaring bankruptcy and all you have to do is get a copy of your credit history as it will have your credit history
on there. Companies like www.veda.com.au will be able to get you a copy for a small fee.
Vehicle accidents may be difficult, so to keep it simple call us on 1300 818 575 to get the right advice on your situation. Declaring bankruptcy may not be the right option. However, as a general rule, if you were driving a motor vehicle that was not insured then the expense of the repairs is not eliminated with the declaring bankruptcy process. Having said that, it dependson who admitted liability or who was at fault. If you go to court and the court confirms you were not at fault then you should be fine.
Yes! We can really help you carry this out, even though it’s possible there are effects and plenty of regulations around this process, so phone us and we will direct you through the process on 1300 818 575. Bankruptcy Experts Mount Isa are professionals at assisting companies get back on their feet.
Yes. There is an approach to follow, but if you win lotto or inherit some cash you can use it to get your slate wiped clean. There is a way of doing this properly; just call us first.
Generally, if you owe money to a lender they can get a court order and bankrupt you. They have to follow a process, but it is possible. What you need to avoid at all costs if possible is someone else bankrupting you, as its always best to voluntarily file for bankruptcy. Unless you enjoy attending court and annoying phone calls, of course.
Absolutely. Even so, this is a tough process and we suggest you get some expert advice before declaring bankruptcy; if it’s handled inappropriately, it might be disastrous. For a free consultation call Bankruptcy Experts Mount Isa 1300 818 575.
No, we do that for you. Actually, we serve as a buffer or a midway point between you and your creditors. So ultimately you are not obligated to notify them of your bankruptcy; we take care of that for you.
Usually, it takes about 2 weeks.
Yes. Typically a lender will pursue the other person who signed the loan documents with you for the sum total of the outstanding money owing on the loan.
Don’t panic! If you overlooked a debt and remember it later, just call your trustee with the name of the creditor, address, date the debt was incurred, amount of debt and any account or reference number/s supplied by the lender. Your trustee will add the creditor to your bankruptcy and send a notification to the creditor.
No. We deal with the entire procedure for you.
Ordinarily this is not a problem, so if you are a gambler, don’t worry. What the trustee doesn’t like is inconsistency here. Put simply, you have never gambled in your life and all of a sudden you lost $50,000 on the horses, then you might have some explaining to do, of course, because it just doesn’t add up.
Yes. We appreciate you are busy. If you have a phone we can help you; simply give us a call on 1300 818 575.
Yes. This is possible. It requires some emails back and forth but it can be done.
Yes. If a person originally living in another country is now residing in Australia then files for bankruptcy and they have a debt incurred in that foreign country, you just list that debt on the paperwork.
In most cases the creditor overseas will wipe out the debt. It is possible and legal for them, however, to reject your application, and if you return to that country you may be subject to their bankruptcy laws.
There are a few ways the trustee can learn, and the most effective and simplest way is for you to let them know when we do the paperwork. There is also a government website which has major assets listed also. You ought to get some advice about assets; be careful.
This is complicated and you will want the right guidance, so if you need more information about inheritances give us a call on 1300 818 575.
No. The income thresholds are the same for everyone so no matter how you earn your income you have to earn about $50,000 each year before your income will be affected by bankruptcy.
Yes, if you owe the tax office money. Put simply, if none of your debts is tax debt, then no, the tax office will keep the cash you owe them.
No, if you don’t owe the tax office money when declaring bankruptcy then you should be OK. Your income tax return is viewed as net income, so if you are below the threshold amount you can earn while bankrupt then you will get your entire tax return back.
If you are required to pay child support, this money will be deducted from your net income, so what you have the ability to keep after you pay your tax and then child support is considered net income. That is why when declaring bankruptcy, the net income numbers are always quoted.
Yes, however its not a good idea. You are permitted even while you are declaring bankruptcy, but the trustee will take them off you, as they are deemed an asset.
You can keep almost everything when declaring bankruptcy except big things like houses, cars, shares and inheritances. Even items like houses and cars may be able to be saved. Simply contact us before you make any rash decisions on 1300 818 575 for Bankruptcy Experts Mount Isa.