Sometimes after exploring all your options and finding that you still cannot afford to pay your bills on time and survive, Bankruptcy could be an option worthy of consideration.
Generally, a Bankruptcy lasts for 3 years and during this time you will not be able to act as a Company Director and you must seek permission to travel overseas.
Whilst most existing debts are cleared during this 3-year period, if you make over certain statutory amounts in income, which we can advise you of, you must still pay 50% of all net income over and above that pre-set limit to your Trustee. Please note that income includes Tax Returns.
Any Inheritances have to be paid to creditors as well as any other windfalls, except superannuation or compensation insurance payouts.
As at 28th Oct 2020 in most instances you can keep your everyday household items, TV, Computer, Children’s Toys, Furniture etc. as well as your motor vehicle up to a value of $8,100.
During a Bankruptcy your superannuation is protected.
Property whether it be your Family Home or Investment property forms part of the Bankrupt Estate and as such would be dealt with by the Bankruptcy Trustee.
If you would like to Keep the Family Home, please contact us urgently as in the right circumstances there is an opportunity for this to be a real possibility.
Please remember that we work for you and are focused on achieving the best result for you.
Stop the stress, call us on 1300 803 290 for a Free Consultation.