Bankruptcy Assistance - Adelaide
While bankruptcy is a necessity for some situations, it is a last resort and will come with some not so pleasant consequences. At Debt Savvy we do recommend that you do speak to us before you declare bankruptcy as there are various options that may be suitable before you make a serious decision like this.
What exactly is bankruptcy?
Are there any debts that I will have to continue to pay if I declare bankruptcy?
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Any fines or penalties imposed from the court / legal proceedings
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Unliquidated damages from accidents e.g. car accidents may be an exemption
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Student assistance/supplement loans and HELP debts
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Any utility bills and house rental payments
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Other debts that you may occur post being declared bankrupt
Will my assets be protected when I go bankrupt?
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Any of your possessions that help you earn an income up to a set limit
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The majority of your personal and household items
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Your vehicles up to a defined limit
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The majority of funds in a complying super fund
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Centrelink payments will be protected
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Assets that may fall into the category of having to be sold when you go bankrupt include:
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Property including houses; apartments; land; business and any other real property
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Any motor vehicles which may not be exempt / over the set limit
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Shares or other investments
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Your tax refund
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Proceeds from inheritance you may have received before or during your bankruptcy
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Lotto winnings
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Assets that you may have a joint share in with another individual
Can bankruptcy affect my employment?
The simple answer is yes as it can affect your ability to hold certain licenses and working in various occupations. Your employer however is not normally notified of your bankruptcy unless you owe them money. You still will have to do a tax return.
What else should I consider before going bankrupt?
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Borrowing Money - If you borrow money, purchase any goods on credit or incurring credit in any way exceeding a set amount as part of your bankruptcy, this is an offence unless you inform the person you are dealing with that you are an undischarged bankrupt.
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Operating a Business - While you can still operate a business while bankrupt,iIf you trade under an assumed name or business name either as a sole trader or in partnership, you will have to disclose your bankrupt status. You cannot be a director of a company or be involved in its management without the permission of the Court.
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Change of Name, Address and Overseas Travel - You will have to make it known to the trustee of any changes of name or address and also receive permission to travel overseas as part of declaring bankruptcy.
Will bankruptcy affect my credit report?
How long will my bankruptcy last?
Before you decide on a course of action be sure to get in touch and talk with us here at Debt Savvy. We’ve had years of experience in this space and will ensure that you take the best course of action.