When Declaring Bankruptcy – Can I travel overseas?
1. When Declaring Bankruptcy; Can I Travel Overseas?
When Declaring Bankruptcy; Can I Travel Overseas?
As long as you do the things that you are required to do while bankrupt, you can get approval from the trustee to take a trip overseas from South Australia.
This usually involves paying $150 to the Trustee and filling in an online form.
It is doable but there are some things you need to know.
Give Bankruptcy Experts Adelaide a call at 1300 795 575 if you are unsure, and we can guide you through the finer points about traveling overseas while bankrupt.
2. Can I Keep My House Even When Declaring Bankruptcy?
Can I Keep My House Even When Declaring Bankruptcy?
Whether you keep your home or not will boil down to how much equity is in the property.
If, for instance, you own a home that is worth $500,000 and you owe $200,000, there is $300,000 of equity in the house.
In South Australia, the Trustee will most likely sell the house to pay off your debt.
However, if you owe the full $500,000, you will be able to stay in your home, as long as you can pay the rates and mortgage.
With joint ownership, the rules change, and I will discuss this in another video.
Bankruptcy Experts Adelaide can give you all the facts, call us on 1300 795 575.
3. When Would My Overseas Travel Be Restricted?
When Would My Overseas Travel Be Restricted?
As long as you stay compliant with the conditions of your bankruptcy, overseas travel will not be an issue.
Make certain you stay in contact with your Trustee and provide everything asked of you, including paperwork or any other information.
There are some exceptions, of course. If you want to be sure, give Bankruptcy Experts Adelaide a call today on 1300 795 575.
4. What Happens to My Credit Rating?
What Happens to My Credit Rating?
It is a common misconception in South Australia that your credit rating will never recover from bankruptcy.
The reality is, after just 5 years your credit rating slate is wiped clean and you can start once again.
When the 3 year bankruptcy period is over, you will be able to get loans for secured assets, like vehicles and houses.
On your credit file, it will show as ‘Discharged Bankrupt’, and this will last for the two years following your bankruptcy up until the 5-year cycle begins again.
More questions? Call Bankruptcy Experts Adelaide on 1300 795 575.
5. Will I Ever Have the Capacity to Borrow Money Again Once I’m Bankrupt?
Will I Ever Have the Capacity to Borrow Money Again Once I’m Bankrupt?
You will be able to borrow for secured loans, such as car and home loans, after the 3 year bankruptcy period is up.
After 5 years, two years after the 3 year bankruptcy period has ended, your credit file will be refreshed and clear once again.
6. Will I Lose My Car When Declaring Bankruptcy?
Will I Lose My Car When Declaring Bankruptcy?
It is not a given that you will lose your vehicle when you file for bankruptcy. You can own a car up to the equity value of $7,500.
This means that if you own a car worth $27,500, for example, and you have a loan against it for $20,000, you can keep the vehicle.
To illustrate further, if you have a vehicle worth $20,000 and you owe $20,000, you have $0 equity in the vehicle, and you will be able to keep it, as long as you can stay up to date with the repayments.
7. Bankruptcy and Centrelink Debts
Bankruptcy and Centrelink Debts
For the most part, it has been our experience that Centrelink will not chase you for your debt to them during the 3 years of bankruptcy.
More and more, we are seeing the Centrelink debt written off entirely after the 3 years of bankruptcy, although this is in no way a guarantee.
Things are always changing in South Australia, and it is best to speak to our team of experts at Bankruptcy Experts Adelaide to get the complete picture.
Call us for an obligation-free consultation on 1300 795 575.
8. What If I’m Overdue on My Car Repayments, Can I Still Go Bankrupt?
What If I’m Overdue on My Car Repayments, Can I Still Go Bankrupt?
Most people are behind on all of their repayments when considering bankruptcy. Usually, you will be permitted 2 to 3 missed payments on your car loan before they repossess the vehicle.
However, even if your overdue car repayments have gone to court and become a legal matter, you can still declare bankruptcy and get yourself out of debt.
9. When Are the Creditors Informed of My Bankruptcy?
When Are the Creditors Informed of My Bankruptcy?
Firstly, we will help you collect all the information you need for your application for bankruptcy. When that is all sorted, we will lodge the application for you. After about two weeks, you will get a written notification, as long as there are no further requests for information. This is also when you will get your Bankruptcy File Number.
At the same time, all your creditors will be contacted and notified that they can now communicate with your bankruptcy trustee instead of you.
Call Bankruptcy Experts Adelaide with any concerns you have on 1300 795 575.
10. Will Anyone Come to My Home?
Will Anyone Come to My Home?
The bankruptcy process is designed to protect you so that you can move forward in your life without debt. Going bankrupt will not mean that people will be able to come to your house whenever they like. On the contrary, in South Australia, bankruptcy safeguards you from creditors or bailiffs.
The most contact you will ever get when you declare bankruptcy is a letter or an e-mail, and at Bankruptcy Experts Adelaide we can assist to make the process even easier than that.
Call us with any concerns at all on 1300 795 575.
11. Can I Have My Bankruptcy Annulled?
Can I Have My Bankruptcy Annulled?
Yes. There are provisions within the Bankruptcy Act that enable a bankrupt individual to have their bankruptcy annulled and the bankruptcy record removed from your credit history. In bankruptcy terms, this technique is generally referred to as a Section 73 proposal and it is an approach where everybody wins. Essentially, the trustee contacts your creditors, presents them with your offer, which is considerably less than the original debt owed, the condition is that the creditors clear your credit file clean. This process typically takes a few weeks and there are costs involved. A section 73 annulment proposal can be done at any time throughout the 3 years you are bankrupt although it is more likely to be successful if attempted later on in your bankruptcy.
At Bankruptcy Experts Adelaide we have a wealth of experience and skills in Section 73 proposals, we combine this with our proven solutions to bring our clients through their bankruptcies in one piece, ready to start over. Call us on 1300 795 575 to see how we can help you.
12. Can I Still Go Through the Process of Declaring Bankruptcy If I’m Already in a Debt Agreement, Personal Insolvency Agreement or in a Debt Consolidation Loan Contract?
Can I Still Go Through the Process of Declaring Bankruptcy If I’m Already in a Debt Agreement, Personal Insolvency Agreement or in a Debt Consolidation Loan Contract?
Yes. In South Australia, if you are currently in a Debt Agreement, Personal Insolvency Agreement or Debt Consolidation arrangement, you can still apply for bankruptcy.
You will need to apply to be released from these agreements, but we can help you fill out the relevant paperwork. So call us at Bankruptcy Experts Adelaide with any questions you have on 1300 795 575.
13. What Debts Won’t Declaring Bankruptcy Remove?
What Debts Won’t Declaring Bankruptcy Remove?
The following are the debts that are not removed by bankruptcy:
HECS or FEE Help
Civic Fines like Speeding or Toll fines
Secured Creditor Debts, like car or home loans (debt is secured against the asset).
If you cannot make a payment on your house or car, the bank or the trustee will sell the asset, and the debt will end up being an unsecured asset. The unsecured debt can then be removed with bankruptcy so you will not be stuck with it.
In SA there are some other debts that will not be eliminated with bankruptcy, to find out call us at Bankruptcy Experts Adelaide on 1300 795 575 to make sure.
14. Is There a Limit to the Amount of Debt I Can Be in Prior to Declaring Bankruptcy?
Is There a Limit to the Amount of Debt I Can Be in Prior to Declaring Bankruptcy?
In SA and throughout Australia, bankruptcy is not an option for a debt under $5,000.
Here at Bankruptcy Experts Adelaide, we always discourage you from deciding on bankruptcy for a small amount of debt. It is important to consider your options carefully and we can help you work out what is right for you.
Although there is a lower limit, there is no upper limit on the amount of debt you can owe when declaring bankruptcy.
You can owe millions of dollars, across a range of different situations, and still begin the bankruptcy process to recover your life.
To find out more contact us on 1300 795 575.
15. What is the Difference Between a Secured and Unsecured Loan?
What is the Difference Between a Secured and Unsecured Loan?
The difference when comparing a secured loan and an unsecured loan is that a secured loan has a secured asset attached to it. These are assets such as vehicles or homes, because they are the security for the loan. If you do not make repayments, the bank simply sells the asset and recovers the money.
Do not always presume that your loan is secured or unsecured, call your bank or lender to find out for sure. There are other security models and different products that banks sell, so if you are not sure, give us a call at Bankruptcy Experts Adelaide on 1300 795 575 and we will walk you through your case.
16. How Can I Make Sure That You Will Be Successful in Making Me Bankrupt?
How Can I Make Sure That You Will Be Successful in Making Me Bankrupt?
At Bankruptcy Experts Adelaide we will always make sure that you qualify for Bankruptcy before we go ahead with assisting you in your application. There are some circumstances where you will not be able to apply, and these are fairly straightforward, for instance if you have a foreign, not Australian debt.
In most cases however, you will qualify for bankruptcy and by calling 1300 795 575 we can start the process together.
17. What If I’m Not Completely Sure Who I Owe Money To?
What If I’m Not Completely Sure Who I Owe Money To?
Applying for a credit report to find out the total list of creditors is not the complete solution.
Some creditors will not report your debt to a credit agency or credit reporting agency, and you might discover that a bill turns up on your front door quite unexpectedly. This is part of life, it is very easy to forget who you owe money to especially if you have moved or have lost contact with the creditor.
At Bankruptcy Experts Adelaide we can help you to simply add the debt to your list of creditors, and then have it written off, as long as the debt was incurred before you filed for bankruptcy. Call us to find out on 1300 795 575.
18. I’ve Had a Motor Vehicle Accident. Will the Debt Be Covered in Bankruptcy?
I’ve Had a Motor Vehicle Accident. Will the Debt Be Covered in Bankruptcy?
If you were refused an insurance claim because the insurance company found you to be ‘at-fault’, then that debt cannot be wiped through bankruptcy. Your debt can only be cleared if you can show through the courts that you were not at fault.
There is, of course, more to it than that, so please call Bankruptcy Experts Adelaide on 1300 795 575 to discuss your unique set of circumstances.
19. Can I Also Have My Business Debts Removed with my Personal Bankruptcy?
Can I Also Have My Business Debts Removed with my Personal Bankruptcy?
It is possible to have your business debts cleared along with your personal debts, and at Bankruptcy Experts Adelaide we can assist you to do this. Bankruptcy in South Australia is generally applicable only to individuals, however, if you are a Sole Trader, some of the business debts can be eliminated. The rules become more complicated if you are in a Partnership or trading through a Trust or a Company, however, you do have options which we can guide you through.
Be aware, there are a number of regulations and knock-on effects with this process, so please contact us on 1300 795 575if you are considering this.
If you are considering liquidating your business to clear your business debt, we strongly encourage you to talk to us before you decide.
20. Can I Pay Out My Bankruptcy Debt and Have It Annulled?
Can I Pay Out My Bankruptcy Debt and Have It Annulled?
Can I Pay Out My Bankruptcy Debt and Have It Annulled?
Let us say you win big on the pokies, and you can now cover all your debts. Yes, it is possible to pay off those debts and have the bankruptcy annulled.