What is Voluntary Bankruptcy? Think of a situation where by you cannot repay your debts. This is where you become bankrupt, and this is a legal practice that releases a person/individual from ALMOST all their debts. Our Brisbane based Insolvency Specialists can help you with your concerns and recommend solutions to help you to get out of tough situations.
In addition, at Safeguard Insolvency, we are here with you throughout this whole process. In todays day and age, its is becoming more and more apparent that people and business are unable to repay their debts or come to some suitable arrangements to pay them.
Moreover, the real question is, what do you do next? We advise that you may lodge a patrician voluntarily to become bankrupt. This is what we call A Debtors Petition. Further to that, a creditor may take action to have you declared bankrupt, which is ordered by the court. This is called a Sequestration Order.
What is the threshold amount that can allow creditors to force you into bankruptcy? You have to owe at least $5,000.00, which then can allow creditors to force you into bankruptcy.
You are allowed to keep your household goods. These things include furniture, television and media, and everything of reasonable value.
Your credit report will show that you are bankrupt for five years. It is also found on a public record called The NATIONAL PERSONAL INSOLVENCY INDEX for life.
There is a probably chance that you will loose some over your assets including your house and car worth more than $7,500
You may earn an income of $52,543.40 after tax with no dependents. If you have two dependents you may earn $66,730.12. Furthermore, if your after-tax income exceeds the amount allocated to you, the result would be that you pay contributions to your trustee and your creditors
Lastly you may need to pay Child Support, Education and Centrelink Debts and any necessary legal or court fines.
What Happens To Your Assets
FIRSTLY, SAFE ASSETS:
Ordinary Household Goods – Television, Household Furniture, Computers Etc.
Cars that has less that $7,500 worth of equity
Tools of trade to – valued at $3,650
No more than $1,000 in the bank – This is for living expenses.