There comes a time when dealing with debt when you reach the end of the road. You may be wondering – what does bankruptcy mean?
You do have options to think about. In Australia, the two most used options are a Debt Agreement or Bankruptcy. This article is all about Bankruptcy.
How the debts have arisen does not matter. The fact is that you have run out of cash and this is stressful. Dealing with lenders, debt collectors or solicitors can be distressing. Bankruptcy can bring peace of mind. Your financial problems are now shared with a Trustee. Once you are declared bankrupt, you become debt free – the debt has gone forever.
Understanding what Bankruptcy means
Why struggle with debt when the quick answer is to get in touch with Capital Debt Solutions. Being experts we can really make a difference for you. Contact us today for a FREE consultation – Click here to message us or call us now on 1300 107 155 or 07 5474 4450. Every month we help Australians just like you.
Let’s look at what can happen:
- You can go bankrupt as a voluntary undertaking, when your debts are over your head. But a creditor cannot send you bankrupt if the amount is below $5,000.
- Although declared bankrupt you retain some income. The Government sets a Threshold Amount with a minimum of over $1,000 per week. The amount increases if you have dependents. Your specialist at Capital Debt Solutions will tell you the exact amount.
- You will not necessarily lose your car. Depending on how you bought it and whether there is a bill of sale on it from a lender, it could be safe. But you might still have to continue with repayments. With other debts gone it becomes easier.
- Going bankrupt does not mean you cannot travel overseas. There are some forms to complete and there may be some other hoops to jump through. However, you should get permission to travel and your specialist at Capital Debt Solutions will advise you and deal with it all.
- If you are closing in on retirement then, in most cases, your superannuation is safe. It’s only if you have done something dodgy before going bankrupt, that it might be looked at in detail. If you have paid into it normally, then leave it alone when you go bankrupt. Do not use it to pay creditors.
- Having been bankrupt does not preclude you from renting property. However…just a tip…make sure you have paid all your service bills before going bankrupt. Otherwise, life will be difficult afterwards. Just make sure you are a good tenant.
- Be warned that not all bankruptcy trustees will save your house. Their job is to gather in as much cash as they can from your assets. The house might become part of them. But it’s complicated so take advice – ask us, Capital Debt Solutions click here to message us or call us now on 1300 107 155 or 07 5474 4450.
- Bankruptcy does affect your credit rating and the credit agencies keep the details on file for 5 years. But then this is normal for all the information they hold about you. Moreover, you do not have to go to court to go bankrupt voluntarily.
- You can see from the brief details above that being declared bankrupt could be the start to a new life. Remember with bankruptcy, which currently lasts for 3 years, the debts, collectors and solicitors letters stop. You become free from the debt.
Now it’s decision time
The first tip to consider is ……DO NOT DELAY. The quicker you make the decision the better it is for you and possibly your family. Debt can affect loved ones around you. Think about them as well. This is where Capital Debt Solutions help. We are sympathetic to your financial problems.
Going bankrupt is a private affair. Everything discussed and acted on with Capital Debt Solutions is discreet and confidential. There are no newspaper headlines to worry you, your family or friends. The stigma of going bankrupt has gone. Today, personal bankruptcy is more commonplace. In 2012-2013 more than 20,000 Australians either declared themselves bankrupt or were forced into bankruptcy by creditors. The purpose of the Bankruptcy Act is to provide a humane solution to personal finance problems. The stigma has largely disappeared.
Many people say, through being declared bankrupt they gained FREEDOM. The letters from lenders, debt collectors and solicitors all stopped. As a result, they got peace of mind. Let us help you achieve the same.
Get in touch with us – today
Take just 10 minutes on the telephone for a FREE consultation. Make today, the day you talk to our debt solutions specialist, who will work with you and your creditors to get you back on track and build a brighter financial future. Make today the day you start to stop the hassle of debt.
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