In reality, bankruptcy has little to no impact on the majority of individuals.
You may be able to continue earning an income during a bankruptcy filing. However, if your income exceeds a certain amount, the trustee may claim all or part of it to repay your creditors.
Even if owned property is subject to a mortgage that covers more than the property is worth, it may still be possible to keep the property (as long as you continue to meet your mortgage obligations with your bank).
If you live in a family home and own an amount of equity in it, you, your partner or another adult family member may be able to offer to buy that equity from the trustee—the person managing the sale of the home—and stay in it.
You can register motor vehicles with a total value not exceeding a certain limit.
Bankruptcy law allows debtors to keep household goods and most other items of reasonable value. However, some personal property, such as expensive jewelry, rare collectibles, and business equipment, may have to be turned over to the bankruptcy trustee for liquidation.
Declaring bankruptcy can affect your credit history for up to five years and you will be listed on the national personal insolvency index for life.
While you are no longer able to obtain credit, or act in your own name as a company director after being declared a bankrupt, provided you do business under another name and notify clients of your status as a bankrupt, or “bankruptcy trustee” who is only providing services under a power of attorney, you can continue to work for yourself.
The information on this page is general in nature and is not advice. Before acting on the information on this page, you should consider the appropriateness of the information having regard to your own personal circumstances. If you have any questions about how bankruptcy might affect you, please contact us for a free initial consultation with a licensed insolvency practitioner who can give you personalised advice about how bankruptcy might affect your specific financial situation.
How Does Bankruptcy Effect My Life FAQ’s
How does bankruptcy affect my credit rating, and how long will the effects last?
Bankruptcy can have a significant impact on your credit rating, as it will be listed on your credit report for a period of up to 5 years. This can make it difficult to obtain credit or loans in the future, as lenders may view you as a high-risk borrower. Brisbane Debt Solutions can assist you in understanding the impact of bankruptcy on your credit rating, and can provide advice on steps you can take to rebuild your credit rating over time.
Can bankruptcy affect my employment, and how can Brisbane Debt Solutions assist in addressing this?
Bankruptcy generally does not affect your employment directly, although it may be necessary to disclose your bankruptcy status to your employer or potential employers in certain circumstances. Brisbane Debt Solutions can assist you in addressing any employment-related issues that may arise as a result of bankruptcy, such as negotiating with employers or providing advice on how to address disclosure requirements.
How does bankruptcy affect my assets, and how can Brisbane Debt Solutions assist in protecting them?
In bankruptcy, your assets may be subject to seizure and liquidation by the trustee in order to pay off your debts. However, there are certain assets that are exempt from seizure, such as necessary household items, tools of trade, and superannuation. Brisbane Debt Solutions can assist you in understanding your rights and obligations with respect to your assets, and can provide advice on how to protect them to the fullest extent possible under the law. This may involve negotiating with the trustee, initiating legal proceedings, or providing guidance on asset protection strategies.