Things You Should Know Before Declaring Bankruptcy
Brisbane Debt Solutions can provide you with advice tailored to your specific circumstances, and determine the best course of action for dealing with any unmanageable debts.
Some things you should know before declaring bankruptcy include:
- Bankruptcy can often be avoided, as it is just one of several ways to deal with your debts. Other formal options include negotiated arrangements and debt agreements.
- Bankruptcy can have a variety of negative consequences, including restrictions on your ability to obtain credit, travel overseas or hold certain types of employment.
- Bankruptcy does not release you from all debts. While bankruptcy can relieve individuals of liability for most unsecured debts, there are exceptions.
- A publicly-accessible National Personal Insolvency Index (NPII) will contain your name after you apply for bankruptcy.
- Bankruptcy can affect your ability to obtain—and your ability to pay back—credit. If you apply for credit over a certain amount, you must disclose your bankruptcy.
- Credit reporting agencies keep a record of your bankruptcy for 5 years from the date you file for bankruptcy or from the date you stop making payments on a previous bankruptcy, whichever is later.
Bankruptcy is a legal procedure. Seeking professional advice before you declare bankruptcy is advisable.
What is Bankruptcy FAQ’s
What is bankruptcy?
Bankruptcy is a legal process that individuals can enter into to manage their unmanageable debts. It involves a trustee being appointed to manage the individual’s finances and assets, and the individual is released from most of their debts.
What are the consequences of bankruptcy?
The consequences of bankruptcy can include damage to credit rating, restrictions on obtaining credit, and loss of assets such as property and investments. Additionally, bankrupt individuals have certain obligations to fulfill, such as making income contributions and reporting changes in income or employment.
How long does bankruptcy last?
The length of bankruptcy can vary depending on individual circumstances, but typically lasts for three years and one day. However, this can be extended in certain circumstances, such as if the individual fails to fulfill their obligations or if they have previously been bankrupt.