Life during Bankruptcy
The consequences of bankruptcy
Surprising life goes on as normal.
You will have money from your pay to live on, rather than using it all on your Debts.
So financially you will be better off and not debt stress.
You’re Income:
Your Income is protected by a threshold, and it can be banked and used for living expenses, or to replace household goods, or even to go on holiday.
View Income threshold
Tax Returns:
You can retain all refunds during bankruptcy, but they will be viewed as some of your net income, and may take your earnings over what is called the threshold amount.
If you owe money to the Tax Office, your refunds during bankruptcy will be held by the ATO against what you owe at the date of bankruptcy, but this only happens during the three years of the bankruptcy.
Paying Bills:
We recommend you apply for a debit card so you still have the convenience of a credit card if you are travelling or buying goods on line etc. A debit card works the same as a credit card except you use your own money and won’t be subject to the costs that incur if the card debt is not paid on time.
Bank Accounts:
You can save money from your pay, just be mindful not to purchaser or Invest in any assets, like property, shares, caravan, motor home, managed funds, etc.
Travel Overseas:
You must request permission from your trustee to travel overseas during the three years of the bankruptcy.
Contact from Trustee:
The trustee is not involved in your daily life.
Occasionally they may need something from you, which could mean providing them with a document, or having a chat on the phone.
Renting Property:
Some people have been unable to rent a property once they were subject to bankruptcy while others have had no problems. It most likely comes down to each individual agent.
Self Employed:
During bankruptcy, you must disclose your status when applying for, or obtaining goods and services on credit or by cheque for more than $5,778.00.
You will have money from your pay to live on, rather than using it all on your Debts.
So financially you will be better off and not debt stress.
You’re Income:
Your Income is protected by a threshold, and it can be banked and used for living expenses, or to replace household goods, or even to go on holiday.
View Income threshold
Tax Returns:
You can retain all refunds during bankruptcy, but they will be viewed as some of your net income, and may take your earnings over what is called the threshold amount.
If you owe money to the Tax Office, your refunds during bankruptcy will be held by the ATO against what you owe at the date of bankruptcy, but this only happens during the three years of the bankruptcy.
Paying Bills:
We recommend you apply for a debit card so you still have the convenience of a credit card if you are travelling or buying goods on line etc. A debit card works the same as a credit card except you use your own money and won’t be subject to the costs that incur if the card debt is not paid on time.
Bank Accounts:
You can save money from your pay, just be mindful not to purchaser or Invest in any assets, like property, shares, caravan, motor home, managed funds, etc.
Travel Overseas:
You must request permission from your trustee to travel overseas during the three years of the bankruptcy.
Contact from Trustee:
The trustee is not involved in your daily life.
Occasionally they may need something from you, which could mean providing them with a document, or having a chat on the phone.
Renting Property:
Some people have been unable to rent a property once they were subject to bankruptcy while others have had no problems. It most likely comes down to each individual agent.
Self Employed:
During bankruptcy, you must disclose your status when applying for, or obtaining goods and services on credit or by cheque for more than $5,778.00.
Your Credit Record (Credit File)
Bankruptcy listings last for 5 years on your credit report, after which your report will be free of any information regarding your bankruptcy.
This means that you will be able to apply for a mortgage, personal loan or credit card.
Bankruptcy listings last for 5 years on your credit report, after which your report will be free of any information regarding your bankruptcy.
This means that you will be able to apply for a mortgage, personal loan or credit card.