LATEST ARTICLES
  • Handle Money
  • Eliminate Debt
  • Bankruptcy

You may have been led to believe that after a certain amount of money problems and unpaid debt, that you have no choice but to file for bankruptcy. There are many other options to exhaust before filing for bankruptcy.

 

signing filing for bankruptcy

 

The cons of filing for bankruptcy

Before filing for bankruptcy, it is important to know what kind of impact it can have on you, not only today, but in the years to come.

  • Bankruptcy does not release you from all debts. Every situation is unique, therefore it is important to check with your creditor to obtain specific information on which debts will be excluded, however blow is a list of debts that are often not covered by bankruptcy:
    • HECS or HELP student loans
    • Penalties and fines ordered by a court
    • Debts you incur after your bankruptcy begins
    • Child support
  • You will have a trustee. In the case of voluntary bankruptcy, this may be someone of your choosing. The trustee will work with yourself and creditors to come to a sound outcome. You will be obligated to provide your trustee with any and all information pertaining to your finances.
  • Your trustee may be able to sell your assets. This excludes any tools you require for your job, a vehicle (in some cases), and household goods. Any other assets are at risk of being sold, and you therefore cannot dispose of them nor sell them yourself. 
stress bankruptcy debt

 

  • Credit reporting agencies will keep a record of your bankruptcy for five years from the date you became bankrupt, or two years from when your bankruptcy ends, whichever is later. This is likely to affect your ability to obtain a line of credit during this time.
  • Bankruptcy affects your ability to travel overseas. After filing for bankruptcy, you will need to acquire permission before taking any trips out of the country. 
travel overseas bankruptcy

 

  • Your name will permanently be listed on the National Personal Insolvency Index (NPII). The NPII is accessible and searchable by the public. Other information such as your residential address, date of birth, and some details of your bankruptcy will also be listed.
  • You will need to inform your trustee if any changes are made to your job or income. This includes if your salary changes in any way, if you stop working, or if you begin a new or additional job.

 

contact us bankruptcy debt

 

There may be another way

While bankruptcy might be the best solution in some cases, we have a variety of different options to help our clients. We have many different options for our clients depending on their unique circumstances and financial status. Our consultants will always exhaust all other options before turning to bankruptcy. If you are looking for an alternative to bankruptcy, contact one of our consultants for an initial meeting.

 

 

 

 

You might find these interesting

Ready to become debt free?

Speak with one of our specialists to start your future

About Beyond Debt
Get Help