Bankruptcy

Bankruptcy,

Everybody has heard about bankruptcy but most people have the wrong idea.

The point of bankruptcy is to help people with debt they cant afford a fresh start. There are 2 was to go bankrupt you creditors can make you bankrupt or you can file for bankruptcy voluntarily. Anyone who you owe $2000 to or more can make you bankrupt. Most people however choose the voluntary path.

Bankruptcy allows people who dont have big incomes and few assets to clear all of their unsecured debt. If you do have a large income you may be required to make some payments during the bankruptcy period.

If you own a home it will be sold or the equity will be released to your creditors. Bankruptcy lasts for 3 years and is recorded on your credit history for 7 after this time the slate is wiped clean.

The important features of a Bankruptcy are
•All unsecured debts are cleared instantly
•Your creditors can no longer contact you
•Cars up to the value of $6500 wholesale are protected
•Your superannuation is protected
•Tools of the Trade are protected

If you have a car loan and you want to keep the car you will have to keep making payments on the car loan.

Bankruptcy can sound great but it isnt for everyone.
•Not all debts are included in bankruptcy for example Child support and HECS debts
•You cant travel overseas during the bankruptcy period
•Certain jobs may be affected like accountancy, security and director of a company
•You may have to pay a deposit bond for some services.

Tens of Thousands of people file for bankruptcy every year. If you have debt you cant afford to repay it may give you a fresh start.

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Education

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• Bankruptcy
• Bankruptcy Myths
• Bankruptcy Australia