I’ll never borrow again

Many clients assume or have heard that bankruptcy impacts the rest of their lives. In a lot of circumstances, this simply isn’t true. 

Your credit record will be impaired for 5 years in total. The NPII will forever hold a record of your bankruptcy.

But what’s the difference between these two records?

Watch our video to learn more.

I can’t travel overseas

Overseas travel is definitely possible, and the process for getting consent is simple. 

Whether you’re travelling for work or pleasure, your trustee can provide permission. Getting consent usually comes down to whether or not you’re meeting your obligations in bankruptcy.

Most people find that doing the right things in bankruptcy typically result in their overseas travel applications being approved. Watch our video to learn more.

I’ll lose my house

Contrary to popular belief, this doesn’t necessarily have to happen.

“Will I lose my house?” is a good question and the answer can vary depending on your circumstances.

In order to understand how it might be possible to retain property in bankruptcy, you must first understand that your interest in real property will vest in the trustee after you become bankrupt (vest basically means to come into possession or ownership). Watch our video to learn more.

My income will be taken

When people first talk to us, many seem to think that they can only earn up to a certain amount before everything else is “taken” in bankruptcy. This is simply not true.

If you earn over a certain amount (we call it the Base Income Threshold or Actual Income Threshold), then you might have to pay half of your income over this amount. Half – not all – and the amount you pay is affected by how many dependants you support. Watch our video to learn why.

I’ll lose my car

Lots of people seem to think this is true, but in many cases, this concern is genuinely unwarranted.

Not only are asset limits in place to protect your vehicle up to a certain amount, but vehicles also depreciate in value over time. As your vehicle depreciates, so too does your equity in the vehicle. This can result in it falling within the threshold and being protected in bankruptcy.

Watch our video to learn more.

I’ll lose my job

Many people assume that their employment will be terminated because of bankruptcy, but in our experience, this rarely happens.

Do your research – review your employment contract and take a look at the conditions of any professional memberships and licenses you hold.

It pays to know exactly where you stand before you assume you’ll be affected.

Watch our video to learn more.