How will bankruptcy affect me?

Let’s be clear; while bankruptcy is serious, it isn’t the end of the world.

The bankruptcy act is a pretty complex piece of legislation and how it applies to you will be determined by your individual circumstances.

In our experience, the most common areas of concern for people considering bankruptcy are; losing your income, losing your house, losing your car, losing your job or business, being unable to travel overseas, never being able to borrow again, hold bank accounts and/or rent property during bankruptcy.

The good news is that a lot of these fears may disappear once you understand how bankruptcy really works.

Will my income be taken?

Your income will be assessed under the bankruptcy act, so depending on how much you earn, you may need to make some payments.


Will I lose my house?

Real property isn’t a protected asset in Bankruptcy. Your share of that property will vest in your trustee, but there are a number of options that may help you keep your home.


Will I lose my car?

The bankruptcy act allows you to have a vehicle (used mainly for transport) worth up a certain limit.


employment and bankruptcy

Will I lose my job?

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


Can I go overseas?

Overseas travel is possible (with permission), and the process for getting consent is generally pretty simple.


Will I ever borrow again?

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


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