Bankruptcy can have many consequences but for most, the thought of eliminating financial burden can help overcome the stressful situation. Understanding bankruptcy and its impacts are essential when it comes to making correct choices for your future.
Myth 1. You can’t travel whilst bankrupt
Many people think being bankrupt blacklists you from traveling overseas. A bankruptcy trustee should let you travel overseas, as long as you have fulfilled all tasks you have been asked to do by your trustee and you have paid any compulsory income contributions. Your bankruptcy trustee will most likely ask for information such as how you are paying for the trip, your dates of travel and your travel destination. You do not need permission to travel within Australia.
Myth 2. Bankruptcy is expensive
Declaring bankruptcy through the government trustee is free unless you have to pay compulsory income contributions or you have assets which need to be sold.
Myth 3. You’ll lose everything in bankruptcy
Bankruptcy does not mean you lose everything. While owning assets, your trustee may need to sell them to pay your debts. In most cases, people can keep personal assets they own such as:
- Household furniture, appliances and sentimental items
- cash and bank account balances to cover daily living expenses (as long as it doesn’t exceed approximately $2,000)
- Motor vehicles to the value of $7,700
- Tools to the value of $3,750
- Superannuation, unless irregular contributions were made before bankruptcy to protect funds
We have over 10 years of experience in helping Australians overcome bankruptcy. If you would like to see how we can help you, please call our friendly Debt Agreement consultants at the Debt Agreement Advice Centre for expert advice debt consultants for expert advice on 1800 653 485 (toll-free).
