If you're in more debt than you can handle, bankruptcy could give your life back.
We can help you understand the bankruptcy alternative,
guiding you every step of the way.
Truth: No. It will be harder, but it will not be impossible. Lenders understand risk and there are many who will lend to people who have poor credit history. Our Insolvency and Reconstruction Experts can help you with more information.
Truth: Not so! All our experts provide an initial consultation free of charge – that’s right, FREE! And we ARE experts – we keep the promises we make and we don’t make promises we can’t keep. With over 150 combined years of insolvency experience, one of our Insolvency and Reconstruction Experts will provide you with clear and no-nonsense advice and assistance.
Truth: A non-bankrupt spouse will generally be immune from adverse credit reporting following the bankruptcy of their spouse. Clearly, any joint debts will need to be dealt with, but there is no direct relationship between the credit ratings of spouses merely because of the bankruptcy of one or the other. Our Insolvency and Reconstructions Experts can explain this in more detail.
Truth: Expert advice is often not expensive and initial consultations are free of charge. Once appointed, a bankruptcy trustee is paid from the assets available in the estate. Also, the Federal Government provides a free trustee service - www.afsa.gov.au – one of our Insolvency and Reconstruction Experts can provide you with more detail.
Truth: Nearly all of your debts, called ‘provable’ debts, are wrapped up by your bankruptcy. Whilst you can choose to deal with any of your creditors after you become bankrupt, you are not obliged to. Your bankruptcy trustee will take control of communicating with your creditors and any harassing contact should be directed towards you trustee. We are skilled communicators and are often able to de-escalate confrontational situations so that you can get on with your life. Contact one of Insolvency and Reconstruction Experts for more information on how we use effective communication and expectation management as part of our overall strategy to manage your estate.
Truth: There are in fact very few debts that are not provable and extinguished by bankruptcy. Examples of those debts that are not extinguished by bankruptcy are court imposed fines, child support/maintenance payments, certain student loan debts (like HELP and Abstudy), debts incurred after the date of bankruptcy and debts incurred by fraud. It is your trustee’s job to assess all claims made against your estate. Contact one of our Insolvency and Reconstruction Experts for additional information.
Truth: Bankruptcy is not publicly advertised and, subject to certain limitations, you are not required to disclose your bankruptcy to anyone. Your Bankruptcy will appear on the National Personal Insolvency Index (NPII) and that is a searchable register (for a fee). The information is also recorded on your credit report. Our Insolvency and Reconstruction Experts can provide you with more information.
Truth: This is one of the biggest myths and is simply not true. There are certain classes of assets that are specifically prevented from being deal with by your trustee. You can keep a car and tools relating to your income earning trade (up to certain limits), you can keep your superannuation as well as any amounts paid to you as compensation for an injury you have suffered (including assets purchased with such an amount). There are other assets that you may keep so long as you continue to service a debt associated with them (such as your home), subject to certain conditions. Our Insolvency and Reconstruction Experts can tell you more.
Truth: Bankruptcy has an impact on your credit, but generally it only appears on your credit file for a period of 5 years from the date of filing or 2 years from the date your bankruptcy ends (whichever is the later). There is no doubt your credit score will be effected and this will have an impact on your ability to borrow, but there are lenders who will deal with people with lower credit scores and often, this is part of a path back to restoring your credit rating. Our Insolvency and Reconstruction Experts can explain more.
Truth: Not so. We all make mistakes. Bankruptcy has been specifically designed to allow people struggling with financial distress to start over again. In fact, the Government has recently identified that there is a need to support those in business who take responsible financial risks and has foreshadowed reducing the term of bankruptcy to just 1 year. We are connected with a wide variety of professionals who can help you to put your life back together and plan for a brighter future, post-bankruptcy. Ask one of our Insolvency and Reconstruction experts today.