If you are considering filing for Bankruptcy, then it is only expected that you would have a lot of questions that need to be answered, In fact, you should have many questions because it is important that you fully understand what Bankruptcy is, what is means and how it will affect your life, before making any decisions.

Here are 4 frequently asked Bankruptcy questions and their answers so you can learn more about Bankruptcy and what it means for you.

 

Will I be able to keep my house?

When you file for Bankruptcy, you risk losing your house depending on a few factors such as equity.

If you have enough equity in your home to repay several debts, then your house may be sold. However, if you have no equity in your house, you may be able to keep it as long as you keep paying your mortgage on time.

 

Will I be able to keep my car?

There is a threshold that generally determines whether or not you will be able to keep your car. If your car has an equity value less than $7,700 then you may be able to keep your car. If you go over this limit then your Trustee may claim your car to repay debts.

 

Will I be able to travel overseas?

A debtor’s ability to travel overseas whilst Bankrupt is limited. While it is still possible, they must first obtain the permission from their Trustee and must be back by the date specified by them. If not, then there may be severe consequences such as an extension of the Bankruptcy period.

 

Will this affect my employment and chances of employment in the future?

Filing for Bankruptcy will not affect your ability to work. However, there are certain professions and job positions that a debtor, regardless of whether their Bankruptcy period has ended, will not be allowed to work in.

Whatever your employment status or job position, you need to inform your Bankruptcy Trustee and notify them of any changes that may occur such as a change in jobs or increase and/or decrease of income.

 

If you have any other Bankruptcy questions that you would like answered, or if you would like to know more, then please don’t hesitate to call Australian Bankruptcy Services for 24/7 Bankruptcy advice on 1800 462 767.