When Declaring Bankruptcy – Can I travel overseas?
1. When Declaring Bankruptcy; Can I Travel Overseas?
When Declaring Bankruptcy; Can I Travel Overseas?
As long as you do the things that you are required to do while bankrupt, you can get permission from the trustee to take a trip overseas from The Northern Territory.
This generally involves paying $150 to the Trustee and filling in an online form.
It is doable but there are some things you need to know.
Give Bankruptcy Darwin a call at 1300 795 575 if you are not sure, and we can guide you through the finer points about traveling overseas while bankrupt.
2. Can I Keep My House Even When Declaring Bankruptcy?
Can I Keep My House Even When Declaring Bankruptcy?
Whether you keep your home or not will boil down to the amount of equity is in the property.
If, for instance, you own a home that is worth $500,000 and you owe $200,000, there is $300,000 of equity in the house.
In The Northern Territory, the Trustee will more than likely sell the house to pay off your debt.
However, if you owe the full $500,000, you will be able to remain in your house, as long as you can pay the rates and mortgage.
With joint ownership, the rules change, and I will discuss this in another video.
Bankruptcy Darwin can give you all the information, call us on 1300 795 575.
3. When Would My Overseas Travel Be Restricted?
When Would My Overseas Travel Be Restricted?
As long as you remain compliant with the conditions of your bankruptcy, overseas travel will not be a problem.
Make sure you stay in contact with your Trustee and provide everything asked of you, including paperwork or any other information.
There are some exceptions, of course. If you would like to be sure, give Bankruptcy Darwin a call today on 1300 795 575.
4. What Happens to My Credit Rating?
What Happens to My Credit Rating?
It is a popular misconception in The Northern Territory that your credit rating will never ever recover from bankruptcy.
The reality is, after just 5 years your credit rating slate is wiped clean and you can start again.
Once the 3 year bankruptcy period is over, you will have the ability to get loans for secured assets, like vehicles and houses.
On your credit file, it will show as ‘Discharged Bankrupt’, and this will last for the two years following your bankruptcy up until the 5-year cycle begins again.
More questions? Call Bankruptcy Darwin on 1300 795 575.
5. Will I Ever Have the Capacity to Borrow Money Again Once I’m Bankrupt?
Will I Ever Have the Capacity to Borrow Money Again Once I’m Bankrupt?
You will be able to borrow for secured loans, such as car and home loans, after the 3 year bankruptcy period is up.
After 5 years, two years after the 3 year bankruptcy period has ended, your credit file will be refreshed and clear again.
6. Will I Lose My Car When Declaring Bankruptcy?
Will I Lose My Car When Declaring Bankruptcy?
It is not a given that you will lose your car when you file for bankruptcy. You can own a vehicle up to the equity value of $7,500.
This means that if you own a car worth $27,500, for example, and you have a loan against it for $20,000, you can keep the car.
To illustrate further, if you have a car worth $20,000 and you owe $20,000, you have $0 equity in the car, and you will be able to keep it, as long as you can keep up with the repayments.
7. Bankruptcy and Centrelink Debts
Bankruptcy and Centrelink Debts
For the most part, it has been our experience that Centrelink will not chase you for your debt to them during the 3 years of bankruptcy.
Increasingly more, we are seeing the Centrelink debt written off entirely after the 3 years of bankruptcy, although this is in no way a guarantee.
Things are constantly changing in The Northern Territory, and it is best to speak to our team of experts at Bankruptcy Darwin to get the full picture.
Call us for an obligation-free consultation on 1300 795 575.
8. What If I’m Overdue on My Car Repayments, Can I Still Go Bankrupt?
What If I’m Overdue on My Car Repayments, Can I Still Go Bankrupt?
Most people are behind on all of their repayments when considering bankruptcy. Usually, you will be allowed 2 to 3 missed payments on your car loan before they repossess the car.
However, even if your overdue car repayments have gone to court and become a legal issue, you can still file for bankruptcy and get yourself out of debt.
9. When Are the Creditors Informed of My Bankruptcy?
When Are the Creditors Informed of My Bankruptcy?
Firstly, we will help you gather all the information you require for your application for bankruptcy. Once that is all sorted, we will lodge the application for you. After about two weeks, you will get a written notification, as long as there are no additional requests for details. This is also when you will get your Bankruptcy File Number.
At the same time, all your creditors will be contacted and notified that they can now communicate with your bankruptcy trustee instead of you.
Call Bankruptcy Darwin with any questions you have on 1300 795 575.
10. Will Anyone Come to My Home?
Will Anyone Come to My Home?
The bankruptcy process is designed to safeguard you so that you can move on in your life without debt. Going bankrupt will not mean that people will be able to come to your home whenever they like. On the contrary, in The Northern Territory, bankruptcy protects you from creditors or bailiffs.
The most contact you will ever get when you declare bankruptcy is a letter or an email, and at Bankruptcy Darwin we can assist you to make the process even easier than that.
Call us with any questions at all on 1300 795 575.
11. Can I Have My Bankruptcy Annulled?
Can I Have My Bankruptcy Annulled?
Yes. There are provisions within the Bankruptcy Act that make it possible for a bankrupt individual to have their bankruptcy annulled and the bankruptcy record removed from your credit history. In bankruptcy terms, this technique is generally described as a Section 73 proposal and it is an approach where everybody wins. Essentially, the trustee contacts your creditors, presents them with your offer, which is substantially less than the original debt owed, the condition is that the creditors clear your credit file clean. This process typically takes a couple of weeks and there are costs involved. A section 73 annulment proposal can be done at any time throughout the 3 years you are bankrupt although it is most likely to be successful if attempted later in your bankruptcy.
At Bankruptcy Darwin we have a wealth of experience and skills in Section 73 proposals, we combine this with our proven strategies to bring our customers through their bankruptcies in one piece, all ready to start over. Call us on 1300 795 575 to see how we can help you.
12. Can I Still Go Through the Process of Declaring Bankruptcy If I’m Already in a Debt Agreement, Personal Insolvency Agreement or in a Debt Consolidation Loan Contract?
Can I Still Go Through the Process of Declaring Bankruptcy If I’m Already in a Debt Agreement, Personal Insolvency Agreement or in a Debt Consolidation Loan Contract?
Yes. In the NT, if you are currently in a Debt Agreement, Personal Insolvency Agreement or Debt Consolidation arrangement, you can still declare bankruptcy.
You will need to apply to be released from these agreements, but we can help you fill out the relevant paperwork. So call us at Bankruptcy Darwin with any concerns you have on 1300 795 575.
13. What Debts Won’t Declaring Bankruptcy Remove?
What Debts Won’t Declaring Bankruptcy Remove?
The following are the debts that are not removed by bankruptcy:
HECS or FEE Help
Civic Fines like Speeding or Toll fines
Secured Creditor Debts, like car or home loans (debt is secured against the asset)
If you cannot make a payment on your home or vehicle, the bank or the trustee will sell the asset, and the debt will end up being an unsecured asset. The unsecured debt can then be removed with bankruptcy so you will not be stuck with it.
In the NT there are some other debts that will not be removed with bankruptcy, to find out call us at Bankruptcy Darwin on 1300 795 575 to make sure.
14. Is There a Limit to the Amount of Debt I Can Be in Prior to Declaring Bankruptcy?
Is There a Limit to the Amount of Debt I Can Be in Prior to Declaring Bankruptcy?
In the NT and across Australia, bankruptcy is not an option for a debt under $5,000.
Here at Bankruptcy Darwin, we always discourage you from deciding on bankruptcy for a small amount of debt. It is very important to consider your options very carefully and we can help you work out what is right for you.
Although there is a lower limit, there is no upper limit on the amount of debt you can owe when applying for bankruptcy.
You can owe millions of dollars, across a range of different circumstances, and still begin the bankruptcy process to recover your life.
To find out more contact us on 1300 795 575.
15. What is the Difference Between a Secured and Unsecured Loan?
What is the Difference Between a Secured and Unsecured Loan?
The difference between a secured loan and an unsecured loan is that a secured loan has a secured asset attached to it. These are assets such as cars or homes, because they are the security for the loan. If you do not make repayments, the bank just sells the asset and recoups the money.
Do not always presume that your loan is secured or unsecured, call your bank or lender to find out for sure. There are other security models and different products that banks sell, so if you are not exactly sure, give us a call at Bankruptcy Darwin on 1300 795 575 and we will walk you through your case.
16. How Can I Make Sure That You Will Be Successful in Making Me Bankrupt?
How Can I Make Sure That You Will Be Successful in Making Me Bankrupt?
At Bankruptcy Darwin we will always make sure that you qualify for Bankruptcy before we proceed with assisting you in your application. There are some situations where you will not be able to apply, and these are relatively straightforward, for instance if you have a foreign, not Australian debt.
In many cases however, you will qualify for bankruptcy and by calling 1300 795 575 we can start the process together.
17. What If I’m Not Completely Sure Who I Owe Money To?
What If I’m Not Completely Sure Who I Owe Money To?
Applying for a credit report to find out the complete list of creditors is not the complete solution.
Some creditors won’t report your debt to a credit agency or credit reporting agency, and you may find that a bill turns up on your front door quite unexpectedly. This is part of life, it is easy to forget who you owe money to particularly if you have moved or have lost contact with the creditor.
At Bankruptcy Darwin we can help you to simply add the debt to your list of creditors, and then have it written off, as long as the debt was incurred before you declared bankruptcy. Call us to find out on 1300 795 575.
18. I’ve Had a Motor Vehicle Accident. Will the Debt Be Covered in Bankruptcy?
I’ve Had a Motor Vehicle Accident. Will the Debt Be Covered in Bankruptcy?
IIf you were denied an insurance claim because the insurance company discovered you to be ‘at-fault’, then that debt cannot be wiped through bankruptcy. Your debt can only be cleared if you can show through the courts that you were not at fault.
There is, of course, more to it than that, so please call Bankruptcy Darwin on 1300 795 575 to discuss your unique set of circumstances.
19. Can I Also Have My Business Debts Removed with my Personal Bankruptcy?
Can I Also Have My Business Debts Removed with my Personal Bankruptcy?
It is possible to have your business debts cleared together with your personal debts, and at Bankruptcy Darwin we can assist you to do this. Bankruptcy in The Northern Territory is usually applicable only to individuals, however, if you are a Sole Trader, some of the business debts can be eliminated. The rules become more complex if you are in a Partnership or trading through a Trust or a Company, however, you do have options which we can guide you through.
Be aware, there are a number of regulations and knock-on effects with this process, so please call us on 1300 795 575 if you are considering this.
If you are considering liquidating your business to clear your business debt, we strongly advise you to consult with us before you decide.
20. Can I Pay Out My Bankruptcy Debt and Have It Annulled?
Can I Pay Out My Bankruptcy Debt and Have It Annulled?
Can I Pay Out My Bankruptcy Debt and Have It Annulled?
Let us say you win big on the pokies, and you can now cover all your debts. Yes, it is possible to pay off those debts and have the bankruptcy annulled.