Frequently Asked
Questions

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 travel overseas from Australia.

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 Experts a call at 1300 795 575 if you are unsure, and we can guide you through the finer points about traveling overseas while bankrupt.

Can I Keep My House Even When Declaring Bankruptcy?

Whether you keep your house or not will come down to how much equity is in the property.

If, for example, you own a house that is worth $500,000 and you owe $200,000, there is $300,000 of equity in the house.

In Australia, the Trustee will most likely sell the house to pay off your debt.

However, if you owe the full $500,000, you will be able to stay in your home, 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 Experts can give you all the facts, call us on 1300 795 575.

When Would My Overseas Travel Be Restricted?

As long as you remain compliant with the conditions of your bankruptcy, overseas travel will not be an issue.

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’d like to be sure, give Bankruptcy Experts a call today on 1300 795 575.

What Happens to My Credit Rating?

It is a common misconception in Australia that your credit rating will never recover from bankruptcy.

The fact 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 be able to get loans for secured assets, like cars and houses.
On your credit file, it will show as ‘Discharged Bankrupt’, and this will last for the two years following your bankruptcy until the 5-year cycle begins again.

More questions? Call Bankruptcy Experts on 1300 795 575.

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.

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.

Bankruptcy and Centrelink Debts

In most cases, it has been our experience that Centrelink will not chase you for your debt to them during the 3 years of bankruptcy.

More and more, we are seeing the Centrelink debt written off altogether after the 3 years of bankruptcy, although this is in no way a guarantee.

Things are always changing in Australia, and it is best to speak to our team of experts at Bankruptcy Experts to get the full picture.
Call us for an obligation-free consultation on 1300 795 575.

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.

When Are the Creditors Informed of My Bankruptcy?

Firstly, we will help you gather all the information you need for your application for bankruptcy. Once that is all sorted, we will lodge the application for you. After about two weeks, you will receive a written notification, as long as there are no further requests for information.

This is also when you will get your Bankruptcy File Number.

At the same time, all your creditors will be contacted and informed that they can now liaise with your bankruptcy trustee instead of you.
Call Bankruptcy Experts with any questions you have on 1300 795 575.

Will Anyone Come to My Home?

The bankruptcy process is designed to protect you so that you can move forward in your life without debt. Going bankrupt will not mean that people will be able to come to your house whenever they like. On the contrary, in Australia, bankruptcy protects you from creditors or bailiffs.

The most contact you will ever receive when you file for bankruptcy is a letter or an email, and at Bankruptcy Experts we can help to make the process even simpler than that.

Call us with any questions at all on 1300 795 575.

Can I Have My Bankruptcy Annulled?

Yes. There are provisions within the Bankruptcy Act that enable a bankrupt individual to have their bankruptcy annulled and the bankruptcy record removed from your credit history. In bankruptcy terms, this technique is usually 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 usually takes a few weeks and there are fees involved. A section 73 annulment proposal can be done at any time during the 3 years you are bankrupt although it is more likely to be successful if attempted later on in your bankruptcy.

At Bankruptcy Experts we have a wealth of experience and skills in Section 73 proposals, we combine this with our proven strategies to bring our clients through their bankruptcies unscathed, ready to start over. Call us on 1300 795 575 to see how we can help you.

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 Australia, if you are already in a Debt Agreement, Personal Insolvency Agreement or Debt Consolidation arrangement, you can still file for 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 Experts with any questions you have on 1300 795 575.

What Debts Won’t Declaring Bankruptcy Remove?

The following are the debts that are not removed by bankruptcy:
Centrelink
HECS or FEE Help
Civic Fines like Speeding or Toll fines
Child Support
Overseas debts
Secured Creditor Debts, like car or home loans (debt is secured against the asset)

If you cannot make a payment on your house or car, the bank or the trustee will sell the asset, and the debt will become an unsecured asset. The unsecured debt can then be removed with bankruptcy so you will not be stuck with it.

There are some other debts that will not be removed with bankruptcy, to find out call us at Bankruptcy Experts on 1300 795 575 to make sure.

Is There a Limit to the Amount of Debt I Can Be in Prior to Declaring Bankruptcy?

In Australia, bankruptcy is not an option for a debt under $5,000.
Here at Bankruptcy Experts, we always discourage you from choosing bankruptcy for a small amount of debt. It is important to consider your options 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 filing 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.

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 don’t make repayments, the bank simply sells the asset and recoups the money.
Do not always assume that your loan is secured or unsecured, contact 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 sure, give us a call at Bankruptcy Experts on 1300 795 575 and we will walk you through your case.

How Can I Make Sure That You Will Be Successful in Making Me Bankrupt?

At Bankruptcy Experts we will always make sure that you qualify for Bankruptcy before we go ahead with assisting you in your application. There are some situations where you will not be able to apply, and these are fairly straightforward, for instance if you have a foreign, not Australian debt.

In most cases though, you will qualify for bankruptcy and by calling 1300 795 575 we can start the process together.

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 might 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 especially if you have moved or have lost contact with the creditor.

At Bankruptcy Experts 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 filed for bankruptcy. Call us to find out on 1300 795 575.

I’ve Had a Motor Vehicle Accident. Will the Debt Be Covered in Bankruptcy?

If you were denied an insurance claim because the insurance company found you to be ‘at-fault’, then that debt cannot be wiped through bankruptcy. Your debt can only be cleared if you can prove through the courts that you were not at fault.
There is, of course, more to it than that, so please call Bankruptcy Experts on 1300 795 575 to discuss your unique set of circumstances.

Can I Also Have My Business Debts Removed with my Personal Bankruptcy?

It is possible to have your business debts cleared along with your personal debts, and at Bankruptcy Experts we can help you to do this. Bankruptcy in Australia is generally applicable only to individuals, however, if you are a Sole Trader, some of the business debts can be removed. 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 contact 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 speak with us before you decide.

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.