So, you have your bankruptcy number and you are ready for your new life, what will that life look like?
Well, the answer is – not much different than it did before - except you won’t have the financial stress that sucked the joy from your life.
The calls from your creditors will stop - what a relief!
And because bankruptcy has cleared most of your debts you will be able to keep more of your pay. If you have business related debts, bankruptcy will clear those debts as well. With most of your debts cleared, you now have fewer bills and more pay in your pocket – how good is that?
Speaking of pay, bankruptcy won’t affect your income unless you are a high-income earner. If you are a high-income earner that is great! You may have to make some payments to your bankrupt estate, but the good news is you get to keep most of your pay. Not only that – the statutory super your employer pays for you is safe as well.
If your income comes from Centrelink you don’t have to worry, your pension and other Centrelink payments are not affected by your bankruptcy.
What about your privacy? Don’t worry no one will know you are bankrupt unless they were part of your bankruptcy. So, in most cases no one will know and that includes your employer.
Many people think that someone will come to their house and go through their personal assets, this is not true. No one comes to your house, your household furniture, whitegoods, electronics and personal affects are all safe. And if you need to replace any of these items during bankruptcy you can.
Sometimes, you will want to move to a new house, if your rental history is good you will be able to find a new place to rent. If you and your partner own your own home and your partner is not filing for bankruptcy you may be able to stay in your home. Why not talk to us about how this could work for you.
Having a place to live is important but you will need to have the power, gas and these days internet connected, make sure you keep these payments up to date, if you can, this will ensure that your provider will be happy to keep you connected and the lights on.
During bankruptcy you should try to save, you can save without limit, but you are not allowed to invest while you are bankrupt so keep your savings in a standard savings account. One of the great things about saving money is that you can go on a holiday. After so long struggling with debt you may not have had a proper holiday in years, this can be especially true if you owed a business. You can use your savings for an overseas holiday if that is what you want to do. Just apply to your trustee for permission to travel, get the approval and bon voyage!
For most people bankruptcy is a great deal they can clear their debts and get a fresh start, part of that deal is that if you have assets that are not protected by bankruptcy then those assets will go into your bankrupt estate and be used repay a portion of your old debts, your trustee will take care of this for you.
If you want to get the most out of bankruptcy then take the time to Understand Bankruptcy, make Understanding Bankruptcy the key to your new future.