This is one of the most important questions someone considering declaring bankruptcy must ask. Once you become bankrupt, the following financial constraints apply:
- You can keep hold of personal effects and household goods like computers, televisions and furniture of reasonable value;
- The fact of your bankruptcy will appear on your credit report for five years and and on a public record called the National Personal Insolvency Index for life. In practical terms though, it will become difficult to obtain credit for up to five years. This is only the same time for listed bad debts;
- You might lose some of your assets such as your car or house worth more than $7,700;
- You are able to earn an income (a rate of $54,736.50 after tax for a person without dependants and $69,515.12 for a bankrupt who has two dependants). However, if your after-tax income exceeds the amount applicable to you, you will have to pay contributions to your trustee for your given creditors and;
- You might have to continue to pay your High Education, Centrelink or Child Support debts, as well as any court fines.
Unfortunately, when it comes to the question of how much a bankrupt can earn, there are some drawbacks. Furthermore, the financial repercussions of bankruptcy can adversely affect you immediately and in the future. This being said, it can provide you with a much needed fresh start.
Depending on your situation, bankruptcy can do one of the following:
- Provide you with a fresh start and have a positive impact on your life.
- Present significant repercussions including making it difficult for you to obtain credit for long periods of time; loss of home and other assets as well as limit future employment options.
For the first option to be achieved, it is imperative to get in contact with a bankruptcy advice counsellor. Understanding Bankruptcy has your best interests and your financial situation close at heart. Having experienced the pitfalls of bankruptcy our owner, Slade McInerney, provides a compassionate ear and provides sound advice on your options after making a declaration of bankruptcy.
Contact Us Today
For free and obligation-free advice on your financial situation post-bankruptcy declaration, contact the Understanding Bankruptcy professionals. We are dedicated to helping people considering making this big decision understand their options and what the future faces.
We understand the pressure on you and lend a compassionate, trusting ear as well as the necessary advice to getting back on and staying on your feet.
Call us on 1300 794 492 or submit an enquiry form on our contact page and we will get back to you with all the information you require regarding your post-bankruptcy declaration situation and how we can help you stay financially viable in the future.
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