Frequently Asked Questions
Do I qualify for bankruptcy?
The answer will probably be yes. Almost 100% of our inquirers are eligible to declare bankruptcy. Some factors that may prevent eligibility are if you earn too much money, you have assets worth a lot of money, and other reasons. Call us to find out more about this.
How does bankruptcy work?
Bankruptcy is a legal process where you're declared unable to pay your debts. It can release you from most debts, provide relief and allow you to make a fresh start. When you become bankrupt, a bankruptcy trustee is appointed to you. A trustee is a person or body who manages your bankruptcy.
What can Rebound Bankruptcy do for me?
Applying for bankruptcy can be a very daunting and complicated process. You don’t need to add to the stress that you already feel. We will take care of the whole process for you. For your peace of mind, we take pride in having a 100% success rate with our clients applications.
What kind of debts does bankruptcy cover?
Bankruptcy covers most unsecured debts, such as:
credit and store cards
unsecured personal loans and pay day loans
gas, electricity, phone and internet bills
overdrawn bank accounts and unpaid rent
medical, legal & accounting fees.
Bankruptcy releases most of these debts when it ends.
In some cases, you may need to confirm with the creditor to see if bankruptcy covers the following:
Australian Taxation Office debts
victims of crime debts
What kind of business debts are covered through bankruptcy?
If you are in business as a sole trader, your debts are also covered through bankruptcy. If you are a personal guarantor for company debts, they may also be included in your personal bankruptcy.
Will I have to go to court?
No! Surprisingly, a lot of people think that declaring bankruptcy is breaking the law and they'll have to go to court. The Bankruptcy Act is there for people like you to have a chance to get a fresh start. The whole process can be done from within the walls of your own home.
How long will the process take?
Well, a lot of that depends on you and how quickly you can provide us with your information, but you can be declared bankrupt in just a few days!
Is bankruptcy common among Australians?
Last financial year there were 27058 cases of Personal Insolvency in Australia. So don't think that you will be alone in this. The Bankruptcy Act of Australia is there to give people like yourself a chance to wipe the slate clean.
Can I keep my assets?
If you have a house, and there is little or no equity in it, then it is possible that the bankruptcy trustee will allow you to continue with your mortgage repayments and remain living there. The trustee will then let you know when they no longer have an interest in the property. With vehicles, you can have equity value to $8000. Equity is the difference between what the house or car is worth, compared to what you owe on it.
How long does bankruptcy last?
Bankruptcy lasts for 3 years and 1 day from the time that your application is approved.
Is there a minimum amount to declare bankruptcy?
No, there is no minimum amount. Remember, a $2000 debt for you could feel the same as a $100,000 debt to someone else. People still feel the same stress and anxiety no matter what.
How much can I earn?
There is no limit on how much you can earn, but if you earn more than $1135 after tax per week, and you have no dependants, you just need to contribute half of the amount above the threshold back to your creditors for the period of your bankruptcy.. The more dependents you have, the more you can earn.
Will my bankruptcy effect my partner?
No. It will only effect your partner if the debts are in joint names with them, or if they are a guarantor for your debt.
Can I run my own business?
Yes you can. But it has to be as a sole trader under your own name. You won't be able to be a director of a company for the duration of your bankruptcy.
Can I declare bankruptcy more than once?
Yes you can. Contact us to find out more about it.
Can I still travel overseas?
Yes you can, but you need to receive written permission from your bankruptcy trustee before you go. We can help you with this process.
Consequences of bankruptcy?
Some of the consequences of bankruptcy are as follows:-
You will have a trustee that will manage your bankruptcy. They can either be a public or private trustee, depending on your situation.
Bankruptcy may effect your income. employment and business.
Bankruptcy may not release you from all of your debts.
Your ability to travel overseas may also be effected.
Bankruptcy can also effect your ability to obtain credit.