In Show 081- Why You Should Avoid Bankruptcy originally broadcast on Facebook Live on Monday 16 April 2018 we explore this interesting topic.
Today on Fast Fix Monday we continue our discussion about bankruptcy. There are a number of consequences when you declare bankruptcy. Those include:
- A trustee will be appointed to manage all of your financial affairs. You will have to give up all the information related to your debts and other financial information.
- Bankruptcy will affect your income and your employment. You will have a set amount of money you will be allowed to earn for yourself. That amount depends on how many dependents to have. Everything else will go to the trustee.
- Bankruptcy doesn’t let you avoid all your debts. It will allow you to wipe out much of your debt but things like fines and child maintenance cannot be eliminated.
- Bankruptcy can affect your ability to travel overseas. You may have to hand in your passport. You will need consent from our trustee who may not let you go.
- If you’re bankrupt your name will forever appear in the National Personal Insolvency Index. People will be able to search that index and find that you’ve gone bankrupt in the past.
- Bankruptcy will affect you ability to obtain credit in the future. Credit reporting agencies will keep a record of your bankruptcy for five years from the date you declared.
- The trustee may sell your assets. Your allowed to keep your household goods and a vehicle as well as the tools of your trade. But everything else can be sold to pay your debts.
- You may lose the right to continue legal action. If you are in the midst of a lawsuit and the trustee will decide if that case will continue.
- Bankruptcy lasts for three years. You will have to declare all your financial assets and liabilities. You have to provide all that information before the bankruptcy comes into effect.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.