faqs

Frequently Asked
Questions

When Declaring Bankruptcy – Can I travel overseas?
1. When Declaring Bankruptcy; Can I Travel Overseas?
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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 approval from the trustee to travel overseas from Victoria.

This usually involves paying $150 to the Trustee and filling out an online form.

It is possible but there are some things you need to know.

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

When-Declaring Bankruptcy-Can-I-travel-overseas
2. Can I Keep My House Even When Declaring Bankruptcy?
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Can I Keep My House Even When Declaring Bankruptcy?

Whether you keep your home or not will boil 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 Victoria, the Trustee will most likely sell the house to settle your debt.

However, if you owe the full $500,000, you will be able to remain in your house, 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 Geelong can supply you all the facts, call us on 1300 795 575.

Can I keep my house even when declaring bankruptcy
3. When Would My Overseas Travel Be Restricted?
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When Would My Overseas Travel Be Restricted?

As long as you stay compliant with the conditions of your bankruptcy, overseas travel will not be a problem.

Make certain you remain in contact with your Trustee and provide everything asked of you, including documentation or any other information.

There are some exceptions, of course. If you want to be sure, give Bankruptcy Experts Geelong a call today on 1300 795 575.

When would my overseas travel be restricted
4. What Happens to My Credit Rating?
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What Happens to My Credit Rating?

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

The fact is, after just 5 years your credit rating slate is wiped clean and you can start again.

When the 3 year bankruptcy period is over, you will have the ability to get loans for secured assets, like vehicles 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 Geelong on 1300 795 575.

What happens to my credit rating
5. Will I Ever Have the Capacity to Borrow Money Again Once I’m Bankrupt?
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Will I Ever Have the Capacity to Borrow Money Again Once I’m Bankrupt?

You will have the ability to borrow for secured loans, such as car and home loans, after the 3 year bankruptcy period is up.

After 5 years, 2 years after the 3 year bankruptcy period has ended, your credit file will be refreshed and clear again.

Will I ever have the capacity to borrow money again once I’m bankrupt?
6. Will I Lose My Car When Declaring Bankruptcy?
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Will I Lose My Car When Declaring Bankruptcy?

It is not a given that you will lose your vehicle when you apply for bankruptcy. You can own a car up to the equity value of $7,500.

This means that if you own a vehicle 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 vehicle worth $20,000 and you owe $20,000, you have $0 equity in the vehicle, and you will be able to keep it, as long as you can stay up to date with the repayments.

Will I lose my car when declaring bankruptcy
7. Bankruptcy and Centrelink Debts
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Bankruptcy and Centrelink Debts

For the most part, 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 Victoria, and it is best to talk to our team of experts at Bankruptcy Experts Geelong to get the full picture.

Call us for an obligation-free consultation on 1300 795 575.

Bankruptcy and Centrelink Debts
8. What If I’m Overdue on My Car Repayments, Can I Still Go Bankrupt?
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What If I’m Overdue on My Car Repayments, Can I Still Go Bankrupt?

The majority of people are behind on all of their repayments when considering bankruptcy. Generally, you will be allowed 2 to 3 missed payments on your car loan before they repossess the vehicle.

However, even if your overdue vehicle repayments have gone to court and become a legal issue, you can still apply for bankruptcy and get yourself out of debt.

What if Im overdue on my car repayments can I still go bankrupt
9. When Are the Creditors Informed of My Bankruptcy?
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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 2 weeks, you will get a written notification, as long as there are no additional 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 Geelong with any questions you have on 1300 795 575.

When are the creditors informed of my bankruptcy
10. Will Anyone Come to My Home?
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Will Anyone Come to My Home?

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

The most contact you will ever get when you declare bankruptcy is a letter or an e-mail, and at Bankruptcy Experts Geelong we can help to make the process even simpler than that.

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

Will anyone come to my home?
11. Can I Have My Bankruptcy Annulled?
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Can I Have My Bankruptcy Annulled?

Yes. There are provisions within the Bankruptcy Act that make it possible for 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 everyone wins. Basically, the trustee contacts your creditors, presents them with your offer, which is considerably less than the original debt owed, the condition is that the creditors clear your credit file clean. This process generally 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 most likely to be successful if attempted later in your bankruptcy.

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

Can I have my bankruptcy annulled?
12. 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?
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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 Victoria, if you are already in a Debt Agreement, Personal Insolvency Agreement or Debt Consolidation arrangement, you can still declare 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 Geelong with any concerns you have on 1300 795 575.

Can I still go through the process of declaring bankruptcy
13. What Debts Won’t Declaring Bankruptcy Remove?
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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 home 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.

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

What debts won’t declaring bankruptcy remove
14. Is There a Limit to the Amount of Debt I Can Be in Prior to Declaring Bankruptcy?
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Is There a Limit to the Amount of Debt I Can Be in Prior to Declaring Bankruptcy?

In Victoria and throughout Australia, bankruptcy is not an option for a debt under $5,000.

Here at Bankruptcy Experts Geelong, we always discourage you from choosing bankruptcy for a small amount of debt. It is very important to consider your options very carefully and we can help you work out what is right for you.

Although there is a lower limit, there is no ceiling on the amount of debt you can owe when declaring bankruptcy.

You can owe millions of dollars, across a range of different circumstances, and still start the bankruptcy process to recover your life.

To discover more contact us on 1300 795 575.

Is there a limit to the amount of debt I can be in prior to declaring bankruptcy?
15. What is the Difference Between a Secured and Unsecured Loan?
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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 vehicles or homes, because they are the security for the loan. If you do not make repayments, the bank just sells the asset and recovers 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 unsure, give us a call at Bankruptcy Experts Geelong on 1300 795 575 and we will walk you through your case.

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

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

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

How can I make sure that you will be successful in making me
17. What If I’m Not Completely Sure Who I Owe Money To?
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What If I’m Not Completely Sure Who I Owe Money To?

Applying for a credit report to find out the total 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 may discover that a bill shows up on your front door quite unexpectedly. This is part of life, it is very easy to forget who you owe money to particularly if you have moved or have lost contact with the creditor.

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

What if I’m not completely sure who I owe money to
18. I’ve Had a Motor Vehicle Accident. Will the Debt Be Covered in Bankruptcy?
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I’ve Had a Motor Vehicle Accident. Will the Debt Be Covered in Bankruptcy?

If you were refused 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 show through the courts that you were not at fault.

There is, obviously, more to it than that, so please call Bankruptcy Experts Geelong on 1300 795 575 to discuss your unique set of circumstances.

Ive had a motor vehicle accident
19. Can I Also Have My Business Debts Removed with my Personal Bankruptcy?
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Can I Also Have My Business Debts Removed with my Personal Bankruptcy?

It is possible to have your business debts cleared together with your personal debts, and at Bankruptcy Experts Geelong we can help you to do this. Bankruptcy in Victoria is usually 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 choices which we can guide you through.

Be aware, there are a number of regulations and knock-on effects with this process, so please call 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 talk to us before you decide.

Can I have business debts removed be declaring bankruptcy also
20. Can I Pay Out My Bankruptcy Debt and Have It Annulled?
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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 settle those debts and have the bankruptcy annulled.

Can I pay out my bankruptcy debt and have it annulled
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