3 Comments Family & de facto law, financial agreements, consent orders
The consequences of declaring bankruptcy are significant. A bankruptcy trustee will be appointed to administer your estate, sell any assets and pay a dividend to creditors. One asset which the bankruptcy trustee will seek to sell will be the family home, that is on the basis that the bank don't repossess the home prior to the appointment of the trustee. In terms of future impact - a bankruptcy will remain on your personal credit file for at least 5 years. It is unlikely that you will be able to obtain top tier lending for this time. You will also be precluded from being a director of a company and holding some jobs (specifically those in the financial sector). The bankruptcy period is 3 years from the date that you submit your statement of affairs. The appointment will, however, clear the slate and rid you of your past debts. Let me know if you would like to discuss further.
I have no creditors, except if the bank chases me for money (2 mill) when/if I refuse to sign papers for my ex's loan. My car is worth approx $12 000 and I earn more than the amount allowed to be earnt after bankruptcy. Who gets my 'excess' money? As it is, the lawyers take what I used to be able to save, so nothing left over at the moment.
The standard threshold is about $60k and 50% of income that you earn above that figure will be payable to your bankruptcy trustee. The threshold is varied if you have dependants. Check out this link which is from the Australian Financial Security Authority: https://www.afsa.gov.au/insolvency/how-we-can-help/indexed-amounts-0#contributions.