What happens when you declare bankruptcy? (2) - PowerPoint PPT Presentation


Title: What happens when you declare bankruptcy? (2)


1
What happens once you become bankrupt?
2
  • You can become bankrupt within 10-14 days, and
    the first step is getting a bankruptcy trustee.
    Perhaps you will choose me.
  • As a result, almost all your debts (debts and
    liabilities or provable debts, in bankruptcy
    terms) become owed by your bankrupt estate, not
    by you. You are now debt free, or almost debt
    free.

3
  • There are exceptions anything you owe to
    Centrelink, Child Support and HECS. Court-imposed
    fines and debt as a result of fraud are also not
    covered.

4
  • If you want to keep an asset that is allowed
    under the law, such as a car and maybe your
    house, you must continue to pay for it.
  • This is called secured debt and I will cover
    them later. For now, were most concerned with
    the most common type of debt unsecured debt.

5
  • This is the dead-end sort of debt that burdens
    most people and what I come across most of the
    time credit card debt, tax debt, store card
    debt, phone debt, personal loan debt, and the
    like. Does that sound familiar?

6
  • When you go bankrupt this sort of debt is simply
    cancelled immediately as far as you are
    concerned.
  • You personally dont owe it any more full stop!
    Instead, your bankrupt estate owes it, and your
    trustee will manage it.

7
  • One thing is very important to note if you have
    been paying any of this type of debt by direct
    debit, go to the bank and cancel the arrangements.

8
  • This is extremely important as with both the
    alternatives to bankruptcy Debt Agreements and
    Personal Insolvency Agreements you are not
    released from your debts until the final
    repayment is made.
  • That could be five years, or longer.

9
  • Once the bankruptcy is in place, your bankruptcy
    number and date of bankruptcy are recorded on the
    governments database the National Personal
    Insolvency Index (NPII).
  • You are there forever. It is a public document
    and can be accessed if a fee is paid, but this
    rarely happens.

10
  • What it does mean is a black mark against your
    name with the commercial credit rating agencies.
  • Its there for five years. Thats the credit
    rating to worry about. You may already be listed
    as having bad credit risk.

11
  • Once you are bankrupt, your trustee will contact
    your bank and all your creditors to let them
    know, and ask them to contact him/her regarding
    the chances of your debt being repaid.
  • Your bankruptcy is not advertised in a newspaper.

12
  • Once you have gone bankrupt, your creditors are
    not allowed to contact you about your debt and
    they cannot reappear in three years time.
  • Your trustee will secure any assets that will be
    part of your bankrupt estate and begin managing
    it while you put the stress of unpaid debt behind
    you, and get on with life.

13
  • There are other options apart from bankruptcy and
    you can read about them on this website, but in
    most cases I believe bankruptcy offers the most
    effective solution.
  • It provides immediate release from the debt and
    recognises you as a human being.

14
  • It also allows you the chance to earn a minimum
    level of cash-in-hand income (always more than
    1000 a week) and to keep certain property so you
    can live properly.

15
  • Once you have the protection of bankruptcy, you
    will find your focus will change from constant
    worry about the debt, to regrouping, living your
    life and recovering from the financial distress.
  • Life will be happy and productive again, and you
    will regain your self-esteem.

16
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Title:

What happens when you declare bankruptcy? (2)

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Here we will discuss, what happens when you declare bankruptcy. Upon obtaining the protection of bankruptcy you will not notice anything different. You will get up and go to work the same as you have always done. Life goes on. – PowerPoint PPT presentation

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Title: What happens when you declare bankruptcy? (2)


1
What happens once you become bankrupt?
2
  • You can become bankrupt within 10-14 days, and
    the first step is getting a bankruptcy trustee.
    Perhaps you will choose me.
  • As a result, almost all your debts (debts and
    liabilities or provable debts, in bankruptcy
    terms) become owed by your bankrupt estate, not
    by you. You are now debt free, or almost debt
    free.

3
  • There are exceptions anything you owe to
    Centrelink, Child Support and HECS. Court-imposed
    fines and debt as a result of fraud are also not
    covered.

4
  • If you want to keep an asset that is allowed
    under the law, such as a car and maybe your
    house, you must continue to pay for it.
  • This is called secured debt and I will cover
    them later. For now, were most concerned with
    the most common type of debt unsecured debt.

5
  • This is the dead-end sort of debt that burdens
    most people and what I come across most of the
    time credit card debt, tax debt, store card
    debt, phone debt, personal loan debt, and the
    like. Does that sound familiar?

6
  • When you go bankrupt this sort of debt is simply
    cancelled immediately as far as you are
    concerned.
  • You personally dont owe it any more full stop!
    Instead, your bankrupt estate owes it, and your
    trustee will manage it.

7
  • One thing is very important to note if you have
    been paying any of this type of debt by direct
    debit, go to the bank and cancel the arrangements.

8
  • This is extremely important as with both the
    alternatives to bankruptcy Debt Agreements and
    Personal Insolvency Agreements you are not
    released from your debts until the final
    repayment is made.
  • That could be five years, or longer.

9
  • Once the bankruptcy is in place, your bankruptcy
    number and date of bankruptcy are recorded on the
    governments database the National Personal
    Insolvency Index (NPII).
  • You are there forever. It is a public document
    and can be accessed if a fee is paid, but this
    rarely happens.

10
  • What it does mean is a black mark against your
    name with the commercial credit rating agencies.
  • Its there for five years. Thats the credit
    rating to worry about. You may already be listed
    as having bad credit risk.

11
  • Once you are bankrupt, your trustee will contact
    your bank and all your creditors to let them
    know, and ask them to contact him/her regarding
    the chances of your debt being repaid.
  • Your bankruptcy is not advertised in a newspaper.

12
  • Once you have gone bankrupt, your creditors are
    not allowed to contact you about your debt and
    they cannot reappear in three years time.
  • Your trustee will secure any assets that will be
    part of your bankrupt estate and begin managing
    it while you put the stress of unpaid debt behind
    you, and get on with life.

13
  • There are other options apart from bankruptcy and
    you can read about them on this website, but in
    most cases I believe bankruptcy offers the most
    effective solution.
  • It provides immediate release from the debt and
    recognises you as a human being.

14
  • It also allows you the chance to earn a minimum
    level of cash-in-hand income (always more than
    1000 a week) and to keep certain property so you
    can live properly.

15
  • Once you have the protection of bankruptcy, you
    will find your focus will change from constant
    worry about the debt, to regrouping, living your
    life and recovering from the financial distress.
  • Life will be happy and productive again, and you
    will regain your self-esteem.

16
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