What If You Live Overseas
If you are living overseas you can still become bankrupt. Creditors that are not based in NZ will be sent a report if they are listed in your bankruptcy, but they can continue to chase you for any money you owe them.
Your assets in New Zealand become the property of the Official Assignee. If you have assets outside of NZ, the Official Assignee may have your NZ bankruptcy recognised in the overseas country and may deal with those assets also.
You can return to NZ during your bankruptcy, but if you want to leave again you will need to apply for permission.
The public register can be searched from overseas. Several credit reporting companies operate in more than one country so your credit rating outside of NZ may be affected.
How A Debt Agreement Works
With a debt agreement, your creditors agree to accept an amount of money that you can afford. You pay this over a period of time to settle your debts.
Once you’ve paid the agreed amount, you’ve paid those debts.
A debt agreement is not the same as a debt consolidation loan or informal payment arrangements with your creditors.
How To Cancel Attachment Orders Or Direct Debits
Once you have entered bankruptcy you need to cancel any direct debits, unless the type of debt isnt included in your bankruptcy, e.g. court fines, Child Support. The Official Assignee cannot cancel the direct debit for you. You will need to contact your bank.
If you have an attachment order over your wages for a debt that is included in your bankruptcy, your creditor should tell your employer to stop making the deductions once they receive the report from the Official Assignee. If this does not happen you need to take a copy of your bankruptcy acceptance letter to the District Court that made the order and ask them to cancel the order.
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How Can Bankruptcy Happen
You can be made bankrupt in two ways:
If you’re thinking of applying for bankruptcy, you should first speak to a free, independent debt adviser or a reputable solicitor, accountant, insolvency practitioner or financial adviser.
Are There Offences Under The Bankruptcy Act
Yes. The most important are listed below:
- disposing of the property before bankruptcy with intent to defeat your creditors
- failure to disclose assets
- the deliberate obtaining of credit when you know you cannot pay
- gambling and speculation which materially contributes in bankruptcy
- incurring debts during bankruptcy exceeding a prescribed amount without disclosing that you are bankrupt
- operating a business under an assumed name, without advising your bankruptcy
- leaving Australia without the trustee’s permission
The penalties for these offences vary from 6 months to 3 years imprisonment upon conviction.
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What Our Clients Are Saying About Us
I would like to express my gratitude and say thank you very much. The Bankruptcy went through smoothly with no problems.
I was really stuck and it was a very stressful thing to have so much debt hanging over my head for a long time. With my low income I had no way to deal with it but you helped well actually you saved my life.
Your service was quick, concise and easy to follow and I would have no problem recommending you to anyone else who needed help. Thank you once again.
I would recommend Hugh and his team at Declare Bankruptcy Australia to anyone.
Always efficient and accommodating, they provided me with different options to suit my needs whilst ensuring that I was well aware of the implications of my decisions.
Going through the process of bankruptcy can be a daunting thought, but Hugh made it seamless and stress-free.
Words cant express how thankful I am.
Id like to take the opportunity to thank you for all of your efforts and work in sorting out our complicated debt problem.
Your persistence and dedication to helping us with a difficult, and sometimes extremely frustrating situation was fantastic.
There arent enough superlatives to express how thankful We feel when it comes to the outcome you have worked out for us.
Again, thank you so much. I hope you continue doing the very important service that you are doing. You are helping people in ways that some cant even fathom.
How To File Bankruptcy In California
If you need to file for bankruptcy in California, then there are several options you must decide on first. You must first determine if you want an attorney to represent you or you will be representing yourself in your bankruptcy case. Below are the steps that you need to take regardless of whether you represent yourself or you are represented by an attorney. Although it is not advisable to represent yourself in a bankruptcy case if you decide you want to file for bankruptcy in California on your own then these are some steps that you should take:
1. Gather Necessary Documents -The documents you will need to gather to complete your paperwork include
- 6 months of Paystubs or Other Income Verification If you are unemployed or have other income then you should have that this information to complete your documents
- Asset Information- Gather documents that provides information on any assets you have including bank accounts, whole life insurance policies, IRA, 401K, Retirement, Vehicle Value
- Last 2 years of Filed Tax Returns 4 years are generally required for Chapter 13 bankruptcy cases.
If you are represented by a bankruptcy attorney, they will also request that you gather these documents and provide them to their office. These documents are needed to complete your bankruptcy schedule and petition.
If you are represented by an attorney, then the attorney will generally complete this process. They should ensure that the assigned trustee receives your tax returns.
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Where Bankruptcy Doesnt Help
Bankruptcy does not necessarily erase all financial responsibilities.
It does not discharge the following types of debts and obligations:
- Loans obtained fraudulently
- Debts from personal injury while driving intoxicated
It also does not protect those who co-signed your debts. Your co-signer agreed to pay your loan if you didnt, or couldnt pay. When you declare bankruptcy, your co-signer still may be legally obligated to pay all or part of your loan.
After Your Bankruptcy Application Is Accepted
Once your application is accepted, it is important to note that:
- your details will appear on our website.
- all your creditors will be sent a report. They can log onto our website to get updates after the first report is sent.
- you should contact your secured creditors and arrange to either:
- keep making payments under the agreement or
- arrange for the secured item to be returned/repossessed. You can then stop making any payments under the agreement. They can claim against you for any unpaid amount.
Also Check: How To Become A Bankruptcy Petition Preparer
In Addition To The Above Rights And Responsibilities Its Important To Be Aware That Bankruptcy Also Comes With A Few Offences You Should Avoid
Offences while bankrupt include:
- Disposing of any property before filing for Bankruptcy with the intention of harming your creditors.
- Failing to disclose any assets.
- Deliberately obtaining credit you know you cannot pay.
- Gambling and speculation which contributes to your Bankruptcy.
- Applying for credit above the indexed amount without disclosing that you are currently bankrupt.
- Operating a business under an assumed name without disclosing your Bankruptcy status to your partners and vendors.
- Leaving Australia without written permission from your trustee.
If you are convicted of any of these offences, the penalties vary from 6 months to 3 years in prison. Other than the required disclosures mentioned above, your Bankruptcy is generally not advertised. However, your name will be entered in the National Personal Insolvency Index , which can be accessed by anyone for a fee, and remain there forever. Your Bankruptcy will be placed on your credit report for 5 years from the date it begins, regardless of whether or not youve been discharged.
As a result, lenders may limit your ability to borrow or otherwise use credit. It may also be hard to rent property or get utilities connected without paying a bond, and some banks may not let you open or maintain an account.
To learn more about whether filing for Bankruptcy is right for you, see our FAQ below or
Will I Lose My Job If I File For Bankruptcy
When bankrupt there is a difference between currently being employed and applying for a new position. Rarely will you ever lose your job because you have led for bankruptcy. For example, it is difcult to get into the Defence Forces as a current bankrupt, but they do not terminate your employment if you become bankrupt when you are already employed by them.
Each professional body has its own rules, and this varies from state to state. Our advice is to speak directly to your industry-specic experts, who will know exactly how your unique situation works in your State. This is worth doing before moving forward with your bankruptcy, as it may be a critical factor in your decision. Check out the chart below for a list of some professions where seeking further, industry-related advice is a must. Some industries will not have a problem with your bankruptcy so long as it is all above board. Please feel free to call us at Bankruptcy Experts on with any questions you have.
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If You Have Unliquidated Debts Get Legal Advice Before Declaring Bankruptcy
Some debts are not included in bankruptcy until they have been liquidated liability admitted and the amount agreed upon .
The most common example is a debt arising from a motor vehicle accident such as damages to another persons vehicle.
If you are considering bankruptcy and some of your debts are from an accident, or otherwise dont arise from a contract , then you should get legal advice before going bankrupt.
Will Any Of My Assets Be Sold
Some assets are protected under bankruptcy and those, which you can generally keep, are listed above. However, there are other assets which your trustees can recover. Examples of these assets include:
- Houses apartments land business and any other real property
- Motor vehicles which are not exempt
- Any tax refund for income earned before you became a bankrupt
- Proceeds from a deceased estate where the person died before or during your bankruptcy
- And lottery winnings
Any asset you own with another person may also be sold by your trustee.
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What Is The Purpose Of The Bankruptcy Forms
If youâre struggling with debt, just looking at all the forms can be overwhelming. So, before you take the plunge, put it all in context and ask yourself, âWhatâs the point of the Chapter 7 bankruptcy forms?â
The point is to provide everyone certain information about your financial situation. What you owe, what you own, how much you make and how much you spend. Easily said, not so easily accomplished. There wouldnât be 23 different forms otherwise.
That being said, while completing the Chapter 7 bankruptcy forms can take some time and effort, in the end they are your opportunity to tell your story to the bankruptcy court. So, letâs take a look at the Chapter 7 bankruptcy forms and what part of your story each one of them tells.
Collect The Endorsed Documents
The Service Bureau will notify you via email or SMS of whether your application documents have been accepted by the courts.
If the court accepts your application documents, you will be asked to return to the Service Bureau to collect an endorsed and sealed copy of the documents. This will include the date and time of a hearing that you must attend.
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Get Out Of Debt Today: An Alternative To Declaring Bankruptcy & Insolvency
Finding your way out of debt can often be an overwhelming task you are most likely stressed , scared, and probably out of your depth with the wealth of legal jargon.
Get Out of Debt Today can help you. They have wiped off up to 90% off some clients debt without entering into any form of debt agreement or filing for bankruptcy. Fill out the online form at to find out more and receive a tailored plan of attack for your unique circumstances. Get Out of Debt Today.
Bankruptcy May Be The Answerif You Cant Pay You Cant Pay
Demand Letters or Sheriff Action.
Garnishee or Court Action. Clear your Tax Debt!
We will cut through the myths and false information circulating about going bankrupt and give you the facts.
If youre on this site, then its probably because your debt is now beyond control. Chances are that by now your creditors are making life a misery. Youre probably living well below the standard of living you once enjoyed. Youre probably stressed out. Your health and well-being are likely suffering. Your family and working relationships are most likely strained. Your mind is not in the right place.
Bankruptcy may be your solution!
At Declare Bankruptcy Australia we specialise in providing professional and personalised bankruptcy advice. We understand the pain of what you are going through and we promise to:
- Listen and not judge you
- Give you all your options and explain their impacts
- Provide careful explanations so that you really understand
- Give you the whole truth
Concerned friends or relatives may have good intentions and try to advise you against bankruptcy, but they dont walk in your shoes, they dont feel what you are going through!
Our aim is to provide you with assistance in Declaring Bankruptcy.
We can show you what to do to keep you car. We can show you how there is a possibility of not losing your home. There is no reason why you cannot live a comfortable, although not extravagant lifestyle, one free from debt, stress and worry.
How To File For Bankruptcy In The Usa For Free
How to File Bankruptcy in 2021 for Free: A 10-Step Guide. 1 Collect Your Documents. Your first step is to collect all your financial documents so you understand the current state of your finances. 2 Take Credit Counseling. 3 Complete the Bankruptcy Forms. 4 Get Your Filing Fee. 5 Print Your Bankruptcy Forms.
How Does Bankruptcy Work
When you’re declared bankrupt, the value of your possessions is usually shared out among those you owe money to. This can include your house, car, leisure equipment and jewellery â everything except the essentials. Depending on your income, you’ll also be asked to make payments towards your debt for up to three years.
Sounds gloomy, but there’s a silver lining. Once you’re declared bankrupt, you won’t have the pressure of dealing with creditors anymore. Lenders will also have to stop most types of court action against you. And, most relieving of all, you will usually be ‘discharged’ â in other words, freed from your debts â after one year.
Also Check: Will Filing For Bankruptcy Stop A Judgement
Can I Do The Pre
Yes, the course is offered online, over the phone or in person at the offices of an approved credit counseling agency.
The same scenario applies review different aspects of finance answer questions review program with a counselor and receive a certificate of completion.
Taking the course over the phone normally runs from 90-120 minutes.
Am I Eligible For Bankruptcy
You can apply for bankruptcy if you meet these 2 requirements:
- you’re unable to pay your debts when they are due and
- you’re present in Australia or have a residential or business connection to Australia.
There is no minimum or maximum amount of debt or income you need to be eligible.
There is no fee to apply for bankruptcy.
If you’re currently in a debt agreement and want to apply for bankruptcy, contact your administrator. You must terminate your debt agreement first before applying.
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What Happens When You Go Bankrupt
If the adjudicator makes you bankrupt:
- youll receive a copy of the bankruptcy order and may be interviewed about your situation
- your assets can be used to pay your debts
- youll have to follow the bankruptcy restrictions
- your name and details will be published in the Individual Insolvency Register
You can apply to have your address removed from the Individual Insolvency Register if publishing it will put you at risk of violence. This will not affect your bankruptcy.
After 12 months youre usually released from your bankruptcy restrictions and debts. Assets that were part of your estate during the bankruptcy period can still be used to pay your debts.
You might be able to cancel your bankruptcy before youre discharged.
Bankruptcy only applies to individuals. Find out what your options are if your limited company cannot pay its creditors.
If You Do Not Live In England Or Wales
You might be able to apply if you live anywhere else – talk to a debt adviser.
You must not break the bankruptcy restrictions in England or Wales. These might also apply outside England and Wales – check the laws of the country you live in.
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