Hi, I just wanted to find out what happens when you go bankrupt from people who have actually gone bankrupt? I'm really worried about them coming out and taking all of our stuff, there's nothing we can do about it because we have a large tax debt(a previous partner screwed us and never paid tax from a sole trader business) and no way to pay it. How long does the actual bankruptcy last? Like how long can they garnish wages and take tax returns etc? And can they take our household items? Thanks for ur help.
5 Replies
https://www.afsa.gov.au/debtors/bankruptcy
Bankruptcy only takes items that aren't considered a necessity.
You're allowed a car up to a certain value (around $7000). Anything over the value will be sold.
You're allowed to keep engagement/wedding rings, but other expensive jewelry might be sold.
Household items aren't touched (unless you have a ridiculously expensive TV or something)
They garnish wages if you earn over a certain amount. I think it was around 58k (but don't quote me, I have a hopeless memory) and they only take a percentage of it.
You aren't allowed to travel overseas unless you have a valid reason (wedding, funeral) and you'll need to seek permission by the person in charge of your bankruptcy.
You're bankrupt for 3 years, after which you become 'ex bankrupt' for another 4 years. But you'll always remain on their official database.
They can also take things such as life insurance pay outs that are in your name, so you should really consider speaking to a financial advisor or someone who can help you determine if bankruptcy really is your only option.
So after the 3 years is that when they stop garnishing your wages etc? It is our only option we have no hope of paying it back and the ato are already filing bankruptcy against us.
Im bankrupt ive never had my tax returns taken nor money out of my pay. My partner isnt bankrupt his pay doesn't count. I earn under the threshold (around $60k for two dependants and as i said husbands income doesnt count)
My car never got taken its only worth 3000 you can only have one up to 7000
I had to list anything of value well i dont have anything.
Your essential living items dont count beds furniture etc its only if your wearing thousands of dollars worth of jewlery and have antique collections worth heaps because reality is you could sell those to make payments on your debts.
Has it affected my life much...really no just cant work in a bank or insurance or financial institutions. I cant get a post paid phone contract (my husband does for me) and i cant get a car loan. My 3 years is up next year and i will rebuild my credit my loans will be higher interest and ill need someone to vouch for me incase i skip on payments.
I dont tell people but no one has asked and it was due to a dv relationship with an ex and a manipulative mother who skipped out on a house we owned leaving me with almost 200,000 debt
We owe 120k tax bill .....Unfortually there is no way at all of getting out of paying it....We had to work very closely with the tax office to come to a agreement they accepted a offer of 60k for now. or they were going to take us to federal court And who knows what would of happened , and also charge 10% interest on top. They can make you insolvent Tax office can be ruthless if need to be sorry if this sounds harsh. I Also had a friend who did not pay his tax at all and Unfortually they sent him to prison and still had to pay it. Debts you still have to pay both during and after bankruptcy is your tax returns. A good website to look up is AUSTRAILIAN FINACIAL SECURITY AUTHORITY.
We owe 120k tax bill .....Unfortually there is no way at all of getting out of paying it....We had to work very closely with the tax office to come to a agreement they accepted a offer of 60k for now. or they were going to take us to federal court And who knows what would of happened , and also charge 10% interest on top. They can make you insolvent Tax office can be ruthless if need to be sorry if this sounds harsh. I Also had a friend who did not pay his tax at all and Unfortually they sent him to prison and still had to pay it. Debts you still have to pay both during and after bankruptcy is your tax returns. A good website to look up is AUSTRAILIAN FINACIAL SECURITY AUTHORITY.