Unemployed and Pensioner Bankruptcy Service Specialists.
Can I go Bankrupt if I am unemployed or on a Pension? Will I lose my Unemployment Benefits or my Pension if I choose to go bankrupt? Will my payment levels stay the same or will I lose some? Will I be able to keep my health care card? What effect will bankruptcy have upon my other government benefits? How will Bankruptcy effect my superannuation? Will I be able to keep my car? Can I travel Overseas? How will bankruptcy effect my government housing?
SO MANY QUESTIONS!!!!
Over the last 10 years we have provided Specialised Bankruptcy Services for thousands of Aussies who are Unemployed or on Pensions.
We will help you through the maze and calm your mind when it comes to Bankruptcy. If you are on Unemployment Benefits or on a Government Pension you will have some unique questions. You will find the answers to many of these questions below.
If you are unemployed or on a government pension and are carrying large debts, it would make sense that you are not wondering how to pay it all off, instead you are just wondering how on earth you are going to make your next monthly repayment!, The stress caused by large debts and low income is terrible. You rob Peter to pay Paul, you borrow from Family and Friends, you go without, just to make those monthly repayments. You pay it and then the bill for the next month turns up and IT IS EXACTLY THE SAME! All you have done is pay the interest!!!
UNEMPLOYED
If you are unemployed and you find yourself overwhelmed with debt, it’s time to get off the merry go round and get a fresh start.
In most cases individuals who find themselves unemployed end up going backwards when it comes to debt. They borrow to pay their debts. This is crazy! It’s time to consider your options.
You know what they say,
“When you find yourself in a hole that you can’t get out of, the first thing to do is STOP DIGGING!“
Instead, let us throw you a rope to climb out.
Our experience shows that unemployed individuals who are financially burdened, struggle to focus on the things that will help them move forward. Your mind can become so consumed with the fear of debt that it affects your ability to even get a new job. Sleepless nights and constant worry do not lend themselves to a clear mind. If this is you, then it is time for change. You need to get your life back so you can focus on the things you need to do, instead of chasing your debt tail.
More than 50% of the people we assist through bankruptcy every year are unemployed.
Their common story is:
- Even when they were working, most found it was a struggle to keep up with their debts but they managed.
- Once they lost their job there was no hope of them keeping up.
- Their debts spiralled out of control.
- They tried as hard as they could but they simply did not have enough money to meet the demands of debt collectors.
- They borrowed from everywhere they could, sometimes placing great strain on relationships with family and friends as they looked for ways to find money to pay the debt collectors.
- The debt collectors were relentless.
- They stopped taking telephone calls in case it was a debt collector, they threw out collection notices without even opening the letter and many were in fear of even answering the door.
- Many just stuck their head in the sand knowing it was hopeless and decided to just wait to see what happened because there was no other option for them.
- Many felt they had lost all hope of ever recovering.
- Many were scared that they would somehow end up in prison. This left them fearing for their children, their parents and their loved ones.
- Some were even told that if they paid a smaller amount the rest of the debt would be wiped, but they just laughed as they did not have ANY extra money to even consider the lower offer.
Sound Familiar? If it does then you need to take control!
Here are the top 7 questions asked by People who are Unemployed and considering bankruptcy:
The short answer to this is no. You are still able to apply for and receive unemployment benefits through Centrelink as a bankrupt. If you are already receiving these benefits they will continue as they currently are and if you are yet to apply for Unemployment benefits, you simply apply a usual. You are also able to continue to receive other benefits such as family Allowance, rent assistance, a health care card and most other government benefits if you qualify.
Your Centrelink debt will be taken care of as part of your Bankruptcy. However, if it is has been found that your Centrelink debt was fraudulent and the courts have found you guilty and charged you with fraud or dishonesty, then this Centrelink debt will not be covered as part of bankruptcy and you will be required to pay it back. For more clarification on this please contact us.
You can keep a vehicle up to the value of $8000. (Be sure to ask us to find the “Actual” value of your vehicle. The value is often very different to what you think.)
If your vehicle is worth more than $8000.00 and there is no finance on it, you may still be able to keep it by using one of these options
Option 1: you may be able to speak with your Bankruptcy Trustee (the person who looks after you during your bankruptcy) and ask them if you can pay off the difference over the term of your bankruptcy. Here’s an example. Let’s say that your vehicle is worth $15000 and you would like to keep it. You could speak with the trustee and let them know that you realise you can only keep a car up to the value of $8000 but that you would like to keep the car and pay off the difference over the next year or two. Often you will find the Trustee very helpful and accommodating and will be more than happy to work with you on this.(We are happy to negotiate this for you)
Option 2: You could simply hand the vehicle to your trustee. He can then arrange for it to be sold and once it is sold your trustee will give you back $8000 from the sale of the vehicle and pay the rest of the money to your creditors. (People you owed money to.) You can then use this $8000 to go and buy another vehicle.
What if my vehicle is financed
If your vehicle is under secured finance the situation is quite different. Here are the usual scenarios that exist regarding financed vehicles and Bankruptcy.
Scenario 1: Often you will find that you owe more on the vehicle than what it is worth. If this is the case and your finance company agree to let you keep the loan, then you can keep the vehicle so long as you continue to pay the loan. (That’s right, you can choose to keep a loan even if you go bankrupt!)
Scenario 2: If your vehicle is worth up to $8000 more than you have left on your loan and your finance company agree to let you keep the loan, then you can keep it. For example, if you have a vehicle worth $20,000 and your loan is only $12,000 you can keep the vehicle as you only own $8000 worth of the equity in the vehicle. If you are unsure, ask us.
Scenario 3: If the vehicle is worth $8000 or more than the loan, then you will again need to work something out with your Trustee to pay off the difference. (We can negotiate this for you if you want us to.)
Bankruptcy doesn’t stop you from working and normally your employer does not need to know, nor will they be told that you are bankrupt. However there are some restrictions to be aware of:
- Some professional or licencing bodies impose restrictions in some trades or professions. Contact them directly to ask if restrictions apply.
- There may be limitations to operating as a sole trader.
- You can’t manage a trust account e.g. as a solicitor or accountant.
- You can’t be a director of a company or manage a company unless you have the permission of the court.
- You may not be able to hold certain public positions (e.g. senator or member of parliament).
Be sure to contact us if you need more information on the job you are applying for.
Yes. However there may be circumstances where Landlords ask you to let them know if you are, or if you have become bankrupt. Each situation is different so please read through your rental agreement and find out what the requirements are.
While you are Bankrupt you are able to run a business as a sole trader (there are some requirements and restrictions to this, so call us to find out the details). However you are not able to be the Director of a Company while you are bankrupt, unless you are given approval by the courts. So in short, yes you can run a business as a bankrupt. It is not the Governments intention to “kill off your ambitions and put you into hibernation” for 3 years, they simply need to be sure that you meet your obligations as a bankrupt.
Bankruptcy is a relatively simple process, however there are some requirements placed upon you for the thee years that you are bankrupt. These include:
- Completing an annual report. You are required to provide a completed annual report to your trustee. This report outlined how much income you have earned over the year and will determine if there are any contributions to be made to the trustee.
- Payment of contributions. If you earn over what is called the “Threshold Limit” for your income, you will be required to pay some of this money to your trustee. The current income threshold is $59031.00 (AFTER TAX). This threshold increases if you have dependents so be sure to contact us for more details.
- Overseas Travel. Many people who are enquiring about bankruptcy are under the false impression that they are unable to travel overseas if they go bankrupt. This is not the case. You can apply to travel overseas and once you have the permission of your Trustee, you can go. It is a simple and easy process.
- Other costs. In most cases there are no other costs associated with your bankruptcy unless you earn above the threshold limit and need to pay some money to your trustee. If, for some reason, there are other costs your trustee will make them known to you but this is seldom the case.
More Questions? Go to our FAQs page:
ON A PENSION
If you are on an aged, invalid, single parent or any other type of pension and you find yourself with unmanageable debt, it’s time to look at your options.
Aged Pension
We are often contacted by Aged Pensioners who have carried their debt into their retirement and simply no longer have the income to be able to service it. It is common for us to speak with clients who have religiously paid their debts first, for years and now often struggled just to put food on their table. Take control and get rid of this debt. Your retirement years should be free and stressless. There’s usually enough going on just with your health as you move into retirement, to add financial stress to health issues exacerbates both until you find your health and finances are both spiralling out of control. IT’S NOT WORTH IT!
Complete the FREE Bankruptcy Evaluation below and we will contact you and organise for you to free yourselves of these debts and start to live again, enjoying life….
THE MOST COMMON 5 QUESTIONS ASKED BY PENSIONERS
Invalid Pension
If you are on an invalid pension, chances are you are well aware of the relationship between stress and physical health. Financial Stress is literally a killer. It sucks your body and your mind of energy, hope, happiness, health and life. It can be devastating.
Bankruptcy could literally save your life. If you find yourself in a situation where you are stressed from the pressure of financial burden, you need to do something about it sooner rather than later and take control back. Don’t let it overwhelm you. The telephone calls, the letters, the demands, the court notices, the knocks on the door, they all take their toll on you and your already bad health will take yet another hit.
Take the first step. Complete the no Obligation FREE Bankruptcy Evaluation and we will let you know if Bankruptcy is the right option for you.
THE MOST COMMON 5 QUESTIONS ASKED BY PENSIONERS
Single Parent Pension
As a single parent we salute you. It is a tough Job raising a family on your own. It is tough and we are well aware of the pressures that single parents have to deal with day in day out. We are contacted EVERY day by single parents who are drowning under a mountain of debt and feel there is no way out. There is! But you need to take control and make some changes and decisions. Now that you have more than one mouth to feed your decisions need to be the best decisions for everyone you care for. We so often hear single parents say that they don’t feel their children are getting the best of them because they are always so stressed from the burdens of debt. so it is time to consider what to do.
Take the first step. Complete the no Obligation FREE Bankruptcy Evaluation and we will let you know if Bankruptcy is the right option for you.
THE MOST COMMON 5 QUESTIONS ASKED BY PENSIONERS
Here are the top 6 questions Pensioners ask when considering bankruptcy:
The short answer to this is no. You are still able to apply for or continue to receive your pension through Centrelink as a bankrupt. If you are already receiving these benefits they will continue as they currently are and if you are yet to apply for a pension, you simply apply a usual. You are also able to continue to receive other benefits such as family Allowance, rent assistance, a health care card and most other government benefits if you qualify.
Your Centrelink debt will be taken care of as part of your Bankruptcy. However, if it is has been found that your Centrelink debt was fraudulent and the courts have found you guilty and charged you with fraud or dishonesty, then this Centrelink debt will not be covered as part of bankruptcy and you will be required to pay it back. For more clarification on this please contact us.
You can keep a vehicle up to the value of $8000. (Be sure to ask us to find the “Actual” value of your vehicle. The value is often very different to what you think.)
If your vehicle is worth more than $8000.00 and there is no finance on it, you may still be able to keep it by using one of these options
Option 1: you may be able to speak with your Bankruptcy Trustee (the person who looks after you during your bankruptcy) and ask them if you can pay off the difference over the term of your bankruptcy. Here’s an example. Let’s say that your vehicle is worth $15000 and you would like to keep it. You could speak with the trustee and let them know that you realise you can only keep a car up to the value of $8000 but that you would like to keep the car and pay off the difference over the next year or two. Often you will find the Trustee very helpful and accommodating and will be more than happy to work with you on this.(We are happy to negotiate this for you)
Option 2: You could simply hand the vehicle to your trustee. He can then arrange for it to be sold and once it is sold your trustee will give you back $8000 from the sale of the vehicle and pay the rest of the money to your creditors. (People you owed money to.) You can then use this $8000 to go and buy another vehicle.
What if my vehicle is financed
If your vehicle is under secured finance the situation is quite different. Here are the usual scenarios that exist regarding financed vehicles and Bankruptcy.
Scenario 1: Often you will find that you owe more on the vehicle than what it is worth. If this is the case and your finance company agree to let you keep the loan, then you can keep the vehicle so long as you continue to pay the loan. (That’s right, you can choose to keep a loan even if you go bankrupt!)
Scenario 2: If your vehicle is worth up to $8000 more than you have left on your loan and your finance company agree to let you keep the loan, then you can keep it. For example, if you have a vehicle worth $20,000 and your loan is only $12,000 you can keep the vehicle as you only own $8000 worth of the equity in the vehicle. If you are unsure, ask us.
Scenario 3: If the vehicle is worth $8000 or more than the loan, then you will again need to work something out with your Trustee to pay off the difference. (We can negotiate this for you if you want us to.)
Yes. However there may be circumstances where Landlords ask you to let them know if you are, or if you have become bankrupt. Each situation is different so please read through your rental agreement and find out what the requirements are.
Bankruptcy is a relatively simple process, however there are some requirements placed upon you for the three years that you are bankrupt. These include:
- Completing an annual report. You are required to provide a completed annual report to your trustee. This report outlined how much income you have earned over the year and will determine if there are any contributions to be made to the trustee.
- Payment of contributions. If you earn over what is called the “Threshold Limit” for your income, you will be required to pay some of this money to your trustee. The current income threshold is $59031.00 (AFTER TAX). This threshold increases if you have dependents so be sure to contact us for more details.
- Overseas Travel. Many people who are enquiring about bankruptcy are under the false impression that they are unable to travel overseas if they go bankrupt. This is not the case. You can apply to travel overseas and once you have the permission of your Trustee, you can go. It is a simple and easy process.
- Other costs. In most cases there are no other costs associated with your bankruptcy unless you earn above the threshold limit and need to pay some money to your trustee. If, for some reason, there are other costs your trustee will make them known to you but this is seldom the case.
While you are Bankrupt you are able to run a business as a sole trader (there are some requirements and restrictions to this, so call us to find out the details). However you are not able to be the Director of a Company while you are bankrupt, unless you are given approval by the courts. So in short, yes you can run a business as a bankrupt. It is not the Governments intention to “kill off your ambitions and put you into hibernation” for 3 years, they simply need to be sure that you meet your obligations as a bankrupt.
Bankruptcy is a relatively simple process, however there are some requirements placed upon you for the thee years that you are bankrupt. These include:
- Completing an annual report. You are required to provide a completed annual report to your trustee. This report outlined how much income you have earned over the year and will determine if there are any contributions to be made to the trustee.
- Payment of contributions. If you earn over what is called the “Threshold Limit” for your income, you will be required to pay some of this money to your trustee. The current income threshold is $59031.00 (AFTER TAX). This threshold increases if you have dependents so be sure to contact us for more details.
- Overseas Travel. Many people who are enquiring about bankruptcy are under the false impression that they are unable to travel overseas if they go bankrupt. This is not the case. You can apply to travel overseas and once you have the permission of your Trustee, you can go. It is a simple and easy process.
- Other costs. In most cases there are no other costs associated with your bankruptcy unless you earn above the threshold limit and need to pay some money to your trustee. If, for some reason, there are other costs your trustee will make them known to you but this is seldom the case.
Bankruptcy is a key to a fresh start. It gives you the opportunity to start over again and free yourself from crippling debt and the stress associated with it. The choice to go Bankrupt is a very personal one and should be discussed with someone who knows the process to ensure it is right for your circumstances, so complete the FREE Bankruptcy Evaluation and we will let you know whether Bankruptcy is the right decision for you.
The fact is Bankruptcy can be life changing and in most cases is a wonderfully liberating experience. You can take back control of your life! Take back control of your health! Take back control of your emotions! Start sleeping well again….. Stop the harassing phone calls, the nasty letters and the feeling of hiding from everyone. If you have read over this information and are thinking “Hey that sounds like me” it means you are suffering from the feelings that come with the stress of overwhelming debt.