PART 1 OF 3.
CURRENT LIMITS APPLY FROM 20TH SEPTEMBER 2010.
TOOLS: A bankrupt may keep tools used to earn an income. UP TO $3400.00
VEHICLES: A bankrupt may keep vehicles ( cars or motorbikes) used mainly for transport. UP TO $6850.00
BUYING GOODS AND SERVICES: A bankrupt must disclose when applying for Credit or Cheque goods and services. ABOVE THE LIMIT OF $4835.00.
A trustee may lodge an objection if a bankrupt obtains credit over this limit without disclosing their bankruptcy.
WARNING: It is a criminal offence for a bankrupt to obtain or attempt to obtain credit in certain circumstances.
Severe penalties apply to these offences.
-longer term placed on bankruptcy.
-charged a large fine.
-imprisonment.
It seems that every time you turn around, the bankruptcy laws are changing. The latest change in the laws governing bankruptcy has caused some confusion for people. The law that changed the way people file for bankruptcy happened back in 2005. The new bankruptcy law now has stricter rules for people wanting to file bankruptcy. People who would normally file a chapter 7 are now finding that they will have to file a chapter 13 bankruptcy.
ReplyDeleteThe changes will continue.
ReplyDeleteIf you filed for bankruptcy 10 years ago. You would have had a 7 year bankruptcy. Now it is 3 years in most cases.
Your professional adviser would give the most current information at the time of considering bankruptcy.
One can always argue the law should be strict.
In some countries its a prison sentence if fail to pay your debts.