Coping with bankruptcy: Busting the big myths

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Money worries: Nearly one in three Australians are feeling financially stressed, so if you are drowning in debt, the first step is to work out if bankruptcy is right for you.

Money worries: Nearly one in three Australians are feeling financially stressed, so if you are drowning in debt, the first step is to work out if bankruptcy is right for you.

If you are facing severe money-troubles, in no way are you alone.

In fact, according to The Australian Financial Security Authority, there were 2,403 debtors who entered a new personal insolvency in NSW in the June quarter 2018. 

Debt is about so much more than money. 

Financial distress can lead to a number of emotional and psychological issues; including depression and  even suicide.

One of the reasons people stall seeking financial help is the fear of the unknown, but according to Charles Bosse from the Bankruptcy Experts declaring bankruptcy is not as scary as it once was.  

Charles Bosse.

Charles Bosse.

Here Mr Bosse helps debunk some of the myths:

Is going bankrupt my only choice?

No. There are a couple of possibilities offered to you. The sooner you seek financial guidance, the more options will be available to you.

Will I lose my home?

Losing the family house is probably the most common concern. So how is it possible to keep your house? 

Easy, really; it’s a matter of equity.

If you own a home that’s worth $350,000 and you owe the bank $350,000 you, in reality, have no equity in the house. The trustee will only sell your house if there is enough equity in the home if sold, to repay a number of your debts. So in this particular scenario, the trustee will then offer you some choices, one of which is to simply to continue paying the mortgage and stay in the house while you are bankrupt.

Will I lose my business or can I still be self-employed?

You cannot be a company director, but you can continue to run your own business as a sole-trader.

What assets can I keep if I go bankrupt?

You can keep just about everything when declaring bankruptcy except big things like houses, cars, shares and inheritances. Even things like houses and cars may be able to be saved. That’s the simple answer, but  take professional advice to see what your options are.

If you’re juggling your finances and avoiding phone calls, don’t wait any longer. Get in touch with the specialists at Bankruptcy Experts.

They offer a fast, professional service to help you help you to make an informed choice.

The first consultation is free, so there is nothing to lose by exploring your options.

You can call on 1300 795 575 or visit www.bankruptcyexperts.com.au or www.bankruptcyexpertsnewcastle.com.au for more.