Jones Partners

• When should I consider getting professional advice concerning my financial affairs?
  
  If you are experiencing difficulties in making payments on time, ie credit cards, loan payments or other amounts and there is unlikely to be any significant change to this situation in a short period (such as obtaining gainful employment), you should speak to an insolvency professional. There are many service providers that will offer short-term finance and other options as a means to deal with financial difficulty. We believe that an action plan implemented and monitored by a professional is typically required in these situations. Obtaining short-term finance can invariably increase the level of financial difficulty if the core issue is not addressed.

• How long am I bankrupt for?
  
  Generally three (3) years although this can be extended if there are certain non-disclosures or other offences committed by you.

• Can my bankruptcy be cancelled early?
  
  Yes this is done via a term known as “annulment”. It generally involves creditors accepting something less than payment in full or alternatively you paying all creditor’s debts and trustee’s fees.

• Can I travel if I am declared bankrupt?
  
  Yes, however your trustee will usually seek certain details regarding why you are seeking to travel (ie work, family or holidays), in addition to ensuring that you do not have any other outstanding responsibilities, ie unpaid income contributions.

• If I am bankrupt can I be a director of a company?
  
  No during the term of a bankruptcy you cannot be a director of a private or public company.

• Will personal insolvency affect my credit rating?
  
  Yes it will generally be noted on your credit file, however we encourage individuals to obtain a copy of their credit file subsequent to the end of the bankruptcy to ensure that the records effectively reflect that you have now been discharged from bankruptcy.

• Will all my household furniture and effects be taken if I declare bankruptcy?
  
  No this is a common misconception. Your trustee will generally seek you to provide an itemised listing of such items and determine if it appears excessive in accordance with the items prescribed in the Bankruptcy Act. Should there be “excessive” items then your trustee may seek to realise these items.

• What payments do I have to make whilst I am bankrupt?
  
  During a bankruptcy, your trustee will assess the level of your income with reference to a certain threshold, the number of dependents and other factors. Should you income exceed this threshold then you will be required to make income contributions to your trustee. Your income is assessed annually during the course of the bankruptcy.

There are many other questions that can arise when an individual is in financial crisis. Through our experience Jones Partners are in a position to help you through the maze of fact and fiction.