Dispelling the Myths

The idea of going bankrupt can be frightening, but there are a lot of misconceptions floating around that could be causing you unnecessary grief. Here we dispel five common myths about bankruptcy.

Myth 1: You Can’t Travel if You’re Bankrupt

A bankrupt person can still travel overseas – provided they have written permission from their bankruptcy trustee.

If you’re meeting the conditions of your bankruptcy agreement, you’ll probably be able to travel abroad. But you will need to apply for written permission from the registered trustee managing your bankruptcy. They may ask you questions about your travel such as your destination, travel dates, and how you’re paying for the trip. It’s illegal to travel overseas without permission, beyond the agreed dates and destinations, or not comply with any trustees. Be careful to apply for permission in advance of your travel.

Myth 2: Everyone Will Know

Although many people associate bankruptcy with shame, there isn’t anywhere near the stigma that there used to be. There may be some financial challenges in front of you, but you can and will get through them, and life will still go on. If you do go bankrupt, your name and details will be recorded on the publicly accessible National Personal Insolvency Index however few people check this information. In most cases, the only people who are aware of your bankruptcy are those you choose to tell and your creditors.

Myth 3: They’ll Take Everything

The idea that your home will be raided by authorities snatching goods off your shelves until they amass the value of the debt you owe is completely false. The truth is that you will not lose your personal or household items. The only items that stand a chance of being sold to pay off your debts are assets that are worth a substantial amount in equity, such as a house or a car.

Myth 4: Bankruptcy is an Easy Fix for Financial Companies

Although bankruptcy isn’t the end of the world, it’s still a difficult process that takes time to go through. Be wary of companies promising a quick fix – they may end up making your life harder in the long run with exorbitant fees and interest rates. The truth is, it takes work to educate yourself and make the right decisions. While commissioning help is vital, it’s even more important to ensure that you’re not being taken advantage of.

For honest advice, and genuine support, give our insolvency consultants a call. We care about helping you get back on the right track in a way that best suits your situation.

* The information on this page should not be taken as legal advice