If you are having trouble paying your personal debts, and if you are constantly being harassed by creditors, you should seek professional advice from an accountant, lawyer or a qualified insolvency practitioner.
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The Bankruptcy Act contains a number of thresholds and limits that are regularly indexed. The tables below have just been released on 20 September 2019. In essence, a Bankrupt person can keep a car up to the value of $8,000 and tools used to earn income of $3,800.
|Protected Assets and Limits Motor Vehicles||Limit $8,000||Note A bankrupt may keep a vehicle up to this limit. This amount refers to the equity in a vehicle subject to finance.||Warning|
|Protected Assets and Limits Tools||Limit $3,8000||Note A bankrupt may keep tools used to earn an income up to this limit.||Warning Failure to disclose status as a bankruptcy may result in criminal charges.|
|Protected Assets and Limits Credit Limit||Limit $5,812||Note A bankrupt or debt agreement debtor must disclose their bankrupt or debtor status when seeking any credit or finance above this limit.||Warning|
|Protected Assets and Limits Bankruptcy Notice||Limit $5,000||Note This is the minimum amount upon which a bankruptcy notice can be issued. Below this, a creditor cannot apply for bankruptcy of a debtor.||Warning Not an indexed amount.|
During the period of bankruptcy (normally 3 years until automatic discharge (unless release from bankruptcy is objected to by the Trustee)) there are no limits on the amount a bankrupt person may earn.
However, once a bankrupt person earns more than the statutory amounts, they are required to pay Income Contributions to their Bankrupt Estate. These payments only continue during the bankruptcy period.
|Below these amounts, based on number of dependents, a bankrupt will not have to pay income contributions. Above these amounts, contributions must be paid.|
|Number of Dependents 0||(after tax amounts) $58,331.00|
|Number of Dependents 1||(after tax amounts) $68,830.58|
|Number of Dependents 2||(after tax amounts) $74,080.37|
|Number of Dependents 3||(after tax amounts) $76,996.92|
|Number of Dependents 4||(after tax amounts) $78,163.54|
|Number of Dependents Over 4||(after tax amounts) $79,330.16|
|Amounts are updated 20 March and 20 September each year|
If your debts and income are below the amounts detailed, you may be eligible to undertake a Part IX Debt Agreement. Above these amounts, a Part X Personal Insolvency Agreement may be appropriate.
|Eligibility for Part IX Debt Agreement or Part X Personal Insolvency Agreement Unsecured Debts If unsecured debts are below this limit, a Debt Agreement can be proposed. Above, the limit a Personal Insolvency Agreement applies.||Limit $116,662.00|
|Eligibility for Part IX Debt Agreement or Part X Personal Insolvency Agreement Unsecured Assets If divisible assets are below this limit, a Debt Agreement can be proposed. Above the limit, a Personal Insolvency Agreement applies.||Limit $233,324.00|
|Eligibility for Part IX Debt Agreement or Part X Personal Insolvency Agreement Income Level If income is below this level, a Debt Agreement can be proposed. Above the limit, a Personal Insolvency Agreement applies.||Limit $87,496.50 (net of tax)|
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