|
Disadvantages of Bankruptcy |
1.a bankrupt's financial affairs and dealings are subject to thorough investigation;
2.there is a set rate at which the bankrupt must contribute to their debts if they earn income;
3.bankrupts will lose most of their valuable property;
4.hire purchase companies may repossess the bankrupt's goods under bill of sale unless monthly payments are maintained; |  |
5.any savings or valuable goods acquired during the bankruptcy may be taken away;
6.bankrupts must not obtain credit for $4,145 (indexed), or more, from any one source without disclosing that they are bankrupt. To do so is an offence;
7.bankrupts must not write a cheque or cheques for $4,145 (indexed), or more, to pay for goods or services without disclosing the fact that they are bankrupt. To do so is an offence;
8.an undischarged bankrupt has a duty to disclose the fact they are bankrupt if they trade 9.under any business or assumed name;
10.a bankrupt will still be liable for any court fines or maintenance debts;
11.discharged bankrupts may have difficulty in obtaining unsecured credit in the future;
12.fees are charged by the trustee in bankruptcy and paid from the sale of property;
13.information on bankrupt persons is available on a computerised register of bankruptcies called the "National Personal Insolvency Index", which is a public record. |