Checklist of Bad Things in a Bankruptcy

  • Public Record - Your bankruptcy is a form of public record and will appear on your credit record.

  • Borrow - You won’t be allowed to borrow money in any way unless you make clear that you are a bankrupt.

  • Overseas - You are restricted from travelling overseas without approval of the bankruptcy official and in some cases only with approval of the court.

  • Passport - You must surrender your Passport as soon as the bankruptcy official requires it after you file for bankruptcy.

  • Advertised - Your bankruptcy is generally advertised in your local paper and in the papers where most of your creditors are located

  • Monitored - You have to advise the bankruptcy official (or the trustee) every time you change your name, address or place of work and telephone number during the period of bankruptcy.

  • Pay Support -You may still have to pay out of your wages such things as child support etc.

  • Winnings - Any lump sum payments you receive during your bankruptcy will have to be handed over to the bankruptcy official. For example, winnings in the lottery or money bequeathed to you in a Will.

  • Assets Gone - All your assets, apart from those that allow you to live a reasonable life, will be confiscated and sold to raise funds to pay creditors.

  • Assets back - If you gave away or sold any of your assets in a certain time before going bankrupt, then the bankruptcy official can require for those assets to be returned, or cash to be returned into the bankruptcy fund pool.

  • Stigma - The bankruptcy will leave a stigma on your record and it can disadvantage you in other situations that arise while you are earning, or while you are trying to obtain a mortgage or credit card etc.

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