Busting Bankruptcy Myths
There are plenty of misconceptions and myths out there about bankruptcy and what it means. For starters, bankruptcy exists to protect debtors – not to empower creditors. It’s a legal process designed to ensure creditors can’t deprive you of life’s necessities or the possibility of a successful and happy future.
We help people overcome the obstacles and stigmas that get in the way of finding a better future. The first step is dispelling the myths surrounding bankruptcy and what it means. Here’s a list of the most common myths we find our clients have about bankruptcy and some clear guidance to get you started.
1.
I’ll never be able to travel again.
WRONG! There’s a common misconception that bankruptcy means you’ll never be able to leave Australia and you have to turn in your passport.
For most people, this just simply isn’t true. Yes, you may need to provide information about your travel to your trustees. However, if you are meeting your obligations and complying with the conditions of your bankruptcy, there will be no problems traveling to wherever you want to go.
2.
WRONG! There’s a common misconception that bankruptcy means you’ll never be able to leave Australia and you have to turn in your passport. For most people, this just simply isn’t true. Yes, you may need to provide information about your travel to your trustees. However, if you are meeting your obligations and complying with the conditions of your bankruptcy, there will be no problems traveling to wherever you want to go.
3.
WRONG! There’s a common misconception that bankruptcy means you’ll never be able to leave Australia and you have to turn in your passport. For most people, this just simply isn’t true. Yes, you may need to provide information about your travel to your trustees. However, if you are meeting your obligations and complying with the conditions of your bankruptcy, there will be no problems traveling to wherever you want to go.
4.
WRONG! This year alone, thousands of successful and responsible people were hit by catastrophes well outside their control, resulting in insolvency. For that reason, many banks actually assist people with blemished credit records. Yes, there will be a temporary record (5 years) on your credit rating which borrowers can access, but this doesn’t prevent you from obtaining credit either during or after bankruptcy. It’s up to the financial institution and you to decide.
5.
WRONG! This year alone, thousands of successful and responsible people were hit by catastrophes well outside their control, resulting in insolvency. For that reason, many banks actually assist people with blemished credit records. Yes, there will be a temporary record (5 years) on your credit rating which borrowers can access, but this doesn’t prevent you from obtaining credit either during or after bankruptcy. It’s up to the financial institution and you to decide.
6.
WRONG! This misconception does more damage the all the rest put together. Right now, thousands of Australians are experiencing financial distress caused by events no-one could have predicted. At Doug Constable Group, we work to change people’s point-of-view about bankruptcy, so they can learn to see it as the fresh start it really is.
Don't Wait For Financial Distress To Take Hold
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