Bankruptcy Act stipulates statutory thresholds

The Bankruptcy Act stipulates statutory thresholds on income, assets and unsecured debts for the different products:

Bankruptcy

Bankruptcy does not have any eligibility thresholds or criteria, however, bankruptcy does have statutory limits for assets which a bankrupt can retain and thresholds on income before statutory income contributions become payable. The most common statutory limit for assets which a bankrupt can retain are listed below:

  • Most ordinary household items (but not luxury items like art or antiques)
  • Personal items including clothes
  • Motor Vehicle (worth < $7,600)*
  • Tools of Trade (worth< $3,700)*
  • Superannuation (subject to limits)

Use our free statutory income contribution calculator to see if you may be liable for statutory income contributions :

Income Contribution Calculator

Find more information about Bankruptcy.

Debt Agreement

You may be eligible to propose a Debt Agreement if your:

  • Unsecured debts are < $108,162.60; and
  • Equity in assets are < $108,162.60; and
  • After tax annual income is < $81,121.95 or approximately < $113,304 ( (before tax for Australian residents)

Find more information about a Debt Agreement.

Personal Insolvency Agreement

You may be eligible to propose a Personal Insolvency Agreement if your:

  • Unsecured debts are > $108,162.60; or
  • Equity in assets are > $108,162.60; or
  • After tax annual income is > $81,121.95 or approximately > $113,304 (before tax for Australian residents)

Debt Free are industry experts and can explain how these statutory thresholds and limits may be applied to your situation and which personal insolvency product is best for you. Debt Free offers all three products so you can be rest assured you will receive truly professional advice and assistance.

Find more information about Personal Insolvency Agreement.

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