FAQs | What Happens When You Become Bankrupt?
Prior to bankruptcy, a judgment creditor can apply to have your wages garnished. A judgment creditor is a creditor who has been to court and has been awarded judgment in relation to the debt by the court. Once you have the protection of bankruptcy the garnishee will be lifted. This will result in you having more money each pay; if you are able to save some money in your bank account for a rainy day, your savings are protected for you.
A heads up for you, for your savings to remain protected you must only have them in your normal bank account.
Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email firstname.lastname@example.org.