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Discussion Starter · #1 ·
hello everyone. im a long time lurker first time poster and i am bricking it! My partner is about to be declared bankrupt and i am terrified that this will affect his sponsorship of me. He has been employed for the past 3-4 years in the same job, recently had a pay rise and i've been living of his income with him since i got here last year..... has anyone had experience with this as i so scared that they're going to refuse my visa because of this.


thanks in advance!
 

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I wouldn't worry about it. As long as he doesn't owe debt to the Australian government, his credit is really irrelevant. Did you already apply? If so, I wouldn't worry. If you haven't yet, all they care about is that you can support yourselves - provide evidence you can do that (payslips, tax assessments, etc.) and it won't be an issue. In fact, I know it sounds backwards, but I'd think bankruptcy would almost go in your favor, I'd think, since with less debts, that's more money out of your partner's paycheck that can go towards supporting you. I mean, I wouldn't be ADVERTISING it to DIBP or anything, but it's not something they ask - like I said, they care only about Aussie Government debts.
 

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Discussion Starter · #3 ·
I wouldn't worry about it. As long as he doesn't owe debt to the Australian government, his credit is really irrelevant. Did you already apply? If so, I wouldn't worry. If you haven't yet, all they care about is that you can support yourselves - provide evidence you can do that (payslips, tax assessments, etc.) and it won't be an issue. In fact, I know it sounds backwards, but I'd think bankruptcy would almost go in your favor, I'd think, since with less debts, that's more money out of your partner's paycheck that can go towards supporting you. I mean, I wouldn't be ADVERTISING it to DIBP or anything, but it's not something they ask - like I said, they care only about Aussie Government debts.
Well half of his debt that he is going bankrupt for is tax debt but it gets wiped.... i am providing a whole years worth of bank statements as proof of financial togetherness *not even a word but hey ho* so they will be able to see we can comfortably live of just his income alone.
 

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I believe that a tax debt is a debt to the government but that is my opinion. That is because the money from our taxes goes towards roads, education etc and you are paying the government. But check with Mark and see what he thinks.

Also one thing I will mention is that I have heard that the ATO can re-instate your tax debt, but not sure on the truth with that one.

Also just remember when he goes bankrupt he will not be able to travel overseas during the bankrupt period without the permission of the courts, take our credit cards, get loans etc. Also will find it very hard to rent a property too. I thought I would just mention it as most people think that going bankrupt is easy, but I had a friend who did and she said it was the worst decision she ever made.

Has he tried to go into a payment plan with the ATO to pay back the debt?
 

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Discussion Starter · #5 · (Edited)
I believe that a tax debt is a debt to the government but that is my opinion. That is because the money from our taxes goes towards roads, education etc and you are paying the government. But check with Mark and see what he thinks.

Also one thing I will mention is that I have heard that the ATO can re-instate your tax debt, but not sure on the truth with that one.

Also just remember when he goes bankrupt he will not be able to travel overseas during the bankrupt period without the permission of the courts, take our credit cards, get loans etc. Also will find it very hard to rent a property too. I thought I would just mention it as most people think that going bankrupt is easy, but I had a friend who did and she said it was the worst decision she ever made.

Has he tried to go into a payment plan with the ATO to pay back the debt?
i know it's a debt to the government but according to his bankruptcy lawyer it gets wiped as soon as his bankruptcy is finalised (withing the next two weeks)

i have emailed the australian high commision migration branch in the uk previously and got a response that


"....even tax debt cannot stop your boyfriend from sponsoring you."


and i've also rung immigration here and asked about sponsor tax debt and apparently they dont look into it thats also the advice of migration agents i've asked.... i'm in a whole massive confusion atm how can tax debt not affect it but bankruptcy might do??
 

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A lot of things will not affect you sponsoring as people can sponsor on Centrelink.

Here are my thoughts around it but this is just a guess and going on what I know from other people. A tax debt when you are paying it off is not classed as a debt to the government because it is current and you are currently paying it off and it has not become due and payable. Once they call in the debt collectors or you can bankrupt it is then classed as a debt to the government.
 

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hello everyone. im a long time lurker first time poster and i am bricking it! My partner is about to be declared bankrupt and i am terrified that this will affect his sponsorship of me. He has been employed for the past 3-4 years in the same job, recently had a pay rise and i've been living of his income with him since i got here last year..... has anyone had experience with this as i so scared that they're going to refuse my visa because of this.

thanks in advance!
If your partner is/was employed then tax can not be his issue as it is paid by the employer or should be. You state a pay rise again it sounds like employed not a sub-contractor so there must be more to it - can you explain better.
 

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Discussion Starter · #8 ·
all his debts including his tax debt are from his previous marriage which ended in 2009-10 when he had his own buisness for a year. it's not a new one but he has had anxiety problems (medicated) and heart problems since the break up and hasnt wanted to face it till he met me he's been too scared. He wont have a tax debt from the past four years at all but he has done previously and it wasn't sorted for the above reasons.
 

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Enter a payment plan even if for 5 or 10 years with the tax department - never upset them if it is actual money owed to them (if possible) the rest will often take 10-20 cents in the $ and he can walk out clean after paying that. PM me if that is an option will give more accurate advice (I know of company and tax things a little).
 

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Enter a payment plan even if for 5 or 10 years with the tax department - never upset them if it is actual money owed to them (if possible) the rest will often take 10-20 cents in the $ and he can walk out clean after paying that. PM me if that is an option will give more accurate advice (I know of company and tax things a little).
Exactly! They even let people pay small amounts like $20.

Do you anything about ATO being able to reinstate the debt after going bankrupt? Someone told me that and I thought it was interesting (not that I am going bankrupt I am just curious).
 

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The tax debt can be around his neck long after a visa issue (not that it was for the visa) Even if it was a Pty Ltd company see if he can sort it with the ATO. It leaves many more options open to him/you in work and travel.
 

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Discussion Starter · #14 · (Edited)
The bankruptcy wipes the tax debt completely! He isn't liable for it once he's declared bankrupt ive asked his bankruptcy lawyer these things a million times. His bankruptcy doesn't affect my work or my travel only his and thats only certain jobs and you can still go abroad if someone else pays ie: me!
 

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Interesting... my parents declared bankruptcy in the US, and the only thing that could NOT be wiped was debt to the government... tax debts and educational loans. Like I said, interesting! I don't know how it works here though - I'd take Mish's advice and post on the "Ask Mark!" thread at the top of the forum and ask a real agent. Make sure to mention the tax debt.
 

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Interesting... my parents declared bankruptcy in the US, and the only thing that could NOT be wiped was debt to the government... tax debts and educational loans. Like I said, interesting! I don't know how it works here though - I'd take Mish's advice and post on the "Ask Mark!" thread at the top of the forum and ask a real agent. Make sure to mention the tax debt.
Now I am interested to read about bankruptcy in the US hehe. They can't wipe HECS I know that for sure.

OP - I know you are partner is already in the process but if you can please reconsider. My friend that did it said it was the worst thing she did and didn't realise how hard it would be. It affectes her even after the bankruptcy period as was on her credit report so took her a long time to be able to get a house loan (about 10 years). She couldn't get a brand new car when she was bankrupt as couldn't buy anything for over $4k or so, so she could only get a lemon or bomb.

Good-luck with it :)
 

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I haven't completely lost it (yet). I knew that I had heard that the ATO can re-instate your tax debt (had a vague memory from tax law at uni) and I found out that if you earn over a specific amount after tax you need to make payments to your bankruptcy estate. That amount is about $52,500 after tax with no dependants.

Strangely enough I find this interesting .... Maybe I should change occupations
 

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Mish, that makes sense to me. It doesn't seem right that you can simply wipe clean debt and start fresh if you're income is high enough. I realise bankruptcy has a lot of negative consequences, but I think people often treat it too lightly in order to start over again financially.
 

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Discussion Starter · #19 · (Edited)
He hasn't taken this decision lightly trust me. He doesn't earn high enough to make contributions anyway especially with me being classed as a dependant (which by law I apparently am) back in the uk I own my own house outright no mortgage so buying a house here once my visa is granted isn't going to be a problem we don't need a home loan. I have asked mark and he said it won't be an issue, as has the migration agent that has just accepted my application. And another one I emailed yesterday asking about both bankruptcy and tax debt.
 

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We didn't disagree with the immigration part we were just advising on the bankruptcy part to help you out, incase you were unaware as some don't realise until it is too late. I would not want to see anyone go through what my friend did.

Incase you are not aware. In Australia if you are not a citizen you need permission to buy property (your partner can not be on the title during bankruptcy period). Even as an Australian citizen if I bought property with my husband we need to apply for permission for him to buy property with me :(. Not sure why you need to when one is a citizen...
 
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