Are your personal or financials obligations getting out of control?

What exactly is a Personal Insolvency Agreement?

This is an adaptable understanding between you and your creditors. It is controlled through a trustee who governs how much you will have to pay out and when you have to pay. Once those conditions have actually been met you are generally then free to begin again with a new beginning.

What is a Debt Agreement?

A debt agreement permits a debtor to take part in an arrangement with their lenders to pay off their financial debts without being made bankrupt.

You cannot become part of a Debt Agreement if you have been bankrupt, or if you are currently already in a debt agreement. Also keep in mind that there are additionally income restrictions, as well as restrictions on property value and unsecured debt value. If you wish to know more please get in touch with us on 1300 818 575.

How do you Choose?

Ultimately it is up to you, but don’t be fooled by certain companies because many of them have a strong bias! The main reason you find an abundance of expensive commercials on the TV in the Tablelands area inviting you to go for one of these alternatives is that there is huge amounts of cash in it for the services that provide them. You will notice (if you haven’t already) that every single business has the tendency to give (biased) recommendations according to the product that they offer. For instance, Debt Agreement Companies ridicule bankruptcy companies as a way of trying to increase their own business. It is pretty common across the industry, so ensure you don’t get fooled. And nor should this website be the only thing you read! We try to give unbiased advice, but please do your research across a range of sources to find what approach is going to be best for you!

Should I think about a Debt Consolidation Loan?

There are sometimes the very exceptional conditions where a debt consolidation loan is the best plan. Usually the issue with them is that all it is really doing is packaging 5-15 various debts into one sizable debt. If you are fighting to pay off all your different loans now, then why do you presume it will be magically simpler to get one enormous bill? 9 times out of 10 it is just not going to make it easier. Just to make all of it a whole lot worse you normally will have to pay up front for the ‘ luxury’ of this option. If you wish to get some clarification or more information on this, then just simply contact us on 1300 818 575 or go and download ‘The Big 5’ e-Book.

Will the bank allow me to keep my house even if I’m a bankrupt?

Why might the bank want bankrupt customers? Wouldn’t they need to sell your property and not take the chance? Bear in mind – the bank that has generously lent you the money for your house is making good money every month in interest from you, month in and month out. So long as you keep up to date with your monthly payments then the bank prefers you in there at all costs. On the other hand it is usually not the bank’s call – if a trustee concludes that there is plentiful equity in your house the trustee will force you and the bank to sell off your house.

How is equity worked out?

Many people are not quite confident about what exactly equity is, or how it is calculated– but it is certainly vital to determine considering that if you get it, it can mean the big difference between keeping and losing your home. There are a few factors you have to understand here. To start with, your gut instinct or guess about the real worth of the home is most likely far too generous. Many people presume their house is worth a lot more than it actually is.

Secondly, when you declare bankruptcy the trustee may ask about how you formed your price for the home. Sometimes they will seek more information about your valuation, maybe a rates notice or a real estate agency’s valuation or a registered valuation. An easy strategy would certainly be to look on www.realestate.com.au then click the ‘Sold’ tab on that site and look for the latest house sales in your community or neighbourhood. This will help you get some idea of the reality of the market right now. Remember, the appraisal is based upon a quick sale not a skillful real estate agent’s advertising and marketing campaign. So If you truly want a good idea, I would likely recommend getting a valuer and telling them to give you 2 prices for your house, one as a standard sale, and the other as a ‘quick sale’. This will give you a better appreciation for your home’s worth. Knowing this step is vital, so get some advice before proceeding, call us on 1300 818 575.

What if My House has too much Equity what can I do?

If your house has plenty of equity and you are nevertheless drowning in debt, there are still some possibilities available to you– it might be complicated, however the significant step is to talk to a professional to try and get ahead of it. In fact, this concerns cars or other assets you may have as well. What you can not afford to do is assume that everything will be ok. It is the bankruptcy trustee’s job to sell whatever assets you have when you file for bankruptcy and put that money towards your debts. Getting this wrong will be disastrous! Before you take your next step get some advice. We offer a free, initial consultation; just call us today on 1300 818 575.

Who will find out about my bankruptcy?

There are four groups of people that will learn that you are bankrupt.

1. Individuals that you tell
2. Your creditors or people you owe money to
3. . People that see your credit file when you’re bankrupt. However, the only way this will take place is if you sign a privacy form for them to access your credit history. You only ever do this when you apply for a loan.
4. You will be listed on the National Insolvency Index on the web somewhere. But this is not too big a problem because it is hard to locate and people have to pay to see if a person is bankrupt on it.

At Bankruptcy Experts Tablelands, we are completely conscious that there is still a stigma connected to bankruptcy. We are aware of this issue and we can help to make sure that if you declare yourself bankrupt that you don’t need to go to court, get your name in the newspapers or be publicly made out to be a criminal or some kind of failure. We can help ensure that bankruptcy is swift and easy. In fact, the whole process will only take a few days. It makes it possible for the ordinary person to get out of debt and on with their lives. For more detailed info about bankruptcy and your job, download ‘The Big 5’ e-book.

Bankruptcy and Income

First of all, it is important to know that changes are involving the world of bankruptcy. If you have to know what is taking place then focus now. Since March 2016 there have been modifications to the Income Threshold amounts. This suggests that there are modifications to just how much money you can keep when bankrupt. This is your net income after tax and child support (if applicable) are taken off. If you’re in a business when bankrupt then, obviously, it’s also net (after tax) of business spending, which is frequently calculated annually.

Your net income may be governed to consider things like salary sacrifice and substantial superannuation payments etc. Your net income might also enable more unusual costs suffered as a result of being employed. Such as, if you are subjected to an unusually high amount of travel charges to get to and from your job this can sometimes also be taken into consideration. Your bankruptcy trustee has to ascertain your real net income, based on the bankruptcy rules.

The income threshold figures are also per person and are set by the Government every March and September to allow for the movement in the cost of living.

Who is considered a dependent?

This may possibly be anybody, of any age, that resides with you and earns no more than $3,343 per year. If, in the case you have a child or children that you pay child support for and they do not live with you full-time, then you can not claim these particular children as dependents.

Can I forfeit my small business if I go bankrupt?

The straightforward answer is no, you don’t have to but you do need to get the best guidance. Company insolvency laws are very entailed and you need to tread cautiously if you wish to continue to be self-employed.

You may already recognise that you can no longer be the director of a Pty Ltd Company if you are bankrupt. Even so, that doesn’t inevitably mean you can’t run your very own business and recruit staff etc.

Should I put my company into liquidation?

Among the main reasons you may wish to consider liquidation as opposed to bankruptcy is because if you liquidate your company, it doesnt inevitably mean you have to go bankrupt. In Australia, businesses that become insolvent have a few options, such as liquidation, voluntary administration and so forth. If you need to know more call us on 1300 818 575.

Isn’t it illegal to run a similar business after bankruptcy?

It could be. There are points to consider when and if you declare bankruptcy as a small business owner. You can not run up heaps of debt in your company, then go bankrupt and after that open the doors the next day like nothing has happened. There are laws in effect to avoid these ‘Phoenix companies’ rising out of the ashes of an old company. Don’t get too stressed about what you can and can’t do as a company owner; just get the right advice by calling Bankruptcy Experts Tablelands today on 1300 818 575.