Bankruptcy in Gold Coast - Will my income be affected if I go bankrupt?

Bankruptcy Gold Coast is a confusing process, and you ought to ensure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you need to know about going bankrupt is there is no limit on how much you can earn. However, I will say that your income is a serious consideration when working through when it comes to Bankruptcy.

The very first thing you need to know about this area of Bankruptcy is just how much you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand amount you earn each year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can get a hardship variation that raises the threshold amount, if you have costs in Gold Coast such as medical, child care, serious travel to and from work, or a situation where your partner used to work but is not able to contribute to the family income.

Some of the insightful parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into account in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you pay $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are a lot more issues surrounding income and what is or isn't regarded as income - if you're not exactly sure, it's recommended to get experienced advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically sensible option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund may be taken by the ATO whilst you are bankrupt to add toward your tax bill. If you don't have a tax bill then you will keep your tax refund so long as that doesn't take you over your threshold income limitations.

If you feel like when it comes to Bankruptcy, your case is more challenging, then please get specialist advice in Gold Coast. I may seem like a broken record, but remember that it's always a good idea to overcome these options prior to declaring bankruptcy, due to the fact that once you have filed the paperwork it's too late to change your mind.

If you intend to find out more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Advice Gold Coast on 1300 879 867, or check out our website: bankruptcy-advice.com.au/Gold Coast .

Bankruptcy in Canberra - Choices, Choice, Choices

When it comes down to Bankruptcy Canberra, there are a load of options that we get given depending on who we are, who we talk to, and what exactly has happened. The most common trouble I see with Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Canberra, a lot of the related information you receive on this issue will reflect the interests of the advice giver. Therefore, if you call a debt consolidation company, I can assure you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very basic way: charging you a fee for helping you wrap each one of your credit card and personal loans into one neat and tidy bundle.

I hate to tell you this but they won't be doing it free of charge. Please don't misunderstand me: if you believe your financial issues in Canberra might be fixed by paying less interest, then go ahead and check out the choices. Even a small amount of interest saved over years easily adds up.

Usually I find if you are reading this blog you've most likely attempted to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is not good, and your credit file already has nonpayments on it so nobody will offer you a loan, consolidated or otherwise,.
• By the time you work all of it out, you're so far down a hole that saving on a small amount of interest just won't make a great deal of difference,.
• You've probably gotten to the stage where you've had enough, you're emotionally worn down, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes down to Bankruptcy in Canberra, what's the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Flexibility is the main point Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - may I add - regulated trustee featuring the government trustee ITSA, and not a private company that advertises on TV. Basically this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts negotiate a deal in your place. You can give a lump sum settlement figure or take part in a payment plan, or you can offer them assets as an alternative to cash. This can sound acceptable when it comes to the problems with Bankruptcy - that is until you realise that one of the difficulties with PIA's is that 75 % of the people you owe money to will have to come to an understanding the deal. If they do not, your proposal is rejected or will have to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they'll opt for beneath the amount you owe them - it's normally a percentage of the debt - but allow me to stress this aspect: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will really settle for.

In most cases you'll have to pay back 100 % of the debt owed. This is not because your creditors are greedy or have a mean streak, it's because the administrators take 20 % of whatever is agreed upon with the people you owe money to. That applies whether you use a private company for this process or ITSA, the government body setup to administer to these PIAs.

When it comes to Bankruptcy and insolvency I've come across creditors opting for less 80 % on rare occasions, but that usually only occurs with a public company going into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of shrewd lawyers and some very clever frameworks in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Canberra aren't going to get that lucky!

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Canberra on 1300 795 575, or visit our website: bankruptcyexpertsCanberra.com.au.