Losing your house: How much do you understand about Bankruptcy in Hobart?

The greatest concern a lot of people have when they come to our company about Bankruptcy is usually 'Can I manage to keep my house?' and in many cases the truth is yes, you can keep your house.

The only reason you will likely be compelled to sell your family home if you file for bankruptcy is because you have so much equity in the house that it is viewed as an asset. Please go over these simple hypothetical case studies below to get your head around Bankruptcy and how it has an effect on houses in Australia. Remember If you need to know more about Bankruptcy and houses feel free to contact us here at Bankruptcy Advice Hobart on 1300 879 867, or go to our website: www.bankruptcy-advice.com.au/Hobart.com.au

Case Study 1. (Mike & Sue Smith).

5 years ago Mike and Sue purchased a house in a mining town for $450,000. At this time the mining boom was keeping all the property prices nice and high. Now they are needing to look at Bankruptcy considering they have massive debts of $80,000 on top of their mortgage and credit card and tax debt.

They really wish to keep their house but wonder if they can, they know that house prices if anything have gone down in the area in the last 5 years so to be safe they think that their house is still only worth $450,000 after all these years, to be sure they searched www.realestate.com.au/ sold section of the website to see what other homes in the streets nearby have sold for recently.

Unfortunately they have not paid any principal of the home loan over the last 5 years, mainly just interest, so they still owe $450,000.

Current House Value = $450,000.

Current Mortgage Value = $450,000.

Net Equity Value = $0.

Because there is no equity in this particular property the trustee will not ask Mike and Sue to sell their house when they go bankrupt, as long as they keep up the mortgage payments then all will be well for these people for the 3 years they are in bankruptcy.

At the end of the bankruptcy period of time the trustee will write to them and ask if they wish to take over ownership of their house again and as long as it has not increased in price over the 3 years they have been bankrupt they will be asked to make an offer to have their house back. This is usually somewhere between $3,000 and $5,000 to cover the legal costs of altering the land title deed etc.

Now let's have a look at a slightly different example of Bankruptcy and houses.

Case Study 2. (Bill & Michelle Johnson).

2 years ago Bill and Michelle purchased a townhouse in a lovely suburb of Hobart for $850,000 they tipped in $50,000 as a deposit and now the townhouse two years later is worth $900,000.

Current House Value = $900,000.

Current Mortgage Value = $800,000.

Net Equity Value = $100,000.

Due to a recent business failing Bill is about $240,000 in debt. Michelle who does work in banking has a separate job and no other debt apart from the mortgage. Bill cannot pay his debts so he is looking at Bankruptcy. Michelle is bothered that she too may need to declare bankruptcy or be obliged into it as a result of the house loan.

With this particular case the trustee is required to access or get their hands on Bill's part of the equity which is $50,000 less selling costs. They can do this in a few ways; 1. Have them sell the home. 2. Invite Michelle to buy Bills half of the equity. 3. leave them in the home - but It's very improbable in this case that the trustee would be happy to leave Bill and Michelle in the house because there is just too much equity.

So Michelle may be capable to purchase Bill's share of the equity by coming up with $50,000 and buying out Bills' half and from that moment its now 100 % Michelle's house.

Property and Bankruptcy in Australia is challenging and complicated, these two case studies above are just the tip of the iceberg as far as your options in Hobart are concerned. If you need to know more about Bankruptcy and houses feel free to consult with us here at Bankruptcy Advice Hobart on 1300 879 867, or check out our website: www.bankruptcy-advice.com.au/Hobart.com.au.

Losing your house: Just how much do you know about Bankruptcy in Gold Coast?

The primary concern people have when they come to our team regarding Bankruptcy is normally 'Can I manage to keep my house?' and in many cases the answer is yes, you can manage to keep your house.

The only reason you are going to be forced to sell your family home when you file for bankruptcy is actually because you have a lot of equity in the home that it is regarded as an asset. Please read through these straightforward hypothetical case studies below to get your head around Bankruptcy and how it has an effect on houses in Australia. Remember If you have to know more regarding Bankruptcy and houses feel free to contact us here at Bankruptcy Advice Gold Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/GoldCoast.au

Case Study 1. (Mike & Sue Smith).

5 years ago Mike and Sue bought a house in a mining town for $450,000. At this time the mining boom was helping keep all the property prices nice and high. Now they are needing to look at Bankruptcy considering they have substantial debts of $80,000 on top of their mortgage and credit card and tax debt.

They really wish to keep their house but wonder if they can, they know that house prices if anything have gone down in the area in the last 5 years so to be safe they think that their house is currently only worth $450,000 after all these years, to be sure they searched www.realestate.com.au/ sold section of the website to see what other homes in the streets close by have sold for fairly recently.

Having said that they have not paid any principal of the home loan over the last 5 years, mainly just interest, so they still owe $450,000.

Current House Value = $450,000.

Current Mortgage Value = $450,000.

Net Equity Value = $0.

Because there is no equity in this property the trustee will not ask Mike and Sue to sell their home when they go bankrupt, as long as they keep up the mortgage payments then all will be well for them for the 3 years they are in bankruptcy.

At the end of the bankruptcy time period the trustee will write to them and ask if they wish to take over ownership of their house again and so long as it has not grown in price over the 3 years they have been bankrupt they will be asked to make an offer to have their house back. This is typically somewhere between $3,000 and $5,000 to cover the legal costs of changing the land title deed etc.

Now let's take a look at a slightly different example of Bankruptcy and houses.

Case Study 2. (Bill & Michelle Johnson).

2 years ago Bill and Michelle purchased a townhouse in a nice suburb of Gold Coast for $850,000 they tipped in $50,000 as a deposit and now the townhouse two years later is worth $900,000.

Current House Value = $900,000.

Current Mortgage Value = $800,000.

Net Equity Value = $100,000.

As a result of a recent business downfall Bill is about $240,000 in debt. Michelle who does work in banking has a separate job and no other debt other than the mortgage. Bill cannot pay his debts so he is looking at Bankruptcy. Michelle is concerned that she too may need to declare bankruptcy or be pushed into it because of the house loan.

With this particular case the trustee is required to access or get their hands on Bill's part of the equity which is $50,000 less selling costs. They might do this in a few ways; 1. Make them sell the home. 2. Invite Michelle to buy Bills half of the equity. 3. leave them in the home - but It's very unlikely in this case that the trustee would be happy to leave Bill and Michelle in the house because there is just too much equity.

So Michelle may have the chance to purchase Bill's share of the equity by coming up with $50,000 and buying out Bills' half and from that moment its now 100 % Michelle's house.

Property and Bankruptcy in Australia is confusing and demanding, these two case studies above are just the tip of the iceberg as far as your options in Gold Coast are concerned. If you need to know more about Bankruptcy and houses feel free to consult with us here at Bankruptcy Advice Gold Coast on 1300 879 867, or go to our website: www.bankruptcy-advice.com.au/GoldCoast.au.

Bankruptcy Gold Coast, Just what is the Deal with Debts?

So what Debts are removed if I go Bankrupt?

The uncomplicated answer is that when it involves Bankruptcy most debts are wiped, and I have added a table below for you to look at.

But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) as well as any debts arising from uninsured Motor-vehicle claims and educational debts for example, HECS or FEE-HELP. These debts are not removed when you file for bankruptcy.

What about Secured Debts?

A secured debt is a vehicle loan or a home loan; it is a debt that has some definite security attached to it. So for example if you buy a new car for $40,000 dollars the security for this car is the actual car itself.

So, can my secured debts be erased if I file for bankruptcy?

Yes. If you have a car loan for $40,000 you can have that debt erased if you simply hand back the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts can be wiped but the asset must be sold or returned. This is just one element that, when it comes to Bankruptcy, it is vital to get professional help - like that you can find at Bankruptcy Advice Gold Coast.

What about my Tax Debts with the ATO can they be eliminated If I go bankrupt?

Yes they can, both business and personal debts owing to the ATO can be erased with bankruptcy. If you have a business with any type of debts get some advice because it is not always so simple. Feel free to call us right here over at Bankruptcy Advice Gold Coast if you have any type of questions on 1300 879 867. Or feel free to head to our website: www.bankruptcy-advice.com.au/GoldCoast.au

What about my business or Company debts?

In some cases when it concerns Bankruptcy we can aid you with your business debts, call us concerning this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Normally you may have to liquidate a company to deal with the debt that way. When it comes to Bankruptcy, it can be a complicated area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Advice Gold Coast we specialise in business and personal debts so give us a call here at Bankruptcy Advice Gold Coast if you have any questions regarding Bankruptcy on 1300 879 867. Or feel free to head to our website: www.bankruptcy-advice.com.au/GoldCoast.au

Bankruptcy, Will I lose my Superannuation?

Bankruptcy Australia can be complicated and difficult to understand. A question we usually get asked here over at Bankruptcy Advice Gold Coast is 'what happens to my super if I declare Bankruptcy'? The answer for most is easy, if your super is probably in a regulated fund or industry fund like Sunsuper or Host Plus then nothing happens; your super is 100 % safe when it involves Bankruptcy.

What if I have a Self Managed Super Fund?

This is a growing concern, think of the increasing number of members of Self-Managed Super Funds ("SMSFs") in the last few years; the ATO tells us it has expanded Australia-wide from 758,589 in 2009 to 1,011,689 in 2014. So what happens to these Superfunds when it comes down to Bankruptcy?

Remember Bankruptcy Advice Gold Coast is not suggesting this post is the whole story, if you have any questions feel free to consult with us on 1300 879 867. Whether you call us or someone else it does not matter, just please don't walk into bankruptcy blind when it comes to your SMSF in fact we strongly recommend you obtain both legal and financial advice before proceeding with any of the actions suggested in this article.

What is a Disqualified Person?

First and foremost, if you are thinking about Bankruptcy, you can not be a part of a SMSF. Why? Because if you are confronting bankruptcy, you will be categorized as a 'disqualified person'. And a disqualified person cannot operate as an Individual Trustee. This poses a problem since usually most of the SMSFs are just 2 people, which means each of these members will need to also be the individual trustees. The position of trustee sets a lot of legal rules, and if you are in this position I would highly encourage you to end up being familiar with them all-- including the fact that you can not 'know or suspect' that one of you are bankrupt. So you can see how an individual bankruptcy can be quite detrimental to a SMSF and as you can assume the process of Bankruptcy for a SMSF is rather convoluted.

How much time do I have so as to restructure my SMSF Fund after I'm bankrupt?

So what comes about if one of the members of an SMSF does enter Bankruptcy?

For starters, the SMSF will need to be restructured. This means that you will have to consider your complete structure and make sure it is meeting the basic conditions, including things like having a new trustee that is not suffering from issues with Bankruptcy. The Australian Tax office will supply you a 6 month 'grace period' to get this done before you face penalties. And keep in mind, sometimes the most ideal plan would be to simply roll the fund into an industry or corporate fund.

Beyond these large scale restructuring issues, there is a lot of paperwork to deal with too, and you need to be constantly keeping the ATO informed of what is happening. This indicates you will need to let them know that you have a bankruptcy concern with your current trustee, that they are being removed as soon as possible know who the new trustee/director is. The Bankrupt will also have to inform the ATO using the form NAT 3036 (Found on the ATO website) and they will need to also notify ASIC of their resignation.

Through that 6 month period you will need to remove the Bankrupt from the SMSF-- including their property and assets. Remember if you are not exactly sure call Bankruptcy Advice Gold Coast for some free advice on 1300 879 867.

What if I have a single member fund?

If you are a single member fund, then you will need to appoint a new director, and it will then become their obligation to oversee the sale and transfer of assets into a managed fund. If there are two or more members, than the bankrupt member will need to resign and the other member will clear away the property and halve the proceeds. They would then want to decide if they choose to remain as a single member SMSF, or if they want to roll everything into a managed fund. If both members are entering bankruptcy, then they will need to sell all assets at once and move the liquid assets to the managed fund.

From this you can see how when it comes to Bankruptcy, even when one single member is running into issues, it can affect the very existence of an SMSF. If you are right now facing this matter yourself, or with a partner in a SMSF, please seek financial advice to make certain you are meeting the ATO requirements.

A simple solution ...

As I recommended earlier, a simple solution to your SMSF situation is to put your super back into a normal regulated managed fund prior to bankruptcy and save yourself all the problems outlined above. Bankruptcy is never easy, but getting proper advice is the best first step. If you want to discuss your possibilities further, give us a call at Bankruptcy Advice Gold Coast or visit our website: www.bankruptcy-advice.com.au/GoldCoast.au or just give us a call on 1300 879 867.

Bankruptcy in Gold Coast - Will I lose my house if I go bankrupt?

Bankruptcy Gold Coast is a complicated process, but I know from meeting with thousands facing the prospect of bankruptcy over the years, that almost nothing concerns people more than the idea of losing the family home. Almost everyone is on an emotional level connected to their home - it's where the children have grown up, it's where you take pleasure in life on a day to day basis.

Will you lose your house if you go bankrupt? The reply is a resounding maybe. (not very helpful, I know) People typically presume it's an inevitable consequence and a part of Bankruptcy, and hence push themselves to the brink of insanity to not lose the family home. But when it comes to the whole process of Bankruptcy, a key benefit of Debt Agreements and Personal Insolvency Agreements is you can keep your house. The reason is simple: you've accepted to pay back the debt you are in.

So how is it possible to keep my Gold Coast house, you ask? It's easier if I explain the basic concept behind the Bankruptcy process as administered by the trustee, then you'll have a clearer idea.

The job of the bankruptcy trustee is to firstly follow the regulation of the bankruptcy act 1966 (it's a very boring read about 600 pages if you are eager).

Within that regulatory framework, the trustee is to help recuperate monies owed to your creditors, that is executed in a bunch of different ways but it mainly comes down to income and assets. The trustees role is to collect payments over your income threshold. The further role is to sell any assets that can contribute to repaying your debts.

What this seems like is that yes the trustee will sell your house right? Not normally. The only reason the trustee will sell any asset including your house is to get money to repay your debts. If there is no equity in your house then it's pointless to sell your home. This is happening increasingly more since the GFC as house prices in many regions have been heading south so what you paid 4 years ago may not necessarily reflect the price today.

A quick tip here if you have a house in Gold Coast and are looking at Bankruptcy: get a professional to help you through this process, there are a number of variables in these scenarios that need to be considered.

You might wonder, why would the bank want bankrupt clients? wouldn't they prefer to sell your house and not take the risk? The bank that has nicely lent you the money for your house is earning good money every month in interest out of you, month in month out, as long as you keep up to date with your payments then the bank wants you in there at all costs. Essentially however it's not the bank's call if the trustee decides that there is loads of equity in your house the trustee will force you and the bank to sell the house.

When you file for bankruptcy you are asked to note the value of your house and the quantity you owe on the house. A tip if you are trying to work out the value of your house: use a registered valuer as this will provide you peace of mind, don't use your neighbours' gut feel recommendations or a real estate agents advice to get to this figure. When you get a valuer out to your home, see to it you tell the valuer to value the property for a quick sale, make sure you mow the lawn and don't leave the kitchen in a mess also.

Valuers used to offer two valuations: one for a quick sale and one for a well marketed non time sensitive sale. Nowadays that's not the case, but if you meet them and tell them you need to sell your home in the next 30 days you may control the result. The idea is that you want a reasonable sell now figure.

There are two main reasons this valuation system is critical to you: one you will certainly have peace of mind ascertaining the market value of your house, then afterwards you can easily build your equity position. The second thing is, your house may be really worth so much more than you thought. Get some suggestions before carrying this out. The amount of times I've met clients that have sold their family home of 20 years simply to discover I could of helped them keep it; unfortunately this happens all too often

When it comes to Bankruptcy and houses, another major consideration is ownership, in most cases houses are acquired in joint names. Simply put a couple may be a house 50/50 using both incomes to make the payments. If one party declares bankruptcy and the other party doesn't, the equity is only factored on the 50 % of the property.

When it comes to Bankruptcy, this is just one of possibly hundreds of scenarios that are possible when it comes down to the family home. Bear in mind the non-bankrupt party can buy the bankrupt's part of the home in bankruptcy also. I should repeat this but get some information on this area of Bankruptcy because it is very tricky and each and every case is different.

If you need to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Advice Gold Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/GoldCoast.

Bankruptcy in Gold Coast - Who exactly do I speak to?

Should I talk with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody knows your financial situation well in Gold Coast, It's going to be your accountant. However, the short answer is a resounding No! It's not that your accountant does not have your best interests at heart when it comes to Bankruptcy, it's that his specialization lie in helping you save you money at tax time, minimizing your tax liability and lodging your BAS.

Most accounting degrees will devote very little to no time on insolvency, it's generally performed as a post graduate speciality program for those who wish to work in the field. Unless your accountant is an insolvency specialist, he would not know that a lot about the implications of Bankruptcy, I can guarantee you insolvency specialists know much about tax returns or BAS in. If you do manage to find an insolvency accounting firm in Gold Coast, they often tend to be large firms with very nice office spaces who charge accordingly.

Should I speak to my Solicitor about Bankruptcy?

No! You can speak with your solicitor in Gold Coast but more than likely it won't do you much good. Solicitors are really good at carrying out things lawyers do, like assisting you do your Will and buying your house and keeping you out of court if you're lucky. When it concerns Bankruptcy, the specialists in Gold Coast typically have either a legal or accounting qualifications, and the main reason for that is simply that you can't enrol in the post graduate study to become a qualified insolvency practitioner until you have a law or accounting degree.

Just as there are a small number of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you locate one you will pay a sizeable price for their expertise.

Should I speak with a financial counsellor about Bankruptcy?

Yes! There are plenty of financial counselling services to help you through this, they have no hidden agendas and they're a great option for helping you analyze your situation when it comes to Bankruptcy. If you end up stressing out constantly, not sleeping, not eating or over-eating and thinking about money pressures all the time, then get some help.

There are also charitable organizations around Gold Coast like Lifeline that offer a wonderful service. They will be a sounding board if you just need a person to discuss with you what your choices are. Don't let your financial problem destroy your life - in the end it's just money.

If you would like to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Advice Gold Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Gold Coast .

Bankruptcy in Gold Coast - Will I lose my business if I go bankrupt?

When people in Gold Coast come to me planning to speak about Bankruptcy, they are constantly packed with questions. The internet has lots of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make things clearer. One of the very most universal problems is 'Will I lose my business if I declare bankruptcy?' The concise answer is no. If you are a manager of a business any shape or size you can keep your business if you wish to. In Gold Coast, businesses that become insolvent have a few options just like liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complicated area so get some reliable advice on this if you have a business. Generally speaking, the debts in a business and personal debts go together when a business owner declares bankruptcy. There are some essential implications for directors of companies when it comes to Bankruptcy in Gold Coast: A bankrupt can not be a director of a company, so if you have a pty ltd company you will likely need to resign as a director soon after you're bankrupt.

A limitation that applies when you are generally bankrupt as a business owner is that you may be in your own business as a sole trader only. Generally there are things you have to reveal as an aspect of that but basically you can still run your company. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. Such as, if you run a building company, your license will be suspended once you're bankrupt and as a consequence you can not trade without that license, so make sure you are asking the best questions when it concerns licenses and Bankruptcy in Gold Coast.

But if your business is not impacted directly by such issues, then you'll need to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not rack up heaps of debt in your business, then go bankrupt and after that open the doors the next day like virtually nothing had happened. There are laws in place to avoid what is called phoenix companies popping up out of the ashes of an old company.

Having said that, it's just an issue of speaking to the best people about Bankruptcy. In this circumstance you may think you need a liquidator for your company, and you may be right, but keep that in mind every liquidator is different and have their own motives. Liquidators make money from your liquidation - heaps of money - so what advice do you believe you will get?

When it comes to Bankruptcy, I consider that giving generic advice in this area is possibly risky as it can have very significant implications for directors and business owners. This is because it is just one of those cases where what the right advice for one business owner is the incorrect advice for the other. There are some fundamentals however, that you may benefit from. There is no limit to the size of the business you run though you are bankrupt. You can employ staff. You can constantly deal with your vendors under certain conditions, the main one being you will need to meet the payment terms agreed upon.

So when it comes to Bankruptcy, don't get overly confused about what you can and can't do as a business owner, just get the best advice ... If you want to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to consult Bankruptcy Advice Gold Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Gold Coast .

Bankruptcy in Gold Coast - does it matter if it is voluntary?

When it comes to Bankruptcy Gold Coast, normally people aren't aware that there may be both voluntary, and involuntary bankruptcy - both have unique methods and policies.

Involuntary bankruptcy arises when somebody you owe money to applies to the court to declare you bankrupt. Normally when you get one of these types of notices, you have normally 21 days to pay all the debt. If you do not, then the creditor returns to the court and asks the court to issue a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the paperwork in and after that you are bankrupt.

You can contest a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to stop it going to the next level. Other than the way you became bankrupt there is in fact no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're managed to in the exact same way.

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this method is incredible. If you think you are in all likelihood to be made bankrupt by someone, get some guidance and act on that advice. Generally I've found it's always better to know what you can and can't do before you have someone bankrupt you. Once you are bankrupt, it's usually far too late.

Voluntary Bankruptcy

On the other hand, when it comes to Bankruptcy, sometimes there are moments that it is the most ideal option. So you may have to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for every person of course, but usually I find that one way you could work it out is to figure out just how long it will take you to pay each of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may serve to help you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who came to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the level she was paying her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can really help you think this through. If you move house and forget to pay your $30 phone bill for 6 months more, it's very likely the phone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file seriously damaged for that period of time - and all of this will impact how you need to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unscrupulous. The punishment doesn't seem to equal the crime in my book. So if you currently have defaults on your credit report for 5 years, keep in mind that bankruptcy is on your credit file for a total 7 years then its wiped off completely.

So if your credit rating is a big aspect in trying to decide whether to take part in a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest difference is that with a DA or PIA you repay the money and nevertheless have it on your file for 7 years.

Bankruptcy

I have mentioned the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element more people are afraid of when they come to me to review their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the provisions are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all finished with no strings attached. Compared with countries like the United States, our bankruptcy laws are very reasonable.

I don't pretend to know why that is but a couple of hundred years ago debtors went to prison. These days I suppose the government finds that the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which costs the taxpayer anyway.

Bankruptcy wipes every one of your debts including ATO debts with the exception of a few things:.

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not actually insured.

There is a lot more that can be said about doing this and Bankruptcy in general but the objective of this blog was to help you decide between a few readily available options. When getting some advice, bear in mind that there are always options when it involves Bankruptcy in Gold Coast, so do some legwork, and Good luck!

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

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.

Bankruptcy in Gold Coast - Are you going to get bitten?

When people in Gold Coast ask me about Bankruptcy, I tell them the classic Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to see one last sunset before he passes away. The boy was hesitant, but the rattlesnake pledged not to bite him in exchange for the ride. They travelled together only for the snake to eventually attack the boy despite his assurance not to do so. The snake's answer was 'You knew what I was when you picked me up.

Receiving the right financial advice in Gold Coast when it relates to Bankruptcy is a whole lot like that little boy's experience, laden with risk and danger, and generally skewed for the benefit of the individual supplying the advice. In most cases you'll get bitten except if you know what you've picked up before you move forward (avoid the rattlesnakes). I discovered the problem with receiving financial advice as a teenager, and it has been necessary to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were pretty high and investing your money was quite profitable. I spent time researching several investment options, and I went to visit a few financial advisors. It was clear that they had more money than I did: they had great suits and plush offices, they all appeared to exude confidence and have all the answers. What struck me was that they all had an extremely different idea of what I should do. This confused me so much that it put me off the entire idea of selecting any of them.

I'm sure currently you have read more than enough on the internet to be totally confused about Bankruptcy and what to do. It would probably be easier for me to help you learn about the nature of the financial snakes you could be grasping while you are trying to get to the bottom of your financial troubles in Gold Coast. In essence, you need to try and comprehend what your overarching alternatives are, do your very own research into where to proceed with your strategy for Bankruptcy, and after that approach just what you feel is best in Gold Coast for your needs. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may appear like the go-to option when you appear to be in trouble. But there certainly is only so much help they can give on this matter. There are absolutely specialist legal advisors in bankruptcy, but their expertise includes a hefty price.

Another choice you may think of is your accountant - they are incredibly useful and vital to the task of running your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you any more.

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and virtually all you have to figure out when it comes to Bankruptcy.

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 Advice Gold Coast on 1300 879 867, or visit our website: bankruptcy-advice.com.au/GoldCoast .

Bankruptcy in Gold Coast - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you understand how much Bankruptcy in Gold Coast is changing? The Australian Government at the end of 2015 submitted some innate changes to the Bankruptcy Laws in Australia. Among the most significant of these is the length of time that a person is bankrupt for. Right now, there is a minimum amount of time that you must remain bankrupt, but, this 3 year period may in fact be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be quite important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 proposed that "the proposed changes to ease the burden of bankruptcy laws didn't go far enough and the government should adopt US-style laws to protect the family home".

These shifts to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that protecting family assets was very important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws put off investors from supporting start-ups, and therefore mentoring had been "driven out of the system".

"They naturally find it very intimidating themselves personally and with their assets at risk in a risky early-stage deal, but with their own money in the deal and a lightened-up provision I think we 'd probably see more willingness. It could be more important than the money.".

Fraudulent Behavior.

The issue surrounding this Bankruptcy issue in Gold Coast that some come up with is that this change will only motivate fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to maltreatment of the bankruptcy system. We have looked at the minimum, but on the other side of the problem, The government is not recommending to change the maximum term of 8 years if it deems a bankrupt has operated in an unethical or fraudulent way, and there are no recommendations to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Gold Coast, I have a fair share of practical experience when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Gold Coast I have never struck someone abusing the system or acting in a careless way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur look at the very formidable task of bankruptcy, not once have I perceived they are happy about it. The ordinary small business owner or entrepreneur in Gold Coast does not start out taking enormous financial risks with the intention to fail. The media really loves citing the apparent misuse that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These recommended changes will be good for often the best and brightest in Gold Coast not get kicked out of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, employers keeping this country going.

Certainly there is a fine line with exactly what the government is trying to do here, because they are trying to balance helping individuals who have made decisions out of their control, and deterring people from making problems that land them in trouble and consequently an issue of Bankruptcy. However you likewise don't want to destroy the experience and knowledge that business owners have. You surely don't want to shatter people simply because they have had a genuine failure in a large or small start-up venture that has not panned out.

At the major end of town large well-known companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of insolvency were cut down because directors are worried they'll be personally responsible in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' modifications for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I cannot imagine, that these improvements will be harmful to Australia's economy, actually these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health field because the emotional cost of bankruptcy is substantial. When it comes to Bankruptcy in Gold Coast not a day passes where I don't hear the tragic stories of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you are in need of some help with your debts in Gold Coast or are just considering Bankruptcy, don't hesitate to phone us here at Bankruptcy Advice Gold Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/goldcoast