Bankruptcy

If you live in the Rockhampton area and you are struggling with your Personal or Business Debts?

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Then give Bankruptcy Experts Rockhampton a call. If your debts are out of control, then maybe the notion of bankruptcy has gone through your mind, and now you have finally taken the next and most challenging step discovering whether or not bankruptcy is right for you. Just the notion of it is devastating enough having it become a reality. We understand that there is an overwhelming sense of failure within this process. Maybe you are feeling entraped and like you have no choices.

You Can Be 100 % Debt Free!

Can you imagine a future free from creditors calling and enjoying the mail again. There are a handful of things you must know before you make that very challenging decision. First of all, the sooner you act the more choices you will have.

5 Questions you must settle in your mind before you go bankrupt.

Second of all, there are 5 essential questions you must have an answer to before you declare bankruptcy, if you would like to know what they are feel free to download the free e-book on the right hand side of this web page it will address these questions thoroughly and give you assurance that you are doing the right thing.

BANKRUPTCY OPTIONS

Is Bankruptcy my only choice?

No! There are several options available to you. Below is a chart summarizing the advantages and disadvantages of various debt options, this chart is by no means comprehensive but it will allow you to make an informed decision.

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What is a Personal Insolvency Agreement?

This is versatile agreement between you and your creditor. It is taken care of through a trustee who carries out to how much you have to pay and when etc. Once those conditions have been met you are then free to start again with a new beginning.

Why you may want to consider a Personal Insolvency Agreement

Pros – Personal Insolvency Agreements

  • Avoid bankruptcy
  • Possibly limit liability to make income contributions
  • You repay 30 to 70 cents in the dollar to your creditors
  • It could be a very a quick process.
  • May have the ability to keep important assets.
  • The debtors assets are independently managed
  • Lower legal costs connected with court proceedings

Cons – Personal Insolvency Agreements

  • You are not free until you have paid debt
  • It may take many years to clear up the debt
  • It still impairs your credit score for 7 years the exact same as bankruptcy
  • You can not be a company director until the debt is paid
  • You are required to meet in person your creditor one-on-one
  • Your details will be published in a local newspaper.

What is a Debt Agreement?

A debt agreement allows a debtor to participate in an arrangement with their creditors to satisfy their debts without being made bankrupt.

Can I Enter into a Debt Agreement?

You can’t enter into a Debt Agreement if you have been bankrupt, or you are currently already in a debt agreement. There are also income restrictions, property value and unsecured debt value restrictions, If you would like to know more please contact us on 1300 795 575

Pros – Debt Agreement

  • Avoid Bankruptcy
  • Stops creditors – can not take any further actions to recoop their debts;.
  • You may get to keep important assets.

Cons – Debt Agreement.

  • There is an upfront charge to commence.
  • You have to be approved. If you don’t earn enough you will be rejected.
  • If you don’t make your repayments the agreement will be canceled then the creditors can resume collection of their debts;.
  • The debtor details will turn up on the National Personal Insolvency.
  • Index (NPII) from the date that the debt agreement proposal was approved by ITSA.
  • It also affects your credit rating for 7 years the same as bankruptcy.
  • Nothing changes with secured creditors rights they may repossess if the debtor is in default.

Why do some firms say Debt Agreements or Personal Insolvency Agreements are the way to eliminate my debts?

The reason you find plenty of expensive commercials on the TV in the Rockhampton region urging you to go for one of these options is there is plenty of cash in it for the firms that provide to them. You will notice if you haven’t already that every firm has the tendency to give (biased) advice according to the service that they offer. For instance Debt Agreement Companies ridicule bankruptcy companies and so it goes with much of the financial services industry.

Should I take into consideration a Debt Consolidation Loan?

There is the very occasional circumstances where a debt consolidation loan is the right option. Normally however the trouble with them is all it is really doing is bundling 5-15 various debts into one great big debt. If you are straining to pay all your various loans now why do you think it will be magically easier to have one enormous debt. Just to make it all worse you generally have to pay up front for the luxury of this option.

If you wish to get some clarification on this simply call us on 1300 795 575 or go and download “The Big 5” e-Book.

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BANKRUPTCY AND THE FAMILY HOME

If I file for bankruptcy can I keep my home?

Generally the answer is yes. If this is a significant worry for you then the best way to get the answer is to contact us here at Bankruptcy Experts Rockhampton on 1300 795 575 and once we have understood your situation we can give you a crystal clear picture over the phone.

Just about everyone is emotionally connected to their home, its where the kids have grown up, its where you enjoy life on a day to day basis. People normally think its an inevitable repercussion of bankruptcy and consequently they push themselves to the brink of insanity to not lose the family home.

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

Why you may ask would the bank want bankrupt customers wouldn’t they want to sell your house and not take the risk? The bank that has kindly lent you the money for your house is making good money every month in interest out of you, month in month out, as long as you maintain to date with your repayments then the bank wants you in there at all costs. Ultimately however it’s not the bank’s call if the trustee determines that there is plenty of equity in your house the trustee will force you and the bank to sell the house.

What things determine if I will lose my home?

If you are up to date with your repayments then the greatest issue is equity. The trustee has a duty to gather as much money to help pay your bills once you go bankrupt. Equity is the key here. If you have $300,000 equity in your house and you have $100,000 worth of debt and no other way to pay the debt then the trustee sees you equity as a way to repay your debt, so the trustee will sell your house pay back the debt and give you whatever is left over.

How is equity determined?

Typically a registered valuer from the Rockhampton area is the most effective and safest way to identify your current equity position, before you race out and get the local real estate agent to give you a Mickey Mouse evaluation call us for how to go about this process so that you can have assurance 1300 795 575. Or for a greater illustration about how your house will be considered feel free to download “The Big 5” e-book.

What if my partners name is on the house loan?

Another notable factor is ownership, oftentimes houses are bought in joint names. In other words a couple may have acquired a house 50/50 using both salaries to make the monthly payments. If one partner files for bankruptcy and the other party doesn’t, the equity is only calculated on the 50 % of the home.

So basically if you have a home in joint names and your total equity position is $100,000 then your actual equity is fifty percent of that $50,000.

It seems like I have very few choices when if comes to my home?

No not really there are a number of choices accessible to you when it comes to your house or any other asset when going bankrupt. You need to get the right assistance about this however, getting it wrong could be deadly. If you have questions don’t hesitate to call us about your house on 1300 795 575.

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BANKRUPTCY AND EMPLOYMENT

Will my employer be advised?

No

Who will be informed of my bankruptcy?

There are 4 groups of people that will know that you are bankrupt. 1. Individuals you tell. 2. Your creditors or people you owe money to. 3. Individuals that see your credit file while your bankrupt. The only way that will happen is if you sign a privacy form for them to access your credit file. You only ever do this we you apply for a loan. 4. You will be listed on the National Insolvency Index it online somewhere, its hard to find and you have to pay to see if someone is bankrupt on it.

At Bankruptcy Experts Rockhampton we are completely conscious that there is still a stigma about bankruptcy we recognize this concern actually we can help make sure that if you declare yourself bankrupt you don’t have to go to court or get your name in the newspapers or be publicly made out to be a criminal. We can help ensure bankruptcy is easy and quick. In fact the whole process will only take a handful days. It makes it possible for ordinary people to get out of debt and on with their lives. For more detailed information about your job download “The Big 5” e-Book.

Will I lose my job if I file for bankruptcy?

The answer to the question is in some cases. The concern with some specialties isn’t that you can’t do the job any longer, it’s more an issue of professional bodies or associations that see bankruptcy in a dim light and can make things troublesome for you.

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What I could suggest is that you do your own homework here, do the homework and investigate that process first before filing for bankruptcy because that may help you decide. Check if your career is on the chart below. If it is, I ‘d talk to them personally and explain your situation. Some affiliations won’t have a problem with your bankruptcy as long as it wasn’t accompanied by shady or suspicious behavior.

If you think you employment may be impacted by your possible bankruptcy call us here at Bankruptcy Experts Rockhampton on 1300 795 575.

BANKRUPTCY AND INCOME

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Will my earnings be impacted if I go bankrupt?

The answer to the question is maybe. The first thing you ought to know about going bankrupt is there is no restriction on just how much you can earn. However, I will identify that your income is a major consideration when working through whether you need to declare bankruptcy.

The first thing you have to know is how much you can earn before you start paying back money to your creditors via your trustee (see graph below).

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

You can obtain a hardship variation that raises the threshold amount, if you have expenses such as medical, child care, considerable travel to and from work, or a scenario where your spouse used to work but is no longer able to contribute to the household income.

Child support is always taken into consideration 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 instance if you pay $5,000 child support every year and you have no dependants residing with you then your revised net income limit will be $55,332.10.

If you need more information and facts about your income thresholds go on and download “The Big 5” E-book. there are some cases because of income that it is not an economically viable option to declare bankruptcy because you earn way too much in comparison to the debt you have.

What is your money worth in 2016?

Developments are coming to the world of bankruptcy, if you need to know what is happening, then pay attention here. Since March 2016 there has definitely been changes to the Income Threshold Amounts. This means that there are changes to what money you can retain when bankrupt, this is basically your net income right after tax and child support (if applicable) is deducted. If you’re in business while bankrupt, then of course it’s also after net (after tax) business expenses, which is typically determined annually.

Your net income can be regulated to allow for things like salary sacrifice and high superannuation payments etc. Your net income can also allow more unusual costs incurred as a result of being employed, for example if you get an unusually high amount of travel expenses to get to and from your job this can sometimes also be taken into consideration. Your bankruptcy trustee must figure out your real net income according to the bankruptcy rules.

The income threshold numbers are also per person, and are changed by the Government each and every March and September to allow for the movements in the cost of living.

As of March 2016 the income thresholds are as follows;

With no dependents your net income can be $54,518.10 net per annum, i.e. that’s around $1,048.25 net every week take home pay. This is your spending money. It’s all yours. It’s what you can always keep, and so anything over that amount is partition 50/50 with your bankruptcy trustee to be paid out to your creditors.

With 1 dependent your net income can be $64,331.36 net per annum, i.e. an average of $1,237.14 net every week take home pay.

With 2 dependents your net income can be $69,237.99 net per annum, i.e. approximately $1,331.49 net per week take home pay.

With 3 dependents your net income can be $71,963.89 net per annum, i.e. about $1,383.92 net every week take home pay.

With 4 dependents your net income can be $73,054.25 net per annum, i.e. around $1,404.88 net each week take home pay.

With in excess of 4 dependents your net income can be $74,144.62 net per annum, i.e. about $1,425.85 net every week take home pay.

If you believe that your condition is more complex, then please get professional advice. If you have a particular income question just call us here at Bankruptcy Experts Rockhampton on 1300 795 575.

What can my partner earn if I go bankrupt?

There is no limit to what your spouse can earn. Your loved one can earn a million dollars and they will not be required to contribute to your debts.

What if my spouse/partner and I both have to go bankrupt?

If a husband and wife each declare bankruptcy, and say that they’ve got no dependants, then they can each earn $1,010.45 net. An easy way to understand it is the same income rules apply for each individual in the home.

Who is considered a dependent?

When it come to bankruptcy a dependent is anyone you support who earns less that $3,343 per year.

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BANKRUPTCY AND SELF EMPLOYMENT

Will I lose my business if I declare bankruptcy?

The simple answer is you don’t have to but you do need to get the right assistance. Corporate insolvency laws are very complicated and you have to tread carefully if you would like to continue to be self-employed.

You may already realize that you can no longer be the director of a Pty Ltd Company if you are bankrupt, even so that doesn’t automatically mean you can’t run your own business and employ staff etc.

What if my business has serious debts?

As a part of your bankruptcy we can help you remove your business debts so you can get a new beginning.

Should I put my company into liquidation?

Among the main reasons you may wish to consider liquidation instead of bankruptcy is because if you liquidate your company, it doesn’t automatically mean you need to declare bankruptcy. In Australia, businesses that become insolvent have a few choices, such as liquidation, voluntary administration and so on. If you would like to know more about liquidation and company re-structuring, visit the next page of this website, as there is a lot more about it there and or download “The Big 5” e-Book. Keep in mind, it’s the individuals who go bankrupt, not businesses.

This is a complex area, so get some professional advice on this one if you have a small business. Ordinarily speaking, the debts in a business and personal debts work together when a business owner declares bankruptcy.

What impact will bankruptcy have on my business?

A restriction that applies when you are bankrupt as a business owner is that you can be in your own business as a sole trader only. For some business owners, bankruptcy has an effect on their capacity to run the business because of the licensing issues discussed in chapter two. For example, if you run a building company, your license will be suspend once you’re bankrupt and therefore you can no longer trade without that license.

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

It could be. 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 then open the doors the next day like nothing has happened. There are laws in place to prevent what is called “phoenix companies” rising up out of the ashes of an old company.

Don’t get overly pressured about what you can and can’t do as a business owner; just get the right advice and call Bankruptcy Experts Rockhampton now 1300 795 575.

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