Bankruptcy in Bundaberg - Will my income be altered if I go bankrupt?

Bankruptcy Bundaberg is a intricate process, and you ought to make sure 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 regulation on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy.

The very first thing you need to understand 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 of money 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 make an application for a hardship variation that increases the threshold amount, if you have expenses in Bundaberg like medical, child care, significant travel to and from your job, or a situation where your partner used to work but is not able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, 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 thought about, for example if you give $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 involving income and what is or isn't regarded as income - if you're not exactly sure, it's best to get skilled 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 viable option.

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

If you feel like when it comes to Bankruptcy, your case is more intricate, then simply get expert advice in Bundaberg. I may seem like a broken record, but bear in mind that it's always a good idea to overcome these options before declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Bundaberg on 1300 795 575, or explore our website: www.bankruptcyexpertsBundaberg.com.au.

Bankruptcy in Bundaberg - Are you going to get bitten?

When people in Bundaberg ask me about Bankruptcy, I let them know the simple 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 view one last sunset before he dies. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They travelled together only for the snake to ultimately attack the boy despite his assurance not to do so. The snake's response was 'You knew what I was when you picked me up.

Receiving the right financial advice in Bundaberg when it concerns Bankruptcy is a whole lot like that little boy's encounter, fraught with risk and danger, and typically skewed for the benefit of the individual offering the advice. In most cases you'll get bitten unless you know what you've picked up long before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been essential 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 rather profitable. I spent some time researching numerous investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had nice suits and plush offices, they all appeared to exude confidence and have all the answers. What hit me was that they all had a really different idea of what I should do. This confused me so much that it put me off the entire idea of picking any of them.

I'm sure currently you have read enough on the internet to be totally baffled about Bankruptcy and exactly what to do. It would most likely be easier for me to help you comprehend the nature of the financial snakes you might be grasping while you are trying to get to the bottom of your financial troubles in Bundaberg. Essentially, you need to try and figure out what your overarching alternatives are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Bundaberg for your needs. Basically, you have 3 options for who to turn to.

The first option is a Solicitor - This may seem the go-to choice when you seem to be in trouble. But there is only so much support they can give on this matter. There are certainly specialist legal advisors in bankruptcy, but their experience comes along with a hefty price.

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

Your best choice? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and virtually all you should know when it comes to Bankruptcy.

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website:bankruptcyexpertsbundaberg.com.au,

Bankruptcy in Bundaberg - Choices, Choice, Choices

When it comes to Bankruptcy Bundaberg, there are a lot of choices that we get given depending on who we are, who we talk to, and exactly what has gone wrong. Among 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 Bundaberg, most of the information and facts you receive on this subject will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can promise you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for helping you wrap all of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but these people aren't doing it free of charge. Please don't misunderstand me: if you consider your financial issues in Bundaberg can possibly be solved by paying less interest, then go on and investigate the options. Even a little amount of interest saved over years rapidly adds up.

Typically I find if you read this blog you've undoubtedly tried to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is no good, and your credit file already has defaults on it so nobody will give you a loan, consolidated or otherwise,.

• By the time you work all of it out, you're so far down a hole that saving a tiny bit of interest simply won't make a lot of difference,.

• You've likely gotten to the stage where you've had more than enough, you're mentally worn down, you can't go on 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 Bundaberg, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Overall 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. Essentially this process is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they mediate a deal on your behalf. You can offer a lump sum settlement figure or enter into a payment plan, or perhaps you can offer them assets rather than cash. This may sound acceptable when it comes to the problems with Bankruptcy - that is up until you realize that one of the challenges with PIA's is that 75 % of the people you owe money to have to come to an understanding the deal. If they don't, your plan is rejected or has to be renegotiated.

Generally the people you owe money prefer all their money back in addition to interest. Sometimes they'll settle for under the amount you owe them - it's typically a percentage of the debt - but allow me to stress this part: 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 just 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 heard of creditors going 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 brilliant 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 Bundaberg aren't going to get that lucky!

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website:bankruptcyexpertsBundaberg.com.au.