If you live in the Emerald region and you are having problem with your Personal or Business Debts?
Then give Bankruptcy Experts Emerald a call. If your debts are out of control, then maybe the idea of bankruptcy has gone through your mind, and now you have finally taken the next and most challenging step identifying whether or not bankruptcy is appropriate for you. Just the thought of it is devastating enough having it become a fact. We understand that there is a tremendous sense of failure in this particular process. Maybe you are feeling entraped and like you have no options.
You Can Be 100 % Debt Free!
Can you think of a future devoid of creditors calling and enjoying the mail again. There are a few things you should know before you make that very challenging decision. First of all, the sooner you act the more alternatives you will have.
5 Questions you must address before you file for bankruptcy.
Secondly, there are 5 significant questions you must have an answer to before you file for bankruptcy, if you would like to know what they are feel free to download the free-Book on the right hand side of this web page it will explore these questions specifically and give you assurance that you are doing the right thing.
Is declaring bankruptcy my only option?
No! There are several alternatives available to you. Below is a graph summarizing the advantages and disadvantages of various debt solutions, this chart is by no means the entire story but it will permit you to make a well informed decision.
What is a Personal Insolvency Agreement?
This is versatile agreement between you and your creditor. It is handled through a trustee who carries out to just how much you have to pay and when etc. Once those conditions have been met you are then free to start again with a fresh start.
Why you may wish 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 handled
- Lower legal costs associated with court proceedings
Cons – Personal Insolvency Agreements
- You are not free until you have paid debt
- It may take many years to pay off the debt
- It still has an effect on your credit report for 7 years the exact same as bankruptcy
- You can not be a company director until the debt is paid off
- You are required to meet in person your creditor face to face
- Your details will be published in a local newspaper.
What is a Debt Agreement?
A debt agreement allows a debtor to enter into 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 wish to know more please call 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 essential assets.
Cons – Debt Agreement.
- There is an upfront charge to start off.
- You need to be approved. If you don’t earn enough you will be declined.
- If you don’t make your repayments the agreement could be terminated 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 companies say Debt Agreements or Personal Insolvency Agreements are the way to eliminate my debts?
The reason you find lots of expensive commercials on the television in the Emerald area inviting you to go for one of these alternatives is there is plenty of cash in it for the companies that provide to them. You will notice if you haven’t already that every company tends to give (biased) advice according to the solution that they offer. For instance Debt Agreement Companies ridicule bankruptcy companies and so it goes with much of the financial services industry.
Should I think about a Debt Consolidation Loan?
There is the very occasional instances where a debt consolidation loan is the way to go. Ordinarily however the issue with them is all it is really doing is bundling 5-15 various loans into one huge 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 even worse you usually have to pay up front for the luxury of this alternative.
If you want to get some advice on this simply contact us on 1300 795 575 or go and download “The Big 5” e-Book.
BANKRUPTCY AND THE FAMILY HOME
If I go bankrupt can I keep my home?
Generally the answer is yes. If this is a major concern for you then the best way to get the solution is to contact us here at Bankruptcy Experts Emerald on 1300 795 575 and once we have understood your situation we can give you a clear picture over the phone.
Virtually everyone is emotionally connected to their home, its where the kids have grown, its where you enjoy life on a day to day basis. People commonly think its an inevitable repercussion of bankruptcy and consequently they pressure themselves to the brink of madness to not lose the family home.
Will the bank let me keep my house despite the fact that I’m a bankrupt?
Why you might ask would the bank want bankrupt customers wouldn’t they wish to sell your house and not take the chance? The bank that has generously lent you the money for your house is making good money every month in interest out of you, day in and day out, as long as you keep up 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 home the trustee will require you and the bank to sell the house.
What factors determine if I will lose my house?
If you are up to date with your payments then the biggest issue is equity. The trustee has a responsibility to gather as much money to help pay your bills once you go bankrupt. Equity is the trick 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 pay back your debt, so the trustee will sell your house repay the debt and give you whatever remains.
How is equity determined?
Usually a registered valuer from the Emerald area is the most effective and safest way to determine your current equity position, before you race out and get the local real estate agent to give you a micky mouse evaluation phone us for how to go about this process so that you can have assurance 1300 795 575. Or for a more substantial explanation about how your home will be considered do not hesitate to download “The Big 5” e-book.
Suppose my partners name is on the house loan?
Another major issue is possession, oftentimes houses are purchased in joint names. In other words a couple may have bought a house 50/50 using both incomes to make the repayments. If one party declares bankruptcy and the other party doesn’t, the equity is only calculated on the 50 % of the house.
So basically if you have a house in joint names and your total equity position is $100,000 then your actual equity is half of that $50,000.
It seems like I have very few options when if comes to my house?
No not really there are many options available to you when it comes to your house or some other asset when declaring bankruptcy. You will need to get the right advice about this however, getting it wrong could be disastrous. If you have questions feel free to phone us about your house on 1300 795 575.
BANKRUPTCY AND EMPLOYMENT
Will my employer be notified?
Who will learn about my bankruptcy?
There are four groups of people that will be told 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 release 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 it online somewhere, its hard to find and you need to pay to see if someone is bankrupt on it.
At Bankruptcy Experts Emerald we are completely mindful that there is still a stigma about bankruptcy we recognize this concern in fact 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 of 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 go bankrupt?
The answer to the question is maybe. The trouble with some professions 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.
What I could suggest is that you do your own prep work here, do the research and go through that process first prior to filing for bankruptcy because that may help you choose. Check if your specialty is on the list below. If it is, I ‘d talk to them personally and describe your situation. Several affiliations won’t have a problem with your bankruptcy provided that it wasn’t accompanied by shady or questionable behavior.
If you think you employment may be affected by your possible bankruptcy phone us here at Bankruptcy Experts Emerald on 1300 795 575.
BANKRUPTCY AND INCOME
Will my income be impacted if I go bankrupt?
The answer to the question is could be. The first thing you have to know about going bankrupt is there is no limit on how much you can earn. However, I will indicate that your income is a serious factor when wading whether you need to go bankrupt.
The first thing you have to know is just 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 each year. A dependant is someone who resides with you and earns less than $3,124 annually (regardless of their age).
You can apply for a hardship variation that raises the threshold amount, if you have expenses such as medical, child care, substantial travel to and from work, or a situation where your spouse used to work but is no longer able to contribute to the household income.
Child support is always considered 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 annually and you have no dependants residing with you then your revised net income limit would be $55,332.10.
If you need more information and facts about your income thresholds go forward and download “The Big 5” E-book. there are some cases because of income that it is not an economically viable option to file for bankruptcy because you earn too much in comparison to the debt you have.
Just how much of my pay can I retain?
The Threshold Amount that you can keep is basically your net income after tax and child support (if applicable) is deducted. If you’re in business whilst bankrupt, then of course it’s also after net (after tax) business expenses.
Your net income could be adjusted to take into account things like salary sacrifice and excessive superannuation payments etc. Your bankruptcy trustee has to determine your real net income according to the bankruptcy rules.
The income threshold figures are also per person, and are adjusted by the Government every March and September to allow for the movements in the cost of living.
With no dependants your net income can be $52,543.40 net per annum, i.e. that’s an average of $1,010.45 net per week take home pay. This is your spending money. It’s all yours. It’s what you can keep, and so anything over that amount is split 50/50 with your bankruptcy trustee to be paid to your creditors.
With 1 dependant your net income can be $62,001.21 net per annum, i.e. an average of $1,192.33 net per week take home pay. This is your spending money. It’s all yours, it’s what you can keep, and so anything over that is split 50/50 with your bankruptcy trustee.
With 2 dependants your net income can be $66,730.12 net per annum, i.e. an average of $1,283.27 net per week take home pay. This is your spending money. It’s all yours, it’s what you can keep, and so anything over that is split 50/50 with your bankruptcy trustee.
With 3 dependants your net income can be $69,357.29 net per annum, i.e. an average of $1,333.79 net per week take home pay. This is your spending money. It’s all yours, it’s what you can keep, and so anything over that is split 50/50 with your bankruptcy trustee.
With 4 dependants your net income can be $70,408.16 net per annum, i.e. an average of $1,354.00 net per week take home pay. This is your spending money. It’s all yours, it’s what you can keep, and so anything over that is split 50/50 with your bankruptcy trustee.
With more than 4 dependants your net income can be $71,459.02 net per annum, i.e. an average of $1,374.21 net per week take home pay. This is your spending money. It’s all yours, it’s what you can keep, and so anything over that is split 50/50 with your trustee.
If you believe that your condition is more challenging, then please get competent advice. If you have a particular income question just call us on 1300 795 575.
What can my partner earn if I go bankrupt?
There is no limit to what your spouse can earn. Your partner 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 $939.23 net. A practical 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 $3,197 annually.
BANKRUPTCY AND SELF EMPLOYMENT
Will I lose my company if I go bankrupt?
The simple answer is you don’t need to but you do will need to get the right assistance. Company insolvency laws are very complicated and you will need to tread carefully if you would like to continue to be self-employed.
You may already recognize that you can no longer be the director of a Pty Ltd Company if you are bankrupt, nevertheless 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 fresh start.
Should I put my company into liquidation?
Just one of the main reasons you may intend to consider liquidation as opposed to bankruptcy is because if you liquidate your company, it doesn’t inevitably mean you need 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 about liquidation and company re-structuring, go to the next page of this website, as there is much more about it there and or download “The Big 5” e-Book. Keep in mind, it’s the individuals who declare bankruptcy, not businesses.
This is a complicated area, so get some skilled advice on this one if you have a company. Normally speaking, the debts in a business and personal debts go hand in hand when a company owner goes bankrupt.
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 influences their capability 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 consequently you can no longer trade without that license.
Isn’t it illegal to run a similar business after bankruptcy?
It can be. There are things to consider when and if you declare bankruptcy as a business owner: you can not rack up heaps of debt in your business, then declare bankruptcy 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 worried about what you can and can’t do as a business owner; just get the correct advice and call Bankruptcy Experts Emerald today 1300 795 575.