Are your personal or financials obligations getting out of control?

Exactly what is a Personal Insolvency Agreement?

This is an adaptable agreement amongst you and your lenders. It is managed through a trustee who controls what you have to pay out and when you have to pay. Once those circumstances have actually been met you are generally then free to begin again with a new beginning.

What is a Debt Agreement?

A debt agreement permits a debtor to take part in an arrangement with their lenders to repay their loans without being made bankrupt.

You cannot enter into a Debt Agreement if you have actually been bankrupt, or if you are currently already in a debt agreement. Also keep in mind that there are additionally income restrictions, as well as restrictions on property value and unsecured debt value. If you wish to know more feel free to contact us on 1300 818 575.

How do you Choose?

Ultimately it is up to you, but don’t be fooled by certain companies because many of them have a strong bias! The main reason you find loads of expensive commercials on the TV in the Gold Coast area inviting you to go for one of these alternatives is that there is lots of cash in it for the agencies that provide them. You will see (if you haven’t already) that each and every business has the tendency to give (biased) advice depending on the product that they offer. For instance, Debt Agreement Companies ridicule bankruptcy companies as a way of trying to drive up their own business. It is rather common across the industry, so ensure you don’t get sucked in. And nor should this website be the only thing you read! We try to give unbiased advice, but please do your research across a range of sources to find what approach is going to be best for you!

Should I look at a Debt Consolidation Loan?

There are sometimes the very exceptional conditions where a debt consolidation loan is the best idea. Usually the matter with them is that all it is really doing is wrapping 5-15 various debts into one sizable debt. If you are fighting to pay off all your different loans now, then why do you presume it will be amazingly easier to have one massive bill? 9 times out of 10 it is just not going to make it easier. Just to make all of it worse you usually will have to pay up front for the ‘pleasure’ of this choice. If you wish to get some clarification or more information on this, then just simply contact us on 1300 818 575 or go and download ‘The Big 5’ e-Book.

Will the bank let me keep my house even when I’m a bankrupt?

Why might the bank want bankrupt customers? Wouldn’t they need to sell your house and not take the risk? Take note – the bank that has generously offered you the money for your house is making good money each month in interest from you, month in and month out. So long as you keep up to date with your monthly payments then the bank wants you in there at all costs. Nonetheless it is generally not the bank’s call – if a trustee concludes that there is ample equity in your house the trustee will compel you and the bank to sell your house.

How is equity determined?

Many people are not quite clear about what exactly equity is, and how it is calculated– but it is truly vital to determine given that if you get it, it can mean the difference between keeping and losing your home or apartment. There are a few factors you will need to know here. First and foremost, your gut reaction or expectation about the true value of the property is probably far too generous. Many people believe their home is worth much more than it really is.

Secondly, when you declare bankruptcy the trustee may question how you determined your value for the home. In many cases they will request more detail about your valuation, maybe a rates notice or a real estate agency’s assessment or a registered valuation. An uncomplicated tactic would certainly be to look on www.realestate.com.au then click on the ‘Sold’ tab on that website and look for the latest house sales in your community or area. This may help you get some idea of the reality of the market right now. Keep in mind, the valuation is based upon a quick sale not a skillful real estate agent’s promotion and marketing campaign. So If you really want a good idea, I would likely suggest getting a valuer and telling them to give you 2 values for the house, one as a standard sale, and the other as a ‘quick sale’. This will give you a far better awareness for your home’s worth. Recognizing this step is crucial, so get some advice before going forward, call us on 1300 818 575.

What if my home has too much Equity What could I do?

If your property has a lot of equity and you are nevertheless drowning in debt, there are still various options readily available to you– it might be complicated, however the necessary step is to speak with a professional to try and get ahead of it. Actually, this concerns vehicles or other assets you may have as well. What you can not afford to do is assume that everything will be ok. It is the bankruptcy trustee’s job to sell whatever assets you have when you file for bankruptcy and put that money towards your debts. Getting this wrong will be dire! Before you take your next step get some advice. We provide a free, initial consultation; just call us today on 1300 818 575.

Who will hear of my bankruptcy?

There are four groups of people that will learn that you are bankrupt.

1. Individuals that you tell
2. Your creditors or people you owe money to
3. People that see your credit file while you’re bankrupt. However, the only way this will happen is if you sign a privacy form for them to access your credit history. You only ever do this when you request a loan.
4. You will be shown on the National Insolvency Index online somewhere. But this is not too big a problem because it is hard to find and people have to pay to see if someone is bankrupt on it.

At Bankruptcy Experts Gold Coast, we are fully conscious that there is still a stigma connected to bankruptcy. We understand this concern and we can help to guarantee that if you declare yourself bankrupt that you don’t need to go to court, get your name in the papers or be publicly made out to be a criminal or some type of failure. We can help ensure that bankruptcy is fast and easy. In fact, the whole process will only take a few days. It makes it possible for the common person to get away from debt and on with their lives. For more detailed information about bankruptcy and your job, download ‘The Big 5’ e-book.

Bankruptcy and Income

First of all, it is important to know that changes are relating to the world of bankruptcy. If you must know what is happening then focus now. Since March 2016 there have been alterations to the Income Threshold amounts. This shows that there are modifications to just how much money you can keep when bankrupt. This is your net income after tax and child support (if applicable) are deducted. If you’re in a business when bankrupt then, of course, it’s also net (after tax) of business spending, which is typically calculated annually.

Your net income may be moderated to take into consideration things like salary sacrifice and considerable superannuation payments etc. Your net income might also include more unusual costs acquired as a result of being employed. As an example, if you are subjected to an uncommonly high amount of travel charges to get to and from your job this can sometimes also be taken into consideration. Your bankruptcy trustee must ascertain your real net income, based on the bankruptcy rules.

The income threshold figures are also per person and are set up by the Government every March and September to permit the movement in the cost of living.

Who is considered a dependent?

This could be anybody, of any age, that lives with you and earns under $3,343 per year. If, in the case you have a young child or children that you pay child support for and they do not live with you full-time, then you can not claim these children as dependents.

Can I forfeit my small business if I go bankrupt?

The straightforward answer is no, you don’t have to but you do need to get the appropriate guidance. Company insolvency laws are very involved and you should tread cautiously if you wish to continue to be self-employed.

You may actually recognise that you can no longer be the director of a Pty Ltd Company if you are bankrupt. Even so, that does not definitely mean you can’t run your very own business and employ staff etc

Should I put my business into liquidation?

Among the main reasons you may wish to consider liquidation instead of bankruptcy is due to the fact that if you liquidate your company, it doesn’t inevitably mean you need to go bankrupt. In Australia, companies that become insolvent have a few possibilities, just like liquidation, voluntary administration etc. If you need to know more call us on 1300 818 575.

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

It could be. There are factors to consider when and if you declare bankruptcy as a business owner. You can not run up heaps of debt in your company, then go bankrupt then open the doors the next day like absolutely nothing has taken place. There are laws in place to prevent these ‘Phoenix companies’ rising out of the ashes of an old company. Don’t get too stressed about what you can and can’t do as a company owner; just get the right advice by calling Bankruptcy Experts Gold Coast today on 1300 818 575.