Bankruptcy in Rockhampton - Will my income be influenced if I go bankrupt?

Bankruptcy Rockhampton is a complex process, and you have to ensure you get the right advice. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you have to know about going bankrupt is there is no limitation on how much you can earn. However, I will say that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to learn about this area of Bankruptcy is the amount 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 quantity 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 apply for a hardship variation that raises the threshold amount, if you have costs in Rockhampton such as medical, child care, significant travel to and from work, or a circumstance 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 told 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 altered net income limit will be $55,332.10.

There are many more issues covering income and what is or isn't considered income - if you're not sure, it's recommended to get professional 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 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 just as long as that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your situation is more challenging, then just get specialist advice in Rockhampton. I may sound like a broken record, but keep in mind that it's always a good idea to work through these options prior to declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Rockhampton on 1300 795 575, or check out our website: bankruptcyexpertsRockhampton.com.au.

Bankruptcy in Rockhampton - Are you going to get bitten?

When people in Rockhampton ask me about Bankruptcy, I let them know the time-honored 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 dies. The boy was reluctant, but the rattlesnake pledged not to bite him in exchange for the ride. They travelled together only for the snake to ultimately bite the boy despite his vow not to do so. The snake's reply was 'You knew what I was when you picked me up.

Obtaining the right financial advice in Rockhampton when it relates to Bankruptcy is a great deal like that little boy's encounter, filled with risk and danger, and generally skewed for the benefit of the individual supplying the advice. In many cases you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I learned the problem with getting financial advice as a teenager, and it has been fundamental to Bankruptcy. I'd been working hard for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were rather 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 crystal clear that they had more money than I did: they had nice suits and plush offices, they all seemed to exude confidence and have all the answers. What struck me was that they all had an extremely different strategy of what I should do. This baffled me a lot that it put me off the entire idea of picking any of them.

I'm sure by now you have read enough on the internet to be totally unclear about Bankruptcy and just what to do. It would undoubtedly be easier for me to help you comprehend the nature of the financial snakes you might be grabbing while you are attempting to get to the bottom of your financial problems in Rockhampton. Essentially, you have to try and understand what your overarching alternatives are, do your own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Rockhampton for your requirements. Essentially, you have 3 options for who to turn to.

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

Another alternative 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 of Bankruptcy, your accountant won't be much help to you at all.

Your best choice? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you have to know when it comes to Bankruptcy.

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

Bankruptcy in Rockhampton - Choices, Choice, Choices

When it comes down to Bankruptcy Rockhampton, there are a bunch of options that we get given depending upon who we are, who we talk to, and just 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 Rockhampton, a lot of the help and advice you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, 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 simple way: charging you a fee for aiding you wrap every one of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but these guys won't be doing it for free. Please don't misunderstand me: if you think your financial problems in Rockhampton could be solved by paying less interest, then go ahead and look into the choices. Even a little amount of interest saved over years rapidly adds up.

Normally I find if you are reading this blog you've probably tried to consolidate your debts already and come to the following realisations like these:

• Your credit rating is no good, and your credit file definitely 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 small amount of interest just won't make a lot of difference,.

• You've likely arrived at the point where you've had enough, you're mentally drained, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.

Personal Insolvency Agreements

So when it comes to Bankruptcy in Rockhampton, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability 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 process is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys arrange 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 rather than cash. This might sound fine when it comes to the problems with Bankruptcy - that is up until you realise that one of the difficulties with PIA's is that 75 % of the people you owe money to must agree on 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 and also interest. Sometimes they'll opt for beneath 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 actually 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 decideded 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 choosing less 80 % on rare occasions, but that usually only occurs with a public company entering 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 clever 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 Rockhampton 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 contact Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website:bankruptcyexpertsRockhampton.com.au.