Are your personal or business monetary debts getting out of control?

What exactly is a Personal Insolvency Agreement?

This is an adaptable arrangement involving you and your lenders. It is handled through a trustee who supervises the amount of money 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 makes it possible for a debtor to enter into an plan with their lenders to pay off their money troubles without being made bankrupt.

You cannot take part in 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 call 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 plenty of expensive commercials on the TV in the Joondalup area inviting you to go for one of these alternatives is that there is huge amounts of cash in it for the firms that provide them. You will see (if you haven’t already) that every single company has the tendency to give (biased) advice according to 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 pretty common across the industry, so make sure you don’t get deceived. 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 think about Debt Consolidation Loan?

There are sometimes the very exceptional conditions where a debt consolidation loan is the most ideal strategy. Usually the trouble with them is that all it is really doing is wrapping 5-15 different debts into one sizable debt. If you are battling to pay all your various loans now, then why do you think it will be magically simpler to have one substantial bill? 9 times out of 10 it is just not going to make it easier. Just to make all of it even worse you usually have to pay up front for the ‘ luxury’ of this choice. If you want to get some clarification or more information on this, then 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 though I’m a bankrupt?

Why would the bank want bankrupt customers? Wouldn’t they really want to sell your home and not take the risk? Take note – the bank that has generously offered you the cash for your house is making good money every month in interest from you, month in and month out. So long as you maintain up to date with your mortgage payments then the bank prefers you in there at all costs. Having said that it is usually not the bank’s call – if a trustee thinks that there is suitable equity in your house the trustee will force you and the bank to sell your house.

How is equity worked out?

Most people are not confident about exactly what equity is, or how it is determined– but it is definitely important to work out because if you understand, it can mean the difference between keeping and losing your house. There are a few factors you ought to understand here. First and foremost, your gut reaction or belief about the real worth of the property is possibly far too generous. The majority of people believe their house is worth more than it really is.

Secondly, when you file for bankruptcy the trustee may ask how you determined your value for the house. In some cases they will ask for more detail about your valuation, maybe a rates notice or a real estate agency’s assessment or a registered valuation. A simple tactic would certainly be to search www.realestate.com.au then click on the ‘Sold’ tab on that site and look for the latest house sales in your community or neighbourhood. This may help you get some concept of the reality of the marketplace right now. Keep in mind, the valuation is based on a quick sale not a skillful real estate agent’s advertising campaign. So If you actually want a good idea, I would advise getting a valuer and telling them to give you 2 values for your home, one as a typical sale, and the other as a ‘quick sale’. This will give you a far better awareness for your home’s worth. Knowing this step is vital, so get some advice before proceeding, call us on 1300 818 575.

Suppose my home has a lot of equity? What can I do?

If your house has a lot of equity and you are still drowning in debt, there are still some alternatives readily available to you– it might be complicated, but the crucial step is to talk to an expert to try and get ahead of it. Actually, this applies to cars 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 devastating! Before you take your next step get some advice. Our company provides a free, initial consultation; just call us today on 1300 818 575.

Who will find out about my bankruptcy?

There are four categories of people that will discover that you are bankrupt.

1. People that you tell
2. Your creditors or individuals you owe money to
3. Individuals that see your credit file whilst you’re bankrupt. However, the only way this will take place is if you sign a privacy form for them to gain access to your credit history. You only ever do this when you look for a loan.
4. You will be listed on the National Insolvency Index on the web somewhere. But this is not too big a problem because it is hard to locate and people have to pay to see if a person is bankrupt on it.

At Bankruptcy Experts Joondalup, we are completely mindful that there is nonetheless a stigma connected to bankruptcy. We recognize this worry and we can help to ensure that if you declare yourself bankrupt that you don’t have 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 entire process will only take a few days. It makes it possible for the common person to get out of 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 involving the world of bankruptcy. If you must know what is happening then focus now. Since March 2016 there have been modifications to the Income Threshold amounts. This signifies 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 removed. If you’re in a business when bankrupt then, of course, it’s also net (after tax) of business spending, which is commonly calculated annually.

Your net income may be governed to take into account things like salary sacrifice and significant superannuation payments etc. Your net income might also allow for more unusual costs sustained as a result of being employed. As an example, if you are subjected to an unusually high amount of travel charges to get to and from your job this can often also be taken into consideration. Your bankruptcy trustee will have to ascertain your real net income, based on the bankruptcy rules.

The income threshold numbers are also per person and are established by the Government each and every March and September to enable the movement in the cost of living.

Who is considered a dependent?

This might be any person, of any age, that resides with you and earns no more than $3,343 per year. If, in the case you have a young child or children that you give child support for and they do not live with you full-time, then you can not declare these children as dependents.

Will I lose my small business if I go bankrupt?

The simple answer is no, you do not have to but you do need to get the right guidance. Company insolvency laws are very involved and you should tread carefully 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 inevitably mean you can’t run your very own business and employ staff etc.

Should I put my company into liquidation?

Among the main reasons you might wish to think about liquidation as opposed to bankruptcy is due to the fact that 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, for instance, liquidation, voluntary administration etc. If you need to know more call us on 1300 818 575.

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

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