Is Bankruptcy Right for Me?
Bankruptcy is one of the hardest things anybody has to ever deal with. Making the best decision is difficult. That is why we have produced a free eBook – The Big Five – to help you make a fully informed decision. At Bankruptcy Experts Australia we recommend you do not move forward with bankruptcy until you have read this, and you have the answers to the 5 big bankruptcy questions.
Big 5 Questions
– Is going bankrupt right for me?
– Will I lose my job?
– How will my income be affected?
– Can I keep my house or car?
– Will I lose my business or can I still be self-employed?
If you are considering bankruptcy, being able to answer these questions is essential. When you have all this information then you will know exactly what will happen to your business and assets should you choose to file for bankruptcy. Do not hesitate to download our eBook for free and educate yourself today. Or, if your concerns are more complicated, call us at Bankruptcy Experts Australia directly on 1300 795 575.
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Is going bankrupt my only choice? No of course not you always have a choice, you might want to consider a debt consolidation loan. However, the most common option considered instead of bankruptcy is a Debt Agreement (Part IX). Study the graph to work out the relative advantages and disadvantages of Bankruptcy, Debt Agreements, and Personal Insolvency Agreements, so you can make an educated choice.
Why Do Some Business Say Debt Agreements or Personal Insolvency Agreements?
There is a reason some bankruptcy services spend a lot on TV commercials … there is a lot in it for them if you select them … In a desperate bid for your custom, things quickly develop into a cat fight, with one company turning against another. And everybody claims they are the best. We are not here to be competitive. Here at Bankruptcy Experts Australia we are here to educate you so you can choose for yourself.
Personal Insolvency Agreements
Should I Consider a
Debt Consolidation Loan?
A debt consolidation loan is in some cases the most suitable plan. What the plan does is to condense all the various loans into one, much larger loan. There may be a cost to consolidate the debts. One of the biggest issues to consider is your credit rating, typically people thinking about bankruptcy have a badly damaged credit rating so a debt consolidation loan is simply not an option.
Who Will Know About My Bankruptcy?
An individual’s personal privacy is a big deal when you ﬁle for bankruptcy. The days of your name being posted in the paper as a bankrupt are long gone. In fact, there are normally only four types of people who will know about your bankruptcy:
1.) The people you personally tell.
2.) Your creditors or the people you owe money to.
3.) People who request to access your credit ﬁle, such as when you apply for a loan. (this involves you giving them permission first), Applying for a loan is something you will not be doing for the 3 years you are bankrupt because no one will give you a loan while you are bankrupt.
4.) Anyone who looks you up on the National Insolvency Index (which people have to pay to access).
There is no need for you to worry, you are not a criminal and you have not failed. You are just someone who wants to put an end to debilitating debt and carry on with their lives. At Bankruptcy Experts Australia, we are here to help. Download our Free ‘The Big 5’ e-Book for in-depth information about insolvency and your employment or give us a call on 1300 795 575.
Suppose My House 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 options accessible to you. In fact, this applies also to vehicles or other assets you might have. In this scenario what you cannot afford to do is assume that everything will be okay. It is the bankruptcy trustee’s job to sell whatever assets you have when you declare bankruptcy and put that money towards your debts. Getting the wrong advice here could be disastrous! Before you take your next step get some assistance, at Bankruptcy Experts Australia we offer a free initial consultation, so call us today on 1300 795 575.
How Is Equity Determined?
This is the most important part of this procedure. Why? Put simply, if you get it wrong you are going to lose your home. There are a number of things you must understand here. First of all, your gut reaction or assumption about the true worth of your property is probably generous. Most people expect their home is worth much more than it actually is. When you declare bankruptcy the trustee might ask how you determined the price for your home. Sometimes they may ask for more information about your valuation, perhaps a rates notice, a real estate agency’s appraisal or a registered valuation. A useful strategy would be to search www.realestate.com.au then click on the ‘Sold’ tab on that particular website and search for the most recent house sales in your street or neighbourhood. This will assist you to get some idea of the value of the market at the moment. Always remember, the valuation is based upon a quick sale not a sophisticated real estate agent’s marketing project. Understanding this step is essential, at Bankruptcy Experts Australia we can give you guidance before moving on, call us on 1300 795 575.
Will the Bank Let Me Keep My House Even If I’m a Bankrupt?
Why would the bank want bankrupt customers? Wouldn’t they wish to sell your home and not take the chance on you? Consider this, the bank that has generously offered you the money for your residence is making a good monthly income in interest from you, month after month. Provided you keep up to date with your payments then the mortgage lender really wants you in your home at all costs. Having said that, you keeping your home is not the bank’s call. If a trustee makes a decision that there is enough equity in your house to liquidate it, they will force you and the bank to sell your home.
Bankruptcy and Employment
Will My Employer
Usually, there is no good reason for your employer to be advised of your personal bankruptcy. When you make over the income threshold and you are asked to make an income payment, you will organize those payments yourself – it does not go through your workplace.
Bankruptcy Income Thresholds
How Much Can I Earn When I’m Bankrupt?
In Australia there is no restriction on just how much you can earn when you are bankrupt. Before ﬁling for bankruptcy, however, it is important to consider your income and make sure bankruptcy is the best option for you before proceeding. Find out just how much you can make before you have to start paying funds to your creditors via your trustee. There are also other things to consider with bankruptcy income such as Child Support, Hardship & Self Employment. If you are worried about this simply call us at Bankruptcy Experts Australia on 1300 795 575.
What Can My Partner Earn If I Go Bankrupt?
In most cases in Australia, your partner is seen as a completely separate entity in the eyes of the law and will not be impacted ﬁnancially by your bankruptcy. When it comes to a joint loan, you should ﬁrst seek further advice. Call Bankruptcy Experts Australia today for an obligation-free chat on 1300 795 575.
Who Is Considered a Dependent?
A dependent can be anybody, of any age, who resides with you and earns no more than $3,708 per year. If you have children who do not live with you full-time, and you pay child support for them, you cannot class them as dependents. By the way, Centrelink payments are considered income for your dependents.
What If My Spouse or Partner and I Both Need to Go Bankrupt?
If, as a couple, you both have to declare bankruptcy and you have no dependents, then you are allowed to earn up to $1,083.01 net each. The same income rules apply to each person individually. If you have children refer to the income thresholds in the chart above. If you have additional questions call us at Bankruptcy Experts Australia on 1300 795 575.