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

Bankruptcy Gold Coast is a complicated process, and you have to make sure 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 need to know about going bankrupt is there is no regulation on how much you can earn. However, I will mention that your income is a considerable consideration when working through when it comes to Bankruptcy.

The very first thing you need to understand 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 amount you earn each year. 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 increases the threshold amount, if you have financial commitments in Gold Coast such as medical, child care, substantial travel to and from your job, or a circumstance where your spouse used to work but is no longer able to add to the family income.

Some of the interesting parts of Bankruptcy is that your employer will not be notified 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 considered, for example if you pay $5,000 child support each year and you have no dependents living with you then your amended net income limit will be $55,332.10.

There are a lot more issues encompassing income and what is or isn't considered income - if you're unsure, it's ideal to get specialist advice. The reason you will need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can be taken by the ATO while you are bankrupt to chip in toward your tax bill. If you don't have a tax bill then you will keep your tax refund provided that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your situation is more complex, then feel free to get qualified advice in Gold Coast. I may seem like a broken record, but bear in mind that it's always a good idea to work through these options prior to declaring bankruptcy, due to the fact that once you have filed the paperwork it's too late to change your mind.

If you want to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: bankruptcyexpertsGoldcoast.com.au.

Bankruptcy in Gold Coast - Choices, Choice, Choices

When it comes to Bankruptcy Gold Coast, there are a load of options that we get given depending on who we are, who we talk to, and exactly what has happened. One of the most common confusion 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 Gold Coast, much of the facts you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can guarantee you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for aiding you wrap each one of your credit card and personal loans into just one neat and tidy bundle.

I hate to tell you this but these people aren't doing it for free. Please don't misunderstand me: if you believe your financial troubles in Gold Coast might be fixed by paying less interest, then go ahead and consider the possibilities. Even a little amount of interest saved over years easily adds up.

Usually I find if you read this blog you've most likely tried to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is not good, and your credit file already has defaults on it so nobody will offer you a loan, consolidated or otherwise,.

• By the time you work it all out, you're so far down a hole that saving a tiny bit of interest just won't make a lot of difference,.

• You've most likely gotten to the stage where you've had enough, you're mentally drained, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail etc.

Personal Insolvency Agreements

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

Overall flexibility 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 including the government trustee ITSA, and not a private business that advertises on TV. Basically this process resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts mediate a deal in your place. You can offer a lump sum settlement figure or enter into a payment plan, or perhaps you can offer them assets rather than cash. This might sound fine when it comes to the issues 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 have to come to an understanding the deal. If they don't, your plan is denied or will have to be renegotiated.

Generally people you owe money really want all their money back and also interest. Sometimes they'll settle for under the amount you owe them - it's normally a percentage of the debt - but let me 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 really settle for.

In many cases you'll have to pay back 100 % of the debt owed. This is not just because your creditors are greedy or have a mean streak, it's because the administrators take 20 % of whatever is agreed 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 going for less 80 % on rare occasions, but that usually only occurs with a public company going 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 smart lawyers and some very clever structures in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Gold Coast 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 call Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website:bankruptcyexpertsGoldcoast.com.au.