Bankruptcy in Gold Coast - Will I lose my home if I go bankrupt?

Bankruptcy Gold Coast is a challenging process, but I know from meeting with thousands facing the prospect of bankruptcy over the years, that not much concerns people more than the thought of losing the family house. Almost every person is emotionally connected to their home - it's where the children have grown up, it's where you enjoy life on a day to day basis.

Will you lose your home if you go bankrupt? The response is a resounding maybe. (not very useful, I know) People generally imagine it's an inevitable consequence and a part of Bankruptcy, and hence push themselves to the brink of insanity to not lose the family home. But when it comes to the whole process of Bankruptcy, a key strength of Debt Agreements and Personal Insolvency Agreements is you can keep your house. The reason is simple: you've accepted to pay back the debt you are in.

So how is it possible to keep my Gold Coast house, you ask? It's easier if I explain the basic idea behind the Bankruptcy process as administered by the trustee, then you'll have a clearer picture.

The purpose of the bankruptcy trustee is to firstly abide by the regulation of the bankruptcy act 1966 (it's a very dry read about 600 pages if you are intrigued).

Within that regulatory framework, the trustee is to help recuperate monies owed to your creditors, that is done in a bunch of various ways but it mainly comes down to income and assets. The trustees role is to collect payments beyond your income threshold. The other role is to sell any assets that can contribute to repaying your debts.

What this seems is that yes the trustee will sell your house right? Not always. The only reason the trustee will sell any asset including your house is to get money to repay your debts. If there is no equity on your property then it's pointless to sell your home. This is happening increasingly since the GFC as house prices in many regions have been heading south so what you paid 4 years ago may not actually reflect the price today.

A quick word of advice here if you have a house in Gold Coast and are looking at Bankruptcy: get a specialist to help you through this process, there are plenty of variables in these scenarios that have to be considered.

You might wonder, why would the bank want bankrupt clients? wouldn't they hope to sell your house and not take the risk? The bank that has kindly lent you the money for your house is generating good money every month in interest out of you, month in month out, so long as you keep up to date with your payments then the bank really wants you in there at all costs. Essentially however it's not the bank's call if the trustee decides that there is ample equity in your house the trustee will force you and the bank to sell the house.

When you file for bankruptcy you are asked to put down the value of your house and the quantity you owe on the house. A tip if you are aiming to work out the value of your house: use a registered valuer as this will provide you peace of mind, don't use your neighbours' gut feel suggestions or a real estate agents advice to arrive at this figure. When you get a valuer out to your property, make sure you tell the valuer to value the property for a quick sale, make certain you mow the lawn and don't leave the kitchen in a mess also.

Valuers used to give two valuations: one for a quick sale and one for a well marketed non time delicate sale. Nowadays that's not the case, but if you meet them and let them know you need to sell the house in the next 30 days you may sway the result. The idea is that you want a real sell now figure.

There are two reasons this valuation technique is critical to you: one you will certainly have peace of mind ascertaining the market value of your house, and then you can easily build your equity position. The second thing is, your property may be worth far more than you thought. Get some suggestions before carrying this out. The number of times I've met with clients that have sold their family home of 20 years just to find out I could of helped them keep it; unfortunately this happens all too often

When it concerns Bankruptcy and houses, another big consideration is ownership, often houses are purchased in joint names. Simply put a couple may be a house 50/50 using both incomes to make the payments. If one party declares bankruptcy and the other party does not, the equity is only factored on the 50 % of the property.

When it involves Bankruptcy, this is just one of possibly numerous scenarios that are likely when it comes to the family home. Bear in mind the non-bankrupt party can buy the bankrupt's part of the home in bankruptcy also. I need to repeat this but get some help on this area of Bankruptcy because it is very tricky and every case is different.

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 get in touch with Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsGoldCoast.com.au.

Bankruptcy in Gold Coast - Who exactly do I speak to?

Should I speak to my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody knows your financial situation well in Gold Coast, It's going to be your accountant. However, the short answer is a definite No! It's not that your accountant won't have your best interests at heart when it comes to Bankruptcy, it's that his experience lie in helping you save you money at tax time, reducing your tax liability and lodging your BAS.

Most accounting degrees will spend hardly any to no time on insolvency, it's generally done as a post graduate speciality program for those who wish to work in the field. Unless your accountant is an insolvency specialist, he wouldn't know that a lot about the implications of Bankruptcy, I can guarantee you insolvency specialists know much about tax returns or BAS in. If you do manage to find an insolvency accounting firm in Gold Coast, they have the tendency to be large firms with very nice offices who charge accordingly.

Should I talk to my Solicitor about Bankruptcy?

No! You can speak with your solicitor in Gold Coast but more than likely it won't do you much good. Solicitors are certainly good at doing things lawyers do, like assisting you do your Will and buying your house and trying to keep you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Gold Coast usually have either a legal or accounting background, and the reason for that is simply that you can't enrol in the post graduate study to become a qualified insolvency practitioner until you have a law or accounting degree.

Just like there are a handful of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay a substantial price for their expertise.

Should I talk to a financial counsellor about Bankruptcy?

Yes! There are plenty of financial counselling services to guide you with this, they have no hidden agendas and they're a great option for letting you think through your situation when it comes to Bankruptcy. If you are freaking out constantly, not sleeping, not eating or over-eating and thinking about money pressures at all times, then get some help.

There are also charitable organizations around Gold Coast like Lifeline that offer a terrific service. They will be a sounding board if you just need a person to go over with you what your options are. Don't let your financial trouble destroy your life - in the end it's just money.

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

Bankruptcy in Gold Coast - does it matter if it is voluntary?

When it comes to Bankruptcy Gold Coast, quite often people aren't aware that there may be both voluntary, and involuntary bankruptcy - the two have different methods and policies.

Involuntary bankruptcy happens when someone you owe money to applies to the court to declare you bankrupt. Commonly when you get one of those notices, you have actually 21 days to pay all the debt. If you don't, then the creditor goes back to the court and requests the court to issue a sequestration order that declares you bankrupt. A trustee is assigned, and then you have 14 days to get the documents in then afterwards you are bankrupt.

You can challenge a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to prevent it going to the next level. Other than the way you became bankrupt there is in reality no difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're conducted to in the very same way.

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this process is incredible. If you think you are likely to be made bankrupt by someone, get some advice and act on that advice. Generally I've found it's always better to know what you can and can't do before you have someone else bankrupt you. Once you are bankrupt, it's generally far too late.

Voluntary Bankruptcy

On the other hand, when it comes to Bankruptcy, sometimes there are moments that it is the best option. So you may need to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for each person of course, but typically I find that one way you could work it out is to figure out how long it will take you to pay each one of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may help you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who came to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the rate she was paying her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can really help you think this through. If you move house and fail to remember to pay your $30 phone bill for 6 months more, it's very likely the phone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file truly damaged for that period of time - and all of this will affect how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unreasonable. The punishment doesn't seem to equal the crime in my book. So if you actually have defaults on your credit report for 5 years, bear in mind that bankruptcy is on your credit file for a total 7 years then its wiped off completely.

So if your credit rating is a big issue in trying to decide whether to take part in a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest variation is that with a DA or PIA you repay the money and nevertheless have it on your file for 7 years.

Bankruptcy

I have stated the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element most people are afraid of when they come to me to go over their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all finished with no strings attached. Compared to countries like the United States, our bankruptcy laws are quite generous.

I don't pretend to know why that is but a couple of hundred years ago debtors went to prison. These days I suppose the government assumes the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which in turn costs the taxpayer anyway.

Bankruptcy wipes all of your debts including ATO debts with the exception of a few things:.

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not actually insured.

There is much more that can be said about doing this and Bankruptcy in general but the purpose of this blog was to help you decide between a few available options. When getting some advice, bear in mind that there are always possibilities when it concerns Bankruptcy in Gold Coast, so do some investigation, and Good luck!

If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to get in touch with Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website:bankruptcyexpertsGoldcoast.com.au.

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 - Are you going to get bitten?

When people in Gold Coast ask me about Bankruptcy, I let them know the classic 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 discover one last sunset before he dies. The boy was hesitant, but the rattlesnake promised not to bite him in exchange for the ride. They travelled together only for the snake to in the end bite the boy despite his vow not to do so. The snake's answer was 'You knew what I was when you picked me up.'.

Acquiring the right financial advice in Gold Coast when it comes to Bankruptcy is a lot like that little boy's encounter, tangled up with risk and danger, and generally skewed for the benefit of the person offering the advice. Often you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with getting financial advice as a teenager, and it has been fundamental to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were fairly high and investing your money was really profitable. I spent a few years researching varied 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 great suits and plush offices, they all appeared to exude confidence and have all the answers. What struck me was that they all had a truly different strategy of what I should do. This confused me so much that it put me off the entire idea of opting for any of them.

I'm sure currently you have read more than enough on the internet to be totally baffled about Bankruptcy and exactly what to do. It would most likely be easier for me to help you learn about the nature of the financial snakes you may be picking up while you are attempting to get to the bottom of your financial issues in Gold Coast. Essentially, you have to try and recognize what your overarching choices are, do your own research into where to proceed with your strategy for Bankruptcy, and then approach the things you feel is best in Gold Coast for your requirements. Basically, you have 3 options for who to turn to.

The first option is a Solicitor - This may seem like the go-to possibility when you seem to be in trouble. But there certainly is only just so much assistance they can give on this matter. There are certainly specialist legal advisors in bankruptcy, but their experience features a hefty price.

Another possibility you may think about is your accountant - they are incredibly useful and vital to the task of managing your business, but for the most part, when you are thinking of Bankruptcy, your accountant won't be much help to you anymore.

Your best choice? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you have to figure out 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 get in touch with Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsGoldcoast.com.au.