Bankruptcy in Sunshine Coast - Will my income be affected if I go bankrupt?

Bankruptcy Sunshine Coast is a challenging process, and you should 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 have to know about going bankrupt is there is no limit on how much you can earn. However, I will say that your income is a serious consideration when working through when it comes to Bankruptcy.

The very first thing you need to know 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 raises the threshold amount, if you have financial strains in Sunshine Coast like medical, child care, significant travel to and from work, or a situation where your partner used to work but is no longer able to add to the family income.

Some of the insightful parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into account 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 provide $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are much more issues involving income and what is or isn't considered income - if you're unsure, it's ideal to get professional advice. The reason you have 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 will likely be taken by the ATO while you are bankrupt to contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund as long as that doesn't take you over your threshold income limits.

If you feel like when it comes to Bankruptcy, your situation is more complex, then just get specialist advice in Sunshine Coast. I may sound like a broken record, but keep in mind that it's always a good idea to overcome these options prior to declaring bankruptcy, because 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 questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: bankruptcyexpertsSunshineCoast.com.au.

Bankruptcy in Sunshine Coast - Choices, Choice, Choices

When it comes down to Bankruptcy Sunshine Coast, there are a ton of choices that we get given depending upon who we are, who we approach, and exactly what has happened. 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 Sunshine Coast, most of the facts you receive on this topic will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can assure you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for helping you wrap all of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but these people won't be doing it for free. Please do not misunderstand me: if you think your financial problems in Sunshine Coast may be fixed by paying less interest, then go ahead and investigate the options. Even a small amount of interest saved over years rapidly adds up.

More often than not I find if you read this blog you've most likely attempted to consolidate your debts already and come to the following realisations such as these:

• Your credit rating is no good, and your credit file definitely has nonpayments on it so not a single person 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 probably reached the stage where you've had more than enough, you're emotionally drained, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

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

Freedom is the main thing 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 firm that advertises on TV. Basically this method is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys mediate a deal on your behalf. 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 can sound alright when it comes to the problems with Bankruptcy - that is up until you realize 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 proposal is denied or ought to be renegotiated.

Generally people you owe money prefer all their money back as well as interest. Sometimes they'll go for less than 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 truly 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 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 heard of 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 shrewd 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 Sunshine Coast aren't going to get that lucky!

If you want 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 Sunshine Coast on 1300 795 575, or visit our website:bankruptcyexpertsSunshineCoast.com.au.