Is Bankruptcy Right for Me?
Bankruptcy is one of the hardest things anybody has to ever deal with. Making the right decision is not easy. That is why we have created a free eBook – The Big Five – to help you make a well educated decision. At Bankruptcy Experts Hervey Bay we suggest 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 thinking about bankruptcy, having the ability to answer these questions is vital. When you have all this information then you will understand exactly what will happen to your business and assets should you decide 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 Hervey Bay directly on 1300 795 575.
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Bankruptcy Options
Bankruptcy vs
Debt Agreement
Is going bankrupt my only choice? No of course not you always have a choice, you may want to think about 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 benefits and drawbacks 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 invest a lot on TV commercials … there is a lot in it for them if you choose them … In a desperate bid for your custom, things rapidly turn into a cat fight, with one company turning against another. And everyone claims they are the best. We are not here to compete. Here at Bankruptcy Experts Hervey Bay we are here to educate you so you can decide for yourself.
Debt Agreements
Personal Insolvency Agreements
Should I Consider a
Debt Consolidation Loan?
A debt consolidation loan is sometimes the best plan. What the plan does is to pack all the different loans into one, much larger loan. There might be a fee to consolidate the debts. One of the biggest challenges to consider is your credit rating, often people thinking about bankruptcy have a badly damaged credit rating so a debt consolidation loan is just not an option.
Who Will Know About My Bankruptcy?
An individual’s privacy is a big deal when you file for bankruptcy. The days of your name being published in the paper as a bankrupt are long gone.
In fact, there are generally only four kinds of people who will learn 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 make an application for a loan. (this involves you giving them authorization first), Making an application for a loan is something you will not be doing for the 3 years you are bankrupt since nobody 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 actually not failed. You are just someone who wants to put an end to crippling debt and carry on with their lives. At Bankruptcy Experts Hervey Bay, 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.
Bankruptcy and the Family Home
If I File for Bankruptcy Can I Keep My House?
In a lot of cases the answer is yes. If losing your house is a major concern for you then the very best way to find the answer is to call us here at Bankruptcy Experts Hervey Bay on 1300 795 575. As soon as you tell us about your situation, we can give you a really clear understanding of your options over the phone. Practically everybody is emotionally linked to their house; it is where the kids have grown up, it is where you indulge in life on a day to day basis. People frequently pressure themselves to the edge of insanity trying to not lose the family home, assuming this is an unavoidable effect of bankruptcy.
Suppose My House Has a Lot of Equity?
What Can I Do?
If your house has lots of equity and you are still drowning in debt, there are still some options available to you. In fact, this applies also to cars or other assets you may have. In this circumstance what you cannot afford to do is presume that everything will be ok. 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 Hervey Bay we offer a free initial consultation, so call us today on 1300 795 575.
What If My Partner’s Name Is on the Mortgage?
Frequently when a couple buy a home a single income is quite often not adequate to get approval for the mortgage, so the bank or lender will generally have both of these partners sign up for the credit. Once the house is bought both names are listed as shared tenants on the homes mortgage and the title deed of the property. Let us say Mick and Susie, who live in regional Queensland, bought a house 4 years ago for $400,000 with no deposit so their home loan was also $400,000. Mick is a plumber and needs to declare bankruptcy but Susie has a great job teaching at a high school and does not need to declare bankruptcy. Unfortunately, the house has not increased in value in the 4 years they have owned it and they also have only managed to pay the interest on the home loan in that time. So essentially, they still have a $400,000 mortgage on a home worth $400,000. Mick can then apply for bankruptcy and as long as they keep covering the mortgage, rates etc, they can continue to keep the house for the 3 years Mick is bankrupt.
This action will, in no way, affect Susie’s credit history rating or require her to declare bankruptcy at the same time. There is plenty to take in when it comes to houses and going bankrupt so if you have concerns about your house, do not think twice about calling us at Bankruptcy Experts Hervey Bay 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 should understand here. First of all, your gut reaction or assumption about the true worth of your property is most likely generous. Most people expect their home is worth far more than it actually is. When you declare bankruptcy the trustee may ask how you calculated the price for your home. In some cases they might ask for more detail about your valuation, perhaps a rates notice, a real estate agency’s appraisal or a registered valuation. A practical strategy would be to search www.realestate.com.au then click on the ‘Sold’ tab on that particular site and search for the latest home sales in your street or neighbourhood. This will assist you to get some idea of the value of the market at the moment. Always keep in mind, the valuation is based upon a fast sale not a sophisticated real estate agent’s marketing project. Understanding this step is essential, at Bankruptcy Experts Hervey Bay we can give you guidance before moving on, call us on 1300 795 575.
What Factors Would Contribute to Losing the House?
Equity! If you are up to date with your monthly payments then the most significant concern in bankruptcy is equity. If you have $300,000 equity in your house and you have $100,000 worth of unpaid debt and no other means to pay out the debt then the trustee sees your equity as a way to pay your debt consequently they will more than likely sell your house to repay the unpaid debt and give you whatever funds remain from the sale.
Will the Bank Let Me Keep My House Even If I’m a Bankrupt?
Why would the bank want bankrupt customers? Wouldn’t they want to sell your home and not take the chance on you? Consider this, the bank that has generously provided you the money for your home 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 prefers you in your home at all costs. Having said that, you keeping your house is not the bank’s call. If a trustee makes a decision that there is sufficient equity in your home to liquidate it, they will force you and the bank to sell your home.
What If I Have Received a Notice From the Tax Office?
One of the most important things to note is that YOU MUST NOT LET A TAX OFFICE NOTICE LAPSE. It will be best to contact us at Bankruptcy Experts Hervey Bay on 1300 795 575 as soon as you receive a tax notice. We can then help you work through the procedures as quickly as possible to get the most beneficial outcome for you.
When we have assessed your needs, we can create an action plan to help advise to you the very best strategy. From this point, you can evaluate your options and decide on where you go from there.
Bankruptcy and Employment
Will My Employer
Be Advised?
Normally, there is no good reason for your employer to be informed 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.
Will I Lose My Job If I File for Bankruptcy?
When bankrupt there is a difference between presently being employed and making an application for a new position. Rarely will you ever lose your job due to the fact that you have filed for bankruptcy. For example, it is difficult to get into the Defence Forces as a current bankrupt, but they do not terminate your employment if you become bankrupt when you are already employed by them.
Each professional body has its own rules, and this differs from one state to another. Our advice is to speak directly to your industry-specific experts, who will know precisely how your unique circumstance works in Qld. This is worth doing before moving forward with your bankruptcy, as it may be an important factor in your decision. Check out the chart below for a list of some occupations where seeking further, industry-related assistance is a must. Some industries will not have a problem with your bankruptcy so long as it is all above board. Please do not hesitate to call us at Bankruptcy Experts Hervey Bay on 1300 795 575 with any questions you have.
Bankruptcy Income Thresholds
How Much Can I Earn When I’m Bankrupt?
In Queensland 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 ensure bankruptcy is the best option for you before continuing. 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 think about with bankruptcy income such as Child Support, Hardship & Self Employment. If you are concerned about this simply call us at Bankruptcy Experts Hervey Bay on 1300 795 575.
Bankruptcy and Income
Every year in March and September the Government audits income threshold figures based upon the current cost of living. This means that the amount of money you are able to earn (net income, after tax and child support) while bankrupt is always fluctuating, and your trustee will have to determine your real net income. This real net income figure will depend on various elements such as child support, salary sacrifice, superannuation payments and business expenses.
What Can My Partner Earn If I Go Bankrupt?
In most cases in Qld, your partner is considered a totally separate entity in the eyes of the law and will not be impacted financially by your bankruptcy. In the case of a joint loan, you should first seek further guidance. Call Bankruptcy Experts Hervey Bay today for an obligation-free chat on
Who Is Considered a Dependent?
A dependent can be any person, of any age, who resides with you and earns no more than $3,708 annually. 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 need to declare bankruptcy and you have no dependents, then you are permitted to earn up to $1,083.01 net each. The same income rules apply to each person independently. If you have children refer to the income thresholds in the chart above. If you have more questions call us at Bankruptcy Experts Hervey Bay on 1300 795 575.
What is a Personal Insolvency Agreement?
This is an adaptable agreement in between you and your creditors. It is handled through a trustee who administers just how much you need to pay and when. When those conditions have been fulfilled, you are then free to begin afresh with your life’s new chapter.
What is a Debt Agreement?
A debt agreement makes it possible for a debtor to participate in an arrangement with their creditors to satisfy their debts without having being made insolvent.
You cannot enter into a Debt Agreement if you have already been bankrupt, or you are presently already in a debt agreement. Bear in mind, there are also salary limits, property market valuations, and unsecured debt value constraints. If you would like to know more please get in touch with us at Bankruptcy Experts Hervey Bay on 1300 795 575.
Debt Agreements (Part IX)
DDebt Agreements are complicated and can have serious far-reaching consequences. This page consists of basic and general information only.
In general, you may want to think about a Debt Agreement when the following applies:
If you have considerable assets to protect, as long as they are valued less than $236,128.80.
When you have smaller sized debts up to the value of $113,349.60 in total.
You do not make more than $88,547.55.
Remember it is still an act of bankruptcy, if your creditors do not accept the Debt Agreement, they can make use of it to apply to the court to make you bankrupt. Debt Agreements are only appropriate for people in quite specific situations.
How much you pay back?
This is a negotiated amount depending upon your circumstances, remember if you are unemployed or do not earn enough you probably will not qualify. For instance, if you have proposed to repay 90% of all your outstanding debts over a 5-year time frame, then all creditors will get 90% of what you owe them. Bear in mind if you do not continue and fulfill the agreement then you are back to square one.