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

Bankruptcy Geelong is a challenging process, and you have to make sure you get the right insight. 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 restraint on how much you can earn. However, I will mention that your income is a significant consideration when working through when it comes to Bankruptcy.

The first thing you need to understand about this area of Bankruptcy is just how much 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 quantity 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 make an application for a hardship variation that increases the threshold amount, if you have costs in Geelong like medical, child care, serious travel to and from your job, or a situation where your partner used to work but is no longer able to add to the family income.

Some of the informative parts of Bankruptcy is that your employer will not be informed 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 give $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 skilled advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically practical option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO whilst 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 as long as that doesn't take you over your threshold income restrictions.

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

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Geelong on 1300 795 575, or explore our website: bankruptcyexpertsGeelong.com.au.

Bankruptcy in Geelong - Choices, Choice, Choices

When it comes down to Bankruptcy Geelong, there are a ton of options that we get given depending upon who we are, who we approach, and just what has happened. Among the most common confusion I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Geelong, a lot of the information and facts you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can guarantee you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for aiding you wrap each of your credit card and personal loans into a single neat and tidy bundle.

I hate to tell you this but these guys aren't going to be doing it free of charge. Please do not misunderstand me: if you think your financial issues in Geelong may possibly be solved by paying less interest, then go on and investigate the choices. Even a little amount of interest saved over years rapidly adds up.

Normally I find if you are reading this blog you've probably tried to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is no good, and your credit file definitely has nonpayments on it so no one will give you a loan, consolidated or otherwise,.

• By the time you work it all out, you're so far down a hole that saving on a small amount of interest simply won't make a lot of difference,.

• You've most likely arrived at the point where you've had more than enough, you're emotionally 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 concerns Bankruptcy in Geelong, what's the 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 - might I add - regulated trustee including the government trustee ITSA, and not a private organization that advertises on TV. Ultimately this method is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they mediate a deal in your place. You can give a lump sum settlement figure or enter into a payment plan, or you can offer them assets as an alternative to cash. This might sound alright when it comes to the troubles with Bankruptcy - that is up until you discover that one of the problems with PIA's is that 75 % of the people you owe money to must agree on the deal. If they do not, your plan is rejected or will need to be renegotiated.

Generally the people you owe money prefer all their money back plus interest. Sometimes they'll settle for beneath the amount you owe them - it's generally a percentage of the debt - but allow me to stress this aspect: 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 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 come across creditors going for 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 brilliant 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 Geelong aren't going to get that lucky!

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsGeelong.com.au.