Bankruptcy in Port Macquarie - Will my income be altered if I go bankrupt?

Bankruptcy Port Macquarie is a complex process, and you ought to ensure you get the right insight. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no regulation on how much you can earn. However, I will point out that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to keep in mind about this area of Bankruptcy is 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 amount you earn annually. 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 financial commitments in Port Macquarie such as medical, child care, sizable travel to and from work, or a scenario where your spouse used to work but is no longer able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be informed 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 thought about, for example if you provide $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 many more issues involving income and what is or isn't regarded as income - if you're not sure, it's a good idea to get qualified advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases 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 whilst you are bankrupt to add 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 please get professional advice in Port Macquarie. I may sound like a broken record, but bear in mind that it's always a good idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you want 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 Port Macquarie on 1300 795 575, or explore our website: bankruptcyexpertsPortmacquarie.com.au.

Bankruptcy in Port Macquarie - Are you going to get bitten?

When people in Port Macquarie ask me about Bankruptcy, I let them know the timeless 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 see one last sunset before he passes away. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They went together only for the snake to in the end attack the boy despite his vow not to do so. The snake's response was 'You knew what I was when you picked me up.

Asking for the right financial advice in Port Macquarie when it pertains to Bankruptcy is a great deal like that little boy's journey, laden with risk and danger, and typically skewed for the benefit of the person providing the advice. In most cases you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I learned the problem with obtaining 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 small amount of money I wanted to invest. It was the early 1980s so interest rates were quite high and investing your money was quite profitable. I spent a long time researching many different 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 a lot that it put me off the entire idea of going with any of them.

I'm sure currently you have read enough on the internet to be totally mixed up about Bankruptcy and just what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you might be picking up while you are attempting to get to the bottom of your financial problems in Port Macquarie. In essence, you have to try and recognize what your overarching choices are, do your very own research into where to proceed with your plan for Bankruptcy, and then approach just what you feel is best in Port Macquarie for your requirements. Basically, you have 3 options for who to turn to.

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

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

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you should know when it comes to Bankruptcy.

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult with Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website:bankruptcyexpertsPortmacquarie.com.au.

Bankruptcy in Port Macquarie - Choices, Choice, Choices

When it comes to Bankruptcy Port Macquarie, there are a load of choices that we get given depending on who we are, who we talk with, and exactly what has gone wrong. 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 Port Macquarie, a lot of the facts you receive on this subject 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 business is a multi-billion dollar industry making money in one very simple way: charging you a fee for assisting you wrap each of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but they won't be doing it for free. Please do not misunderstand me: if you feel your financial troubles in Port Macquarie may possibly be solved by paying less interest, then go ahead and look into the possibilities. Even a small amount of interest saved over years quickly adds up.

Normally I find if you read this blog you've most likely attempted 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 not a single person 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 a bit of interest simply won't make a great deal of difference,.

• You've probably arrived at the point where you've had enough, you're mentally burnt out, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it concerns Bankruptcy in Port Macquarie, 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 featuring the government trustee ITSA, and not a private agency that advertises on TV. Essentially this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys arrange a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or perhaps you can offer them assets instead of cash. This may sound acceptable when it comes to the troubles with Bankruptcy - that is up until you discover that one of the obstacles with PIA's is that 75 % of the people you owe money to will need to come to an understanding the deal. If they do not, your plan is denied or ought to be renegotiated.

Generally the people you owe money want all their money back as well as interest. Sometimes they'll opt for beneath the amount you owe them - it's typically 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 in fact 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 heard of creditors settling 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 clever 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 Port Macquarie 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 Port Macquarie on 1300 795 575, or visit our website:bankruptcyexpertsPortmacquarie.com.au.