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If you reside in the Wollongong region and you are having problem with your Personal or Business Debts?

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Then give Bankruptcy Experts Wollongong a call. If your debts completely out of control, then perhaps the idea of bankruptcy has crossed your mind, and now you have finally taken the next and most courageous step identifying whether or not bankruptcy is appropriate for you. Just the prospect of it is hard enough having it become a reality. We understand that there is a tremendous sense of failure in this particular process. Maybe you are feeling stuck and like you have no alternatives.

You Can Be 100 % Debt Free!

Can you imagine a future devoid of creditors phone calls and looking forward to the mail again. There are a few things you need to know before you make that very challenging decision. Initially, the sooner you act the more choices you will have.

5 Questions you must settle in your mind before you declare yourself bankrupt.

Second of all, there are 5 significant questions you must have an answer to before you file for bankruptcy, if you would like to know what they are don’t hesitate to download the free e-book on the right hand side of this page it will explore these questions thoroughly and give you peace of mind that you are doing the right thing.

BANKRUPTCY OPTIONS

Is Bankruptcy my only option?

No! There are several approaches available to you. Below is a table detailing the pros and cons of various debt options, this chart is by no means all-encompassing but it will permit you to make a well informed decision.

Declare Bankruptcy, Bankruptcy, Bankruptcy Wollongong, Insolvency, How to File for Bankruptcy

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What is a Personal Insolvency Agreement?

This is adaptable agreement between you and your creditor. It is taken care of through a trustee who conducts to just how much you need to pay and when etc. Once those conditions have been met you are then free to begin again with a fresh start.

Why you may want to consider a Personal Insolvency Agreement

Pros – Personal Insolvency Agreements

  • Avoid bankruptcy
  • Possibly limit liability to make income contributions
  • You pay back 30 to 70 cents in the dollar to your creditors
  • It could be a very a quick process.
  • May have the ability to keep important assets.
  • The debtors assets are independently controlled
  • Lower legal costs connected with court proceedings

Cons – Personal Insolvency Agreements

  • You are not free until you have paid the entire debt
  • It may take several years to pay off the debt
  • It still impairs your credit file for 7 years the exact same as bankruptcy
  • You can not be a company director until the debt is paid off
  • You are required to meet in person your creditor one-on-one
  • Your details will be published in a local paper.

What is a Debt Agreement?

A debt agreement makes it possible for a debtor to enter into an arrangement with their creditors to satisfy their debts without being made bankrupt.

Can I Enter into a Debt Agreement?

You can’t enter into a Debt Agreement if you have been bankrupt, or you are currently already in a debt agreement. There are also income restrictions, property value and unsecured debt value restrictions, If you want to know more please call us on 1300 795 575

Pros – Debt Agreement

  • Avoid Bankruptcy
  • Stops creditors – can not take any further actions to recoop their debts;.
  • You may get to keep important assets.

Cons – Debt Agreement.

  • There is an upfront cost to begin.
  • You have to be approved. If you don’t earn enough you will be turned down.
  • If you don’t make your payments the agreement could be terminated then the creditors can resume recovering of their debts;.
  • The debtor details will appear on the National Personal Insolvency.
  • Index (NPII) from the date that the debt agreement proposal was agreed to by ITSA.
  • It still affects your credit rating for 7 years the same as bankruptcy.
  • Nothing changes with secured creditors rights they may repossess if the debtor is in default.

Why do some establishments say Debt Agreements or Personal Insolvency Agreements are the way to remove my debt?

The reason you find a barrage of expensive commercials on the television in the Wollongong region urging you to sign up for one of these options is there is plenty of money in it for the business that administer to them. You will notice if you haven’t already that every firm tends to give (biased) advice according to the product that they provide. As an example Debt Agreement Companies ridicule bankruptcy companies and so it goes with much of the financial services industry.

Should I think about a Debt Consolidation Loan?

There is the very occasional situations where a debt consolidation loan is the right choice. Typically however the issue with them is all it is really doing is bundling 5-15 different debts into one great big loan. If you are straining to pay all your various loans now why do you think it will be magically easier to have one enormous bill. Just to make it all worse you normally have to pay up front for the luxury of this option.

If you want to get some advice on this simply call us on 1300 795 575 or go and download “The Big 5” e-Book.

Declare Bankruptcy, Bankruptcy, Bankruptcy Wollongong, Insolvency, How to File for Bankruptcy

BANKRUPTCY AND THE FAMILY HOME

If I file for bankruptcy can I keep my house?

In most cases the answer is yes. If this is a serious worry for you then the best way to get the solution is to phone us here at Bankruptcy Experts Wollongong on 1300 795 575 and once we have comprehended your situation we can give you a crystal clear picture over the phone.

Essentially everyone is emotionally connected to their home, its where the kids have grown, its where you enjoy life on a day to day basis. People usually think its an unavoidable repercussion of bankruptcy and because of this they pressure themselves to the brink of insanity to not lose the family home.

Will the bank allow me to keep my house even if I’m bankrupt?

Why you may ask would the bank want bankrupt customers wouldn’t they wish to sell your house and not take the chance? The bank that has generously lent you the money for your house is making good money every month in interest from you, month in month out, as long as you keep up to date with your payments then the bank wants you in there at all costs. Ultimately however it’s not the bank’s call if the trustee determines that there is plenty of equity in your home the trustee will compel you and the bank to sell your home.

What things determine if I will lose my home?

If you are up to date with your repayments then the greatest issue is equity. The trustee has a responsibility to gather as much money to help pay your bills once you file for bankruptcy. Equity is the secret here. If you have $300,000 equity in your home and you have $100,000 worth of debts and no other way to pay the debt then the trustee sees you equity as a way to repay your debt, so the trustee will sell your house repay the debt and give you whatever is left over.

How is equity determined?

Usually a registered valuer from the Wollongong area is the most effective and safest way to figure out your current equity position, before you rush out and get the local real estate agent to give you a Mickey Mouse evaluation call us for how to go about this process so that you can have assurance 1300 795 575. Or for a more substantial illustration about how your house will be considered feel free to download “The Big 5” e-book.

Suppose my partners name is on the house loan?

Another significant factor is ownership, in many cases houses are acquired in joint names. Put simply a couple may have acquired a house 50/50 using both earnings to make the monthly payments. If one owner declares bankruptcy and the other partner doesn’t, the equity is only calculated on the 50 % of the house.

So basically if you have a home in joint names and your total equity position is $100,000 then your actual equity is fifty percent of that $50,000.

It seems like I have very few options when if comes to my house?

No not really there are several choices readily available to you when it comes to your house or some other asset when declaring bankruptcy. You will want to get the right assistance about this however, getting it wrong could be fatal. If you have questions don’t hesitate to phone us about your house on 1300 795 575.

Declare Bankruptcy, Bankruptcy, Bankruptcy Wollongong, Insolvency, How to File for Bankruptcy

BANKRUPTCY AND EMPLOYMENT

Will my employer be informed?

No

Who will know about my bankruptcy?

There are four groups of people that will be told that you are bankrupt. 1. The people you tell. 2. Your creditors or people you owe money to. 3. Individuals that see your credit file while your bankrupt. The only way that will happen is if you sign a privacy form for them to access your credit report. You only ever do this we you apply for a loan. 4. You will be listed on the National Insolvency Index it online somewhere, its hard to find and you need to pay to see if someone is bankrupt on it.

At Bankruptcy Experts Wollongong we are entirely aware that there is still a stigma about bankruptcy we are aware of this concern as a matter of fact we can help make certain that if you declare yourself bankrupt you don’t have to go to court or get your name in the papers or be publicly made out to be a criminal. We can help ensure bankruptcy is easy and quick. In fact the whole process will only take a couple of days. It permits the average punter to get out of debt and on with their lives. For more detailed information about your job download “The Big 5” e-Book.

Will I lose my job if I go bankrupt?

The answer to the question is occasionally. The complication with some professions isn’t that you can’t do the job any longer, it’s more an issue of professional bodies or associations that see bankruptcy in a dim light and can make things tough for you.

Declare Bankruptcy, Bankruptcy, Bankruptcy Wollongong, Insolvency, How to File for Bankruptcy

What I would advise is that you do your own homework here, do the homework and investigate that process first before declaring bankruptcy because that may help you make a decision. Check if your profession is on the chart below. If it is, I ‘d speak to them personally and explain your circumstance. Several organizations won’t have a problem with your bankruptcy provided that it wasn’t accompanied by shady or dubious behavior.

If you think you employment may be impacted by your possible bankruptcy call us here at Bankruptcy Experts Wollongong on 1300 795 575.

BANKRUPTCY AND INCOME

Declare Bankruptcy, Bankruptcy, Bankruptcy Wollongong, Insolvency, How to File for Bankruptcy

Will my income be impacted if I go bankrupt?

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 point out that your income is a major consideration when working through whether you need to go bankrupt.

The very first thing you need to know is just how much you can earn before you start repaying money to your creditors via your trustee (see summary below).

Declare Bankruptcy, Bankruptcy, Bankruptcy Wollongong, Insolvency, How to File for Bankruptcy

Net income is the pre-tax / in the hand amount you earn annually. A dependant is someone who resides with you and earns less than $3,124 annually (irrespective their age).

You can apply for a hardship variation that raises the threshold amount, if you have costs such as medical, child care, significant travel to and from work, or a scenario where your spouse used to work but is no longer able to add to the household income.

Child support is always considered in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also taken into consideration, for example if you pay $5,000 child support annually and you have no dependants living with you then your revised net income threshold will be $55,332.10.

If you need more information and facts about your income thresholds go on and download “The Big 5” E-book. there are some cases due to income that it is not an economically viable option to declare bankruptcy because you earn too much in comparison to the debt you have.

What is your money worth in 2016?

Changes are coming to the world of bankruptcy, if you need to know what is happening, then pay attention here. As of March 2016 there has really been updates to the Income Threshold Amounts. This signifies that there are changes to just how much money you can retain when bankrupt, this is essentially your net income following tax and child support (if applicable) is deducted. If you’re in business while bankrupt, then of course it’s also after net (after tax) business costs, which is normally calculated annually.

Your net income might be balanced to consider things like salary sacrifice and substantial superannuation payments etc. Your net income can also allow more unusual costs incurred as a result of being employed, for example if you have an unusually high amount of travel expenses to get to and from your job this can sometimes also be considered. Your bankruptcy trustee needs to ascertain your real net income according to the bankruptcy rules.

The income threshold numbers are also per person, and are regulated by the Government every March and September to allow the movements in the cost of living.

As of March 2016 the income thresholds are as follows;

With no dependents your net income can be $54,518.10 net per annum, i.e. that’s about $1,048.25 net weekly take home pay. This is your spending money. It’s all yours. It’s what you can keep, and so anything over that amount is partition 50/50 with your bankruptcy trustee to be paid to your creditors.

With 1 dependent your net income can be $64,331.36 net per annum, i.e. around $1,237.14 net every week take home pay.

With 2 dependents your net income can be $69,237.99 net per annum, i.e. around $1,331.49 net every week take home pay.

With 3 dependents your net income can be $71,963.89 net per annum, i.e. around $1,383.92 net each week take home pay.

With 4 dependents your net income can be $73,054.25 net per annum, i.e. approximately $1,404.88 net every week take home pay.

With over 4 dependents your net income can be $74,144.62 net per annum, i.e. around $1,425.85 net each week take home pay.

If you feel like your case is more complicated, then feel free to get specialist advice. If you have a specific income question just contact us here at Bankruptcy Experts Wollongong on 1300 795 575.

What can my partner earn if I go bankrupt?

There is no limit to what your loved one can earn. Your loved one can earn a million dollars and they will not be required to contribute to your debts.

What if my spouse/partner and I both should go bankrupt?

If a husband and wife each go bankrupt, and say that they’ve got no dependants, then they can each earn $1,010.45 net. An easy way to understand it is the same income rules apply for each person in the home.

Who is considered a dependent?

In the case of bankruptcy a dependent is anyone you support who earns less that $3,343 per year.

Declare Bankruptcy, Bankruptcy, Bankruptcy Wollongong, Insolvency, How to File for Bankruptcy

BANKRUPTCY AND SELF EMPLOYMENT

Will I lose my small business if I declare bankruptcy?

The short answer is you don’t have to but you do will want to get the right advice. Corporate insolvency laws are very involved and you will need to tread carefully if you want to continue to be self-employed.

You may already recognize that you can no longer be the director of a Pty Ltd Company if you are bankrupt, nevertheless that doesn’t inevitably mean you can’t run your own business and employ staff etc.

What if my business has serious debts?

As a part of your bankruptcy we can help you erase your business debts so you can get a new beginning.

Should I put my company into liquidation?

Just one of the main reasons you may want to consider liquidation instead of bankruptcy is because if you liquidate your company, it doesn’t inevitably mean you have to declare bankruptcy. In Australia, businesses that become insolvent have a few options, such as liquidation, voluntary administration and so forth. If you wish to know more about liquidation and company re-structuring, visit the next page of this website, as there is much more about it there and or download “The Big 5” e-Book. Don’t forget, it’s the individuals who go bankrupt, not businesses.

This is a complex area, so get some expert advice on this one if you have a small business. Generally speaking, the debts in a business and personal debts go hand in hand when a company owner goes bankrupt.

What impact will bankruptcy have on my business?

A restriction that applies when you are bankrupt as a business owner is that you can be in your own business as a sole trader only. For some business owners, bankruptcy influences their ability to run the business because of the licensing issues discussed in chapter two. For example, if you run a building company, your license will be suspend once you’re bankrupt and therefore you can no longer trade without that license.

Isn’t it illegal to run a similar business after bankruptcy?

It could be. There are things to consider when and if you declare bankruptcy as a business owner: you can not rack up heaps of debt in your business, then go bankrupt and then open the doors the next day like nothing has happened. There are laws in place to prevent what is called “phoenix companies” popping up out of the ashes of an old company.

Don’t get overly pressured about what you can and can’t do as a business owner; just get the appropriate advice and call Bankruptcy Experts Wollongong now 1300 795 575.

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