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

Bankruptcy Coffs Harbour is a intricate process, and you need 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 have to know about going bankrupt is there is no constraint on how much you can earn. However, I will mention that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to understand 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 sum you earn per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can get a hardship variation that raises the threshold amount, if you have costs in Coffs Harbour such as medical, child care, considerable travel to and from your job, or a situation where your spouse used to work but is not able to support the family income.

Some of the useful parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, 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 thought about, for example if you provide $5,000 child support each year and you have no dependents living with you then your modified net income limit will be $55,332.10.

There are a lot more issues covering income and what is or isn't thought of as income - if you're not sure, it's ideal to get specialist advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can 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 so long as that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your issue is more challenging, then please get professional advice in Coffs Harbour. I may seem like a broken record, but remember that it's always a good idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's far 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 Coffs Harbour on 1300 795 575, or check out our website: bankruptcyexpertsCoffs Harbour.com.au.

Bankruptcy in Coffs Harbour - Are you going to get bitten?

When people in Coffs Harbour ask me about Bankruptcy, I tell them the time-honored 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 view one last sunset before he dies. 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 bite the boy despite his vow not to do so. The snake's reply was 'You knew what I was when you picked me up.

Getting the right financial advice in Coffs Harbour when it relates to Bankruptcy is a lot like that little boy's experience, fraught with risk and danger, and usually skewed for the benefit of the person giving the advice. Often you'll get bitten except if you know what you've picked up before you move forward (avoid the rattlesnakes). I discovered the problem with receiving financial advice as a teenager, and it has been vital to Bankruptcy. I'd been working hard 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 rather high and investing your money was quite profitable. I spent some time researching many different investment options, and I went to visit a few financial advisors. It was transparent 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 solutions. What hit me was that they all had a very different strategy of what I should do. This baffled me so much that it put me off the whole idea of picking any of them.

I'm sure by now you have read enough on the internet to be totally bewildered about Bankruptcy and just what to do. It would most likely be easier for me to help you understand the nature of the financial snakes you could be grabbing while you are trying to get to the bottom of your financial troubles in Coffs Harbour. Basically, you have to try and recognize what your overarching choices are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Coffs Harbour for your needs. Essentially, you have 3 options for who to turn to.

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

Another possibility you may consider 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 of Bankruptcy, your accountant won't be much help to you at all.

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

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 speak to Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website:bankruptcyexpertsCoffsHarbour.com.au.

Bankruptcy in Coffs Harbour - Choices, Choice, Choices

When it comes toBankruptcy Coffs Harbour, there are a number of choices that we get given depending upon who we are, who we talk to, and what exactly has happened. The most common trouble 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 Coffs Harbour, a lot of the info you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can promise 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 all of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but these guys won't be doing it free of charge. Please do not misunderstand me: if you consider your financial problems in Coffs Harbour can possibly be solved by paying less interest, then go on and investigate the options. Even a small amount of interest saved over years easily adds up.

Typically I find if you are reading this blog you've most likely 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 defaults on it so no one 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 on a bit of interest just won't make a great deal of difference,.

• You've undoubtedly gotten to the stage where you've had more than enough, you're emotionally worn down, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.

Personal Insolvency Agreements

So when it relates to Bankruptcy in Coffs Harbour, what's the difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability 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 company that advertises on TV. Essentially this method resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they arrange 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 as an alternative to cash. This may sound acceptable when it comes to the issues with Bankruptcy - that is until you discover that one of the difficulties with PIA's is that 75 % of the people you owe money to will have to agree on the deal. If they don't, your plan is denied or ought to be renegotiated.

Generally the people you owe money want all their money back in addition to interest. Sometimes they'll go for less than 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 actually 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 opting 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 structures in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Coffs Harbour aren't going to get that lucky!

If you would like 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 Coffs Harbour on 1300 795 575, or visit our website:bankruptcyexpertsCoffs Harbour.com.au.