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.
No comments:
Post a Comment