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

Bankruptcy Maitland is a confusing process, and you have to be sure you get the right suggestions. 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 restriction 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 amount of money 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 get a hardship variation that increases the threshold amount, if you have financial commitments in Maitland such as medical, child care, major travel to and from work, or a scenario where your spouse used to work but is no longer able to contribute to the household income.

Some of the intriguing parts of Bankruptcy is that your employer will not be told 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 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 a lot more issues surrounding income and what is or isn't thought of as income - if you're not sure, it's recommended to get professional advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances 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 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 circumstance is more complex, then please get professional advice in Maitland. I may sound like a broken record, but keep in mind that it's always a smart idea to overcome these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you would like to learn more about what to do, where to turn and what problems to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Maitland on 1300 795 575, or go to our website: bankruptcyexpertsMaitland.com.au.

Bankruptcy in Maitland - Are you going to get bitten?

When people in Maitland ask me about Bankruptcy, I tell them 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 discover one last sunset before he passes away. The boy was reluctant, but the rattlesnake vowed not to bite him in exchange for the ride. They journeyed 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.

Obtaining the right financial advice in Maitland when it relates to Bankruptcy is a lot like that little boy's encounter, fraught with risk and danger, and usually skewed for the benefit of the person offering the advice. Often you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I learned the problem with receiving financial advice as a teenager, and it has been key to Bankruptcy. I'd been working hard for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were fairly high and investing your money was quite profitable. I spent a few years 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 nice suits and plush offices, they all seemed to exude confidence and have all the solutions. What hit me was that they all had a truly different idea 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 more than enough on the internet to be totally overwhelmed about Bankruptcy and precisely what to do. It would probably be easier for me to help you comprehend the nature of the financial snakes you might be grabbing while you are trying to get to the bottom of your financial troubles in Maitland. Basically, you have to try and comprehend what your overarching options are, do your own research into where to proceed with your strategy for Bankruptcy, and after that approach the things you feel is best in Maitland for your requirements. 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 appear to be in trouble. But there certainly is only just so much aid they can give on this matter. There are certainly specialist legal advisors in bankruptcy, but their expertise features a hefty price.

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

Your best option? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and virtually all you should figure out when it comes to Bankruptcy.

If you would like to find out 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 Maitland on 1300 795 575, or visit our website:bankruptcyexpertsMaitland.com.au.

Bankruptcy in Maitland - Choices, Choice, Choices

When it comes down to Bankruptcy Maitland, there are a bunch of options that we get given depending upon who we are, who we talk to, and exactly what has happened. One of 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 Maitland, most of the help and advice you receive on this issue will reflect the interests of the advice giver. Therefore, if you call a debt consolidation company, I can promise 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 aiding you wrap each one of your credit card and personal loans into a single 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 feel your financial problems in Maitland can possibly be solved by paying less interest, then go ahead and check out the choices. Even a small amount of interest saved over years quickly adds up.

Normally I find if you read this blog you've undoubtedly tried to consolidate your debts already and come to the following realisations such as these:

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

• By the time you work all of it out, you're so far down a hole that saving a tiny bit of interest simply won't make a great deal of difference,.

• You've undoubtedly arrived at the point where you've had more than enough, you're mentally 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 concerns Bankruptcy in Maitland, 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 featuring the government trustee ITSA, and not a private firm that advertises on TV. Basically this process is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts 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 can sound alright when it comes to the troubles with Bankruptcy - that is up until you realize that one of the challenges with PIA's is that 75 % of the people you owe money to need to agree on the deal. If they do not, your plan is rejected or needs to be renegotiated.

Generally the people you owe money prefer all their money back and also interest. Sometimes they'll go for less than the amount you owe them - it's normally 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 really settle for.

Most of the time 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 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 wise 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 Maitland aren't going to get that lucky!

If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Maitland on 1300 795 575, or visit our website:bankruptcyexpertsMaitland.com.au.