Bankruptcy in Wollongong - Will my income be changed if I go bankrupt?

Bankruptcy Wollongong is a complex process, and you should ensure you get the right recommendations. 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 rule 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 learn about this area of Bankruptcy is just 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 quantity 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 increases the threshold amount, if you have financial strains in Wollongong like medical, child care, major travel to and from your job, or a circumstance where your partner used to work but is no longer able to support the household income.

Some of the useful parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always looked at in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you provide $5,000 child support each year and you have no dependents living with you then your changed net income limit will be $55,332.10.

There are much more issues involving income and what is or isn't considered income - if you're not sure, it's a good idea to get professional advice. The reason you will need to 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 may 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 so long as that doesn't take you over your threshold income limits.

If you feel like when it comes to Bankruptcy, your situation is more challenging, then just get experienced advice in Wollongong. I may seem like a broken record, but remember that it's always a great idea to work through these options prior to declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you would like 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 Wollongong on 1300 795 575, or visit our website: bankruptcyexpertsWollongong.com.au.

Bankruptcy in Wollongong - Choices, Choice, Choices

When it comes down to Bankruptcy Wollongong, there are a lot of choices that we get given depending upon who we are, who we approach, and exactly what has gone wrong. 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 Wollongong, most of the information you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation firm, I can guarantee you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very basic way: charging you a fee for assisting you wrap most of your credit card and personal loans into just one neat and tidy bundle.

I hate to tell you this but they aren't doing it free of charge. Please don't misunderstand me: if you think your financial issues in Wollongong might be fixed by paying less interest, then go on and look into the choices. Even a little amount of interest saved over years easily adds up.

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

• - Your credit rating is not good, and your credit file definitely has nonpayments on it so nobody 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 small amount of interest just won't make a great deal of difference,.

• - You've quite possibly reached the point where you've had more than enough, you're emotionally burnt out, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes to Bankruptcy in Wollongong, what's the big difference between a Debt Agreement and a Personal Insolvency Agreement?

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 business that advertises on TV. Basically this process is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they negotiate a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets as an alternative to cash. This can sound fine when it comes to the troubles with Bankruptcy - that is 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 has to be renegotiated.

Generally the people you owe money want all their money back as well as interest. Sometimes they'll settle for beneath 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 truly settle for.

In most 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 choosing 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 Wollongong aren't going to get that lucky!

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Wollongong on 1300 795 575, or visit our website:bankruptcyexpertsWollongong.com.au.

Bankruptcy in Wollongong - Are you going to get bitten?

When people in Wollongong 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 dies. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They travelled together only for the snake to eventually bite 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 Wollongong when it concerns Bankruptcy is a whole lot like that little boy's journey, laden with risk and danger, and normally skewed for the benefit of the individual presenting the advice. Often you'll get bitten unless you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with obtaining financial advice as a teenager, and it has been central 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 pretty high and investing your money was quite profitable. I spent some time researching various investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had good suits and plush offices, they all appeared to exude confidence and have all the answers. What hit me was that they all had an extremely different strategy of what I should do. This baffled me a lot that it put me off the whole idea of opting for any of them.

I'm sure currently you have read more than enough on the internet to be totally lost about Bankruptcy and exactly what to do. It would probably be easier for me to help you comprehend the nature of the financial snakes you might be picking up while you are trying to get to the bottom of your financial troubles in Wollongong. Basically, you need to try and understand what your overarching choices 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 Wollongong 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 choice when you appear to be in trouble. But there really is only just so much support they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their expertise features a hefty price.

Another solution 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 considering Bankruptcy, your accountant won't be much help to you any more.

Your best option? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and virtually all you need to understand when it comes to Bankruptcy.

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

Bankruptcy in Wollongong - Changes to aid Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Wollongong is changing? The Australian Government in late 2015 moved for some foundational changes to the Bankruptcy Laws in Australia. One of the most significant of these is the length of time that a person is bankrupt for. Now, there is a minimum amount of time that you must remain bankrupt, but, this 3 year period may very well be reduced down to just 12 months. So if you are inquiring about Bankruptcy, this news may be somewhat important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 proposed that "the proposed changes to ease the burden of bankruptcy laws didn't go far enough and the government should adopt US-style laws to protect the family home".

These improvements to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that giving protection to family assets was important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws deterred investors from supporting start-ups, and therefore mentoring had been "driven out of the system".

"They naturally find it very intimidating themselves personally and with their assets at risk in a risky early-stage deal, but with their own money in the deal and a lightened-up provision I think we 'd probably see more willingness. It could be more important than the money.".

Fraudulent Behavior.

The controversy surrounding this Bankruptcy issue in Wollongong that some come up with is that this modification will only motivate fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to defilement of the bankruptcy system. We have looked at the minimum, but on the other side of the matter, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has operated in an unethical or fraudulent way, and there are no propositions to change the implications of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Wollongong, I have a decent share of practical experience when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Wollongong I have never come across someone abusing the system or acting in an irresponsible way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur suffer through the very challenging task of bankruptcy, not once have I sensed they are happy about it. The average small business owner or entrepreneur in Wollongong does not start out taking enormous financial risks with the intention to fail. The media really loves citing the apparent misuse that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These recommended changes will be good for often the very best and brightest in Wollongong not get kicked out of the game financially for financial decisions often outside of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, managers keeping this country going.

There certainly is a fine line with just what the government is trying to do here, because they are attempting to balance helping people who have made decisions out of their control, and discouraging people from making mistakes that land them in trouble and consequently an issue of Bankruptcy. However you also don't want to kill the experience and knowledge that business owners have. You certainly don't want to shatter people simply because they have had an honest failure in a large or small start-up venture that has not gone well.

At the major end of town large established companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of bankruptcy were minimized because directors are troubled they'll be personally accountable in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I cannot imagine, that these variations will be damaging to Australia's economy, actually these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health field because the emotional cost of bankruptcy is substantial. When it comes to Bankruptcy in Wollongong not a day passes where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you really need some help with your debts in Wollongong or are just considering Bankruptcy, feel free to call us here at Bankruptcy Experts Wollongong on 1300 795 575, or visit our website: www.bankruptcyexpertswollongong.com.au