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

Bankruptcy Tamworth is a complex process, and you need to make 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 have to know about going bankrupt is there is no rule on how much you can earn. However, I will say 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 the amount 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 annually. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can request a hardship variation that raises the threshold amount, if you have expenses in Tamworth like medical, child care, substantial travel to and from your job, or a situation where your spouse used to work but is no longer able to contribute to the household income.

Some of the insightful 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 many more issues surrounding income and what is or isn't regarded as income - if you're not sure, it's best to get specialist 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 instances not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will 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 provided that doesn't take you over your threshold income caps.

If you feel like when it comes to Bankruptcy, your case is more challenging, then feel free to get experienced advice in Tamworth. I may seem like a broken record, but remember that it's always a good idea to work through these options prior to declaring bankruptcy, since 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 Tamworth on 1300 795 575, or visit our website: bankruptcyexpertsTamworth.com.au.

Bankruptcy in Tamworth - Are you going to get bitten?

When people in Tamworth 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 see one last sunset before he passes away. The boy was hesitant, 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 response was 'You knew what I was when you picked me up.

Getting the right financial advice in Tamworth when it pertains to Bankruptcy is a lot like that little boy's experience, laden with risk and danger, and typically skewed for the benefit of the individual offering the advice. In most cases you'll get bitten except if you know what you've picked up before you move forward (avoid the rattlesnakes). I learned 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 quite high and investing your money was very profitable. I spent time researching a variety of investment options, and I went to visit a few financial advisors. It was clear that they had more money than I did: they had nice suits and plush offices, they all appeared to exude confidence and have all the solutions. What struck me was that they all had a very different strategy of what I should do. This confused 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 overwhelmed about Bankruptcy and exactly what to do. It would undoubtedly be easier for me to help you learn about the nature of the financial snakes you may be picking up while you are trying to get to the bottom of your financial problems in Tamworth. Essentially, you need to try and recognize what your overarching options are, do your very own research into where to proceed with your plan for Bankruptcy, and then approach the things you feel is best in Tamworth for your requirements. Basically, you have 3 options for who to turn to.

The first option is a Solicitor - This may seem like the go-to option when you seem to be in trouble. But there is only just so much assistance they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their knowledge comes along with a hefty price.

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

Your best choice? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you need to know when it comes to Bankruptcy.

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult with Bankruptcy Experts Tamworth on 1300 795 575, or visit our website: bankruptcyexpertsTamworth.com.au.

Bankruptcy in Tamworth - Choices, Choice, Choices

When it comes down to Bankruptcy Tamworth, there are a number of options that we get given depending on who we are, who we speak with, and exactly what has gone wrong. One of the most common trouble I see with Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Tamworth, much of the related information you receive on this subject will reflect the interests of the advice giver. That is why, if you call a debt consolidation provider, I can assure 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 aiding you wrap every one of your credit card and personal loans into just one neat and tidy bundle.

I hate to tell you this but these guys aren't going to be doing it free of charge. Please do not misunderstand me: if you feel your financial troubles in Tamworth might be fixed by paying less interest, then go on and look into the choices. Even a small amount of interest saved over years rapidly adds up.

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

• Your credit rating is no good, and your credit file already has nonpayments on it so nobody 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 on a tiny bit of interest just won't make a lot of difference,.

• You've probably gotten to the point where you've had more than enough, you're emotionally exhausted, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail etc.

Personal Insolvency Agreements

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

Overall flexibility is the main thing Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - may I add - regulated trustee including the government trustee ITSA, and not a private business that advertises on TV. Basically this process resembles 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 take part in a payment plan, or maybe you can offer them assets rather than cash. This might sound fine when it comes to the problems with Bankruptcy - that is up until you realize that one of the difficulties with PIA's is that 75 % of the people you owe money to have to agree on the deal. If they don't, your proposal is denied or needs to be renegotiated.

Generally the people you owe money prefer all their money back plus interest. Sometimes they'll opt for beneath the amount you owe them - it's generally a percentage of the debt - but let me 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 really 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 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 going 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 Tamworth aren't going to get that lucky!

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 call Bankruptcy Experts Tamworth on 1300 795 575, or visit our website:bankruptcyexpertsTamworth.com.au.