Bankruptcy in Adelaide - Will my income be influenced if I go bankrupt?

Bankruptcy Adelaide is a challenging process, and you ought to be sure 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 restraint on how much you can earn. However, I will point out that your income is a significant consideration when working through when it comes to Bankruptcy.

The very first thing you need to keep in mind 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 make an application for a hardship variation that raises the threshold amount, if you have costs in Adelaide such as medical, child care, serious travel to and from your job, or a situation where your spouse used to work but is not able to add 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 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 considered, for example if you pay $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are more issues encompassing income and what is or isn't thought of as income - if you're unsure, it's recommended to get qualified advice. The reason you should 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 whilst you are bankrupt to contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund just as long as that doesn't take you over your threshold income caps.

If you think when it comes to Bankruptcy, your issue is more complex, then please get qualified advice in Adelaide. I may seem like a broken record, but remember that it's always a good idea to work through these options before declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

If you wish 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 Advice Adelaide on 1300 879 867, or visit our website: bankruptcy-advice.com.au/Adelaide

Bankruptcy in Adelaide - Choices, Choice, Choices

When it comes down to Bankruptcy Adelaide, there are a lot of options that we get given depending upon who we are, who we talk with, and what exactly has gone wrong. The most common confusion 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 Adelaide, most of the related information you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation company, I can guarantee you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for helping you wrap most of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but these guys aren't going to be doing it free of charge. Please don't misunderstand me: if you believe your financial problems in Adelaide can possibly be solved by paying less interest, then go ahead and consider the choices. Even a little amount of interest saved over years rapidly adds up.

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

• Your credit rating is not good, and your credit file already has nonpayments on it so not a single person 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 little bit of interest just won't make a great deal of difference,.
• You've likely arrived at the stage where you've had more than enough, you're mentally burnt out, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

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

Freedom is the main point 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 organization that advertises on TV. Ultimately this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these guys arrange a deal in your place. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets rather than cash. This can 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 will have to agree on the deal. If they do not, your proposal is rejected or will need to be renegotiated.

Generally people you owe money prefer all their money back as well as interest. Sometimes they'll opt for beneath the amount you owe them - it's normally 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 in fact settle for.

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

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 call Bankruptcy Advice  Adelaide on 1300 879 867, or visit our website: bankruptcy-advice.com.au/Adelaide.