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

Bankruptcy Gladstone is a challenging process, and you need 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 need to know about going bankrupt is there is no restriction on how much you can earn. However, I will point out that your income is a serious 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 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 request a hardship variation that raises the threshold amount, if you have costs in Gladstone such as medical, child care, substantial travel to and from your job, or a circumstance where your partner used to work but is not able to contribute to the household income.

Some of the interesting 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 give $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 more issues involving income and what is or isn't considered income - if you're not exactly sure, it's best to get qualified 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 situations not an economically practical option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can 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 limitations.

If you believe that when it comes to Bankruptcy, your circumstance is more intricate, then just get expert advice in Gladstone. I may sound 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 issues to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: bankruptcyexpertsGladstone.com.au.

Bankruptcy in Gladstone - Are you going to get bitten?

When people in Gladstone ask me about Bankruptcy, I let them know 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 view one last sunset before he passes away. The boy was hesitant, but the rattlesnake pledged not to bite him in exchange for the ride. They journeyed together only for the snake to in the end attack the boy despite his assurance not to do so. The snake's answer was 'You knew what I was when you picked me up.

Asking for the right financial advice in Gladstone when it relates to Bankruptcy is a lot like that little boy's experience, tangled up with risk and danger, and typically skewed for the benefit of the person 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 discovered the problem with receiving 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 little bit of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was quite profitable. I spent a long time researching different investment options, and I went to visit a few financial advisors. It was clear that they had more money than I did: they had great suits and plush offices, they all appeared to exude confidence and have all the answers. What struck me was that they all had an extremely different strategy of what I should do. This frustrated me so much that it put me off the whole idea of opting for any of them.

I'm sure by now you have read more than enough on the internet to be totally baffled about Bankruptcy and exactly what to do. It would undoubtedly be easier for me to help you comprehend the nature of the financial snakes you may be picking up while you are attempting to get to the bottom of your financial concerns in Gladstone. Essentially, you need to try and recognize what your overarching choices are, do your very own research into where to proceed with your strategy for Bankruptcy, and then approach what you feel is best in Gladstone for your needs. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may appear like the go-to option when you appear to be in trouble. But there certainly is only so much help they can give on this matter. There are certainly specialist legal advisors in bankruptcy, but their experience features a hefty price.

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

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you need to understand 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 contact Bankruptcy Experts Gladstone on 1300 795 575, or visit our website:bankruptcyexpertsGladstone.com.au.

Bankruptcy in Gladstone - Choices, Choice, Choices

 When it comes down to Bankruptcy Gladstone, there are a bunch of choices that we get given depending upon who we are, who we talk with, and what exactly has gone wrong. Among 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 Gladstone, a lot of the related information you receive on this issue will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, 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 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 they aren't going to be doing it for free. Please do not misunderstand me: if you believe your financial problems in Gladstone can be fixed by paying less interest, then go ahead and investigate the possibilities. Even a small amount of interest saved over years easily adds up.

Usually I find if you are reading 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 definitely has nonpayments 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 a bit of interest just won't make a lot of difference,.

• You've probably reached the stage where you've had enough, you're mentally drained, you can't go on yet 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 Gladstone, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

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 firm that advertises on TV. Ultimately this method is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they arrange a deal in your place. You can offer a lump sum settlement figure or enter into a payment plan, or you can offer them assets as an alternative to cash. This might sound fine when it comes to the issues with Bankruptcy - that is up until you realise that one of the challenges with PIA's is that 75 % of the people you owe money to have to come to an understanding the deal. If they don't, your plan is rejected or needs to be renegotiated.

Generally the people you owe money really want all their money back plus interest. Sometimes they'll go for beneath the amount you owe them - it's normally 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 in fact settle for.

In many 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 come across creditors going 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 shrewd 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 Gladstone aren't going to get that lucky!

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 contact Bankruptcy Experts Gladstone on 1300 795 575, or visit our website:bankruptcyexpertsGladstone.com.au.