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

Bankruptcy Mildura is a complicated process, and you ought to be sure you get the right advice. 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 regulation on how much you can earn. However, I will mention that your income is a significant consideration when working through when it comes to Bankruptcy.

The very 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 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 increases the threshold amount, if you have costs in Mildura like medical, child care, major travel to and from your job, or a situation where your partner used to work but is not able to contribute to the family income.

Some of the useful parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into consideration 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 changed net income limit will be $55,332.10.

There are a lot more issues surrounding income and what is or isn't considered income - if you're uncertain, it's ideal 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 instances not an economically sensible 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 add 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 think when it comes to Bankruptcy, your issue is more intricate, then simply get qualified advice in Mildura. I may sound like a broken record, but keep in mind that it's always a smart idea to overcome these options prior to declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you intend to find out more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Mildura on 1300 795 575, or go to our website:bankruptcyexpertsMildura.com.au.

Bankruptcy in Mildura - Are you going to get bitten?

When people in Mildura 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 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 attack the boy despite his vow not to do so. The snake's reply was 'You knew what I was when you picked me up.

Receiving the right financial advice in Mildura when it comes to Bankruptcy is a great deal like that little boy's experience, filled with risk and danger, and normally skewed for the benefit of the person offering the advice. Often you'll get bitten except if you know what you've picked up long 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 small amount of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was really profitable. I spent some time researching a variety of 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 seemed to exude confidence and have all the solutions. What struck me was that they all had a truly different strategy of what I should do. This frustrated me a lot that it put me off the entire idea of going with any of them.

I'm sure by now you have read enough on the internet to be totally baffled about Bankruptcy and exactly what to do. It would most likely be easier for me to help you learn about the nature of the financial snakes you may be grasping while you are attempting to get to the bottom of your financial problems in Mildura. Basically, you need to try and figure out what your overarching alternatives 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 Mildura 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 seem to be in trouble. But certainly there 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 operating 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 figure out 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 consult with Bankruptcy Experts Mildura on 1300 795 575, or visit our website:bankruptcyexpertsMildura.com.au.

Bankruptcy in Mildura - Choices, Choice, Choices

When it comes down to Bankruptcy Mildura, there are a great deal of choices that we get given depending upon who we are, who we speak with, and just what has gone wrong. The most common confusion 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 Mildura, a lot of the facts you receive on this issue will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can promise you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very basic way: charging you a fee for helping you wrap every 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 consider your financial troubles in Mildura may possibly be fixed by paying less interest, then go on and explore the options. Even a little amount of interest saved over years quickly adds up.

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

• Your credit rating is no good, and your credit file already has defaults on it so not a single person 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 little bit 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 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 forth.

Personal Insolvency Agreements

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

Adaptability 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 firm that advertises on TV. Ultimately this process is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and they mediate a deal on your behalf. 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 can sound acceptable when it comes to the issues with Bankruptcy - that is until you realise that one of the obstacles with PIA's is that 75 % of the people you owe money to must come to an understanding the deal. If they don't, your proposal is rejected or will have to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they'll settle for less than the amount you owe them - it's normally a percentage of the debt - but allow me to 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 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 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 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 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 Mildura 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 get in touch with Bankruptcy Experts Mildura on 1300 795 575, or visit our website: bankruptcyexpertsMildura.com.au.