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

Bankruptcy Lismore is a confusing process, and you ought to 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 restraint 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 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 portion 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 apply for a hardship variation that increases the threshold amount, if you have expenses in Lismore such as medical, child care, significant travel to and from work, or a scenario where your partner 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 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 give $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 many more issues involving income and what is or isn't thought of as income - if you're unsure, it's a good idea to get specialist advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable 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 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 expert advice in Lismore. I may sound like a broken record, but bear in mind that it's always a good idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you wish 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 Lismore on 1300 795 575, or visit our website: bankruptcyexpertsLismore.com.au.

Bankruptcy in Lismore - Are you going to get bitten?

When people in Lismore 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 view one last sunset before he passes away. The boy was reluctant, but the rattlesnake vowed not to bite him in exchange for the ride. They went together only for the snake to ultimately 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.

Obtaining the right financial advice in Lismore when it pertains to Bankruptcy is a lot like that little boy's encounter, laden with risk and danger, and generally skewed for the benefit of the individual giving the advice. Often 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 getting financial advice as a teenager, and it has been key 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 fairly high and investing your money was rather profitable. I spent a long time researching many 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 nice suits and plush offices, they all seemed to exude confidence and have all the solutions. What hit me was that they all had a really different strategy of what I should do. This puzzled me so much that it put me off the whole idea of selecting any of them.

I'm sure by now you have read more than enough on the internet to be totally bewildered about Bankruptcy and precisely what to do. It would probably be easier for me to help you understand the nature of the financial snakes you may be grabbing while you are attempting to get to the bottom of your financial problems in Lismore. Basically, you have to try and comprehend what your overarching options are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Lismore for your requirements. Essentially, you have 3 options for who to turn to.

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

Another option you may think about is your accountant - they are incredibly useful and vital to the task of managing your business, but for the most part, when you are considering Bankruptcy, your accountant won't be much help to you anymore.

Your best bet? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you should know when it comes to Bankruptcy.

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 Lismore on 1300 795 575, or visit our website: bankruptcyexpertsLismore.com.au.

Bankruptcy in Lismore - Choices, Choice, Choices

When it comes down to Bankruptcy Lismore, there are a bunch of options that we get given depending on who we are, who we talk to, and what exactly 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 Lismore, most of the help and advice you receive on this topic 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 all of your credit card and personal loans into one neat and tidy package.

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

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

• Your credit rating is no good, and your credit file definitely 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 small amount of interest simply won't make a great deal of difference,

• You've most probably reached the stage where you've had enough, you're emotionally worn down, 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 relates to Bankruptcy in Lismore, 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 organization that advertises on TV. Essentially this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys mediate 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 rather than cash. This can sound fine when it comes to the issues with Bankruptcy - that is up until you realize that one of the problems with PIA's is that 75 % of the people you owe money to will have to agree on the deal. If they don't, your plan is rejected or will need to be renegotiated.

Generally the people you owe money want all their money back and also interest. Sometimes they'll go 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 actually settle for.

In many cases you'll have to pay back 100 % of the debt owed. This is not 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 settling 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 brilliant 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 Lismore aren't going to get that lucky!

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