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

Bankruptcy Alice Springsis a complicated process, and you should 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 need to know about going bankrupt is there is no constraint on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy.

The very first thing you need to know 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 look for a hardship variation that raises the threshold amount, if you have costs in Alice Springs like medical, child care, serious travel to and from your job, or a situation where your spouse used to work but is no longer able to add to the family income.

Some of the intriguing parts of Bankruptcy is that your employer will not be told 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 provide $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 many more issues encompassing income and what is or isn't considered income - if you're not exactly sure, it's recommended to get experienced advice. The reason you 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 likely 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 so long as that doesn't take you over your threshold income limits.

If you believe that when it comes to Bankruptcy, your situation is more intricate, then please get expert advice in Alice Springs. I may sound like a broken record, but remember that it's always a smart idea to work through these options prior to 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 issues to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Alice Springs on 1300 795 575, or check out our website: bankruptcyexpertsAliceSprings.com.au.

Bankruptcy in Alice Springs - Are you going to get bitten?

When people in Alice Springs ask me about Bankruptcy, I let them know the classic 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 dies. 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 bite the boy despite his promise not to do so. The snake's reply was 'You knew what I was when you picked me up.

Getting the right financial advice in Alice Springs when it concerns Bankruptcy is a lot like that little boy's experience, laden with risk and danger, and usually skewed for the benefit of the individual providing the advice. In most cases you'll get bitten unless 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 fundamental 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 rather high and investing your money was very profitable. I spent a few years researching different investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had great suits and plush offices, they all seemed to exude confidence and have all the solutions. What struck me was that they all had an extremely different strategy of what I should do. This confused me a lot that it put me off the entire idea of choosing any of them.

I'm sure currently you have read enough on the internet to be totally mixed up about Bankruptcy and precisely 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 concerns in Alice Springs. Basically, you need to try and recognize what your overarching alternatives are, do your very own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Alice Springs for your requirements. Essentially, you have 3 options for who to turn to.

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

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

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

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 consult with Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: bankruptcyexpertsAlice Springs.com.au.

Bankruptcy in Alice Springs - Choices, Choice, Choices

When it comes down to Bankruptcy Alice Springs, there are a number of choices that we get given depending upon who we are, who we talk to, and exactly what 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 Alice Springs, a lot of the related information you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, 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 simple 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 free of charge. Please do not misunderstand me: if you consider your financial problems in Alice Springs can possibly be fixed by paying less interest, then go ahead and check out the options. Even a tiny amount of interest saved over years easily adds up.

Normally I find if you are reading this blog you've most likely attempted 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 defaults on it so not a single person will give 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 just won't make a great deal of difference,.

- You've very likely gotten to the stage where you've had 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 etc.

Personal Insolvency Agreements

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

Adaptability 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 featuring the government trustee ITSA, and not a private company 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 these guys work out 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 instead of cash. This can sound okay when it comes to the complications with Bankruptcy - that is until you discover that one of the difficulties with PIA's is that 75 % of the people you owe money to must agree on the deal. If they do not, your proposal is rejected or will have to be renegotiated.

Generally the people you owe money want all their money back plus interest. Sometimes they'll go for less than 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 truly 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 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 clever 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 Alice Springs 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 contact Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website:bankruptcyexpertsAliceSprings.com.au.