Is Bankruptcy Right for Me?

Bankruptcy is one of the hardest things anybody has to ever face. Making the best decision is not easy. That is why we have produced a free eBook – The Big Five – to help you make a well educated decision. At Bankruptcy Experts Adelaide we recommend you do not move forward with bankruptcy until you have read this, and you have the answers to the 5 big bankruptcy questions.

Is Bankruptcy Right for me
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Big 5 Questions

– Is going bankrupt right for me?
– Will I lose my job?
– How will my income be affected?
– Can I keep my house or car?
– Will I lose my business or can I still be self-employed?

If you are thinking about bankruptcy, having the ability to answer these questions is vital. When you have all this information then you will know exactly what will happen to your business and assets should you decide to file for bankruptcy. Do not hesitate to download our eBook for free and educate yourself today. Or, if your questions are more complicated, call us at Bankruptcy Experts Adelaide directly on 1300 795 575.

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bankruptcy expert ebook

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We offer a No Obligation Free Consultation in over 40 locations throughout Australia, Brisbane, Canberra, Sydney, Melbourne, Gold Coast, Adelaide, Perth, Darwin, Hobart, Sunshine Coast, Newcastle and Geelong. Feel free to download our e-Book now.

Bankruptcy Options

Bankruptcy vs
Debt Agreement

Is going bankrupt my only choice? No of course not you always have a choice, you may wish to consider a debt consolidation loan. However, the most popular alternative considered instead of bankruptcy is a Debt Agreement (Part IX). Study the graph to work out the relative advantages and disadvantages of Bankruptcy, Debt Agreements, and Personal Insolvency Agreements, so you can make an educated choice.

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Why Do Some Business Say Debt Agreements or Personal Insolvency Agreements?

There is a reason some bankruptcy services invest a lot on TV commercials … there is a lot in it for them if you select them … In a desperate bid for your custom, things rapidly develop into a cat fight, with one company turning against another. And everyone claims they are the best. We are not here to compete. Here at Bankruptcy Experts Adelaide we are here to educate you so you can choose for yourself.

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Debt Agreements

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Personal Insolvency Agreements

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Should I Consider a
Debt Consolidation Loan
?

A debt consolidation loan is often the best plan. What the plan does is to condense all the various loans into one, larger loan. There may be a fee to consolidate the debts. One of the biggest challenges to consider is your credit rating, typically people thinking about bankruptcy have a badly damaged credit rating so a debt consolidation loan is just not an option.

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Who Will Know About My Bankruptcy?

 

An individual’s privacy is a big deal when you file for bankruptcy. The days of your name being published in the paper as a bankrupt are long gone.
In fact, there are usually only four types of people who will know about your bankruptcy:

1.) The people you personally tell.
2.) Your creditors or the people you owe money to.
3.) People who request to access your credit file, such as when you make an application for a loan. (this involves you giving them authorisation first), Making an application for a loan is something you will not be doing for the 3 years you are bankrupt due to the fact that nobody will give you a loan while you are bankrupt.
4.) Anyone who looks you up on the National Insolvency Index (which people have to pay to access).

There is no necessity for you to worry, you are not a criminal and you have actually not failed. You are simply someone who wants to put an end to crippling debt and move on with their lives. At Bankruptcy Experts Adelaide, we are here to help. Download our Free ‘The Big 5’ e-Book for in-depth information about insolvency and your employment or give us a call on 1300 795 575.

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Bankruptcy and the Family Home

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If I File for Bankruptcy Can I Keep My House?

In a lot of cases the answer is yes. If losing your house is a major concern for you then the very best method to find the answer is to call us here at Bankruptcy Experts Adelaide on 1300 795 575. As soon as you tell us about your situation, we can provide you a really clear understanding of your options over the phone. Practically everybody is emotionally linked to their home; it is where the kids have grown up, it is where you indulge in life on a day to day basis. People frequently push themselves to the edge of insanity attempting to not lose the family home, presuming this is an unavoidable effect of bankruptcy.

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Suppose My House Has a Lot of Equity?
What Can I Do?

If your house has plenty of equity and you are still drowning in debt, there are still some possibilities accessible to you. In fact, this applies also to vehicles or other assets you may have. In this situation what you cannot afford to do is assume that everything will be okay. It is the bankruptcy trustee’s job to sell whatever assets you have when you file for bankruptcy and put that money towards your debts. Getting the wrong advice here could be disastrous! Before you take your next step get some assistance, at Bankruptcy Experts Adelaide we offer a free initial consultation, so call us today on 1300 795 575.

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What If My Partner’s Name Is on the Mortgage?

Frequently when a couple purchase a home a single income is often not adequate to get approval for the mortgage, so the bank or lender will usually have both of these partners sign up for the credit. When the house is bought both names are listed as shared tenants on the homes mortgage and the title deed of the property. Let us say Mick and Susie, who reside in regional SA, purchased a home 4 years ago for $400,000 with no deposit so their home loan was also $400,000. Mick is a plumber and needs to declare bankruptcy but Susie has a very good job teaching at a high school and does not need to declare bankruptcy. Unfortunately, the house has not increased in value in the 4 years they have owned it and they also have only managed to pay the interest on the mortgage during that time. So essentially, they still have a $400,000 mortgage on a home worth $400,000. Mick can then apply for bankruptcy and as long as they keep covering the mortgage, rates etc, they can continue to keep the house for the 3 years Mick is bankrupt.

This action will, in no way, affect Susie’s credit history rating or require her to go bankrupt at the same time. There is plenty to take in when it comes to residential properties and going bankrupt so if you have concerns about your house, do not hesitate about calling us at Bankruptcy Experts Adelaide on 1300 795 575.

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How Is Equity Determined?

This is the most vital part of this procedure. Why? Put simply, if you get it wrong you are going to lose your house. There are a variety of things you should understand here. Firstly, your gut reaction or assumption about the true worth of your property is probably generous. Most people expect their house is worth much more than it actually is. When you declare bankruptcy the trustee might ask how you calculated the price for your home. In some cases they might request more information about your valuation, possibly a rates notice, a real estate agency’s appraisal or a registered valuation. An useful technique would be to search www.realestate.com.au then click the ‘Sold’ tab on that particular site and search for the most recent home sales in your street or neighbourhood. This will help you to get some idea of the value of the market at the moment. Always keep in mind, the valuation is based upon a fast sale not a sophisticated real estate agent’s marketing project. Understanding this step is vital, at Bankruptcy Experts Adelaide we can provide you guidance before moving on, call us on 1300 795 575.

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What Factors Would Contribute to Losing the House?

Equity! If you are up to date with your monthly payments then the most significant issue in bankruptcy is equity. If you have $300,000 equity in your home and you have $100,000 worth of unpaid debt and no other means to pay the debt then the trustee sees your equity as a way to pay your debt and so they will most likely sell off your house to repay the unpaid debt and give you whatever funds remain from the sale.

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Will the Bank Let Me Keep My House Even If I’m a Bankrupt?

Why would the bank want bankrupt clients? Wouldn’t they wish to sell your house and not take the chance on you? Consider this, the bank that has generously offered you the money for your home is making a great monthly income in interest from you, month after month. Provided you keep up to date with your payments then the mortgage lender really wants you in your home at all costs. Having said that, you keeping your home is not the bank’s call. If a trustee makes a decision that there is sufficient equity in your house to liquidate it, they will force you and the bank to sell your house.

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What If I Have Received a Notice From the Tax Office?

One of the most important things to note is that YOU MUST NOT LET A TAX OFFICE NOTICE LAPSE. It will be best to get in touch with us at Bankruptcy Experts Adelaide on 1300 795 575 as soon as you get a tax notice. We can then help you work through the procedures as quickly as possible to get the most favourable outcome for you.

When we have assessed your needs, we can develop an action plan to help advise to you the best course of action. From this point, you can examine your options and select where you go from there.

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Bankruptcy and Employment

Will My Employer
Be Advised?

Normally, there is no good reason for your employer to be informed of your personal bankruptcy. When you make over the income threshold and you are asked to make an income payment, you will organize those payments yourself – it does not go through your workplace.

Will I Lose My Job If I File for Bankruptcy?

When bankrupt there is a distinction between presently being employed and applying for a new position. Rarely will you ever lose your job due to the fact that you have filed for bankruptcy. For example, it is difficult to get into the Defence Forces as an existing bankrupt, but they do not terminate your employment if you become bankrupt when you are already employed by them.

Each professional body has its own guidelines, and this varies from one state to another. Our advice is to speak directly to your industry-specific experts, who will know precisely how your unique circumstance works in SA. This is worth doing before moving forward with your bankruptcy, as it may be an important factor in your decision. Have a look at the chart below for a list of some occupations where seeking further, industry-related advice is a must. Some industries will not have a problem with your bankruptcy so long as it is all above board. Please do not hesitate to call us at Bankruptcy Experts Adelaide on 1300 795 575 with any questions you have.

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Bankruptcy Income Thresholds

How Much Can I Earn When I’m Bankrupt?

In South Australia there is no restriction on just how much you can make when you are bankrupt. Before filing for bankruptcy, however, it is important to consider your salary and make certain bankruptcy is the best option for you before proceeding. Find out just how much you can make before you need to start paying funds to your creditors via your trustee. There are also other things to consider with bankruptcy income such as Child Support, Hardship & Self Employment. If you are worried about this just call us at Bankruptcy Experts Adelaide on 1300 795 575.

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Bankruptcy and Income

Every year in March and September the Government audits income threshold figures based on the latest cost of living. This means that the amount of money you are able to make (net income, after tax and child support) while bankrupt is always changing, and your trustee will need to determine your real net income. This real net income figure will depend upon various elements such as child support, salary sacrifice, superannuation payments and business expenses.

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What Can My Partner Earn If I Go Bankrupt?

In most cases in South Australia, your partner is considered a completely separate entity in the eyes of the law and will not be affected financially by your bankruptcy. When it comes to a joint loan, you should first get further advice. Call Bankruptcy Experts Adelaide today for an obligation-free chat on 1300 795 575.

Partner Bankruptcy
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Who Is Considered a Dependent?

A dependent can be anybody, of any age, who resides with you and earns no more than $3,708 per year. If you have children who do not live with you full-time, and you pay child support for them, you cannot class them as dependents. By the way, Centrelink payments are considered income for your dependents.

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What If My Spouse or Partner and I Both Need to Go Bankrupt?

If, as a couple, you both have to declare bankruptcy and you have no dependents, then you are permitted to earn up to $1,083.01 net each. The same income rules apply to each person individually. If you have kids refer to the income thresholds in the chart above. If you have additional concerns call us at Bankruptcy Experts Adelaide on 1300 795 575.

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