Are your personal or business money troubles getting out of control?

Are your personal or business money troubles getting out of control?

Our company provides straight-forward bankruptcy advice. At Bankruptcy Penrith we recognize that the very thought of bankruptcy is scary, and if it becomes a reality it is positively bewildering. We understand that you are simply feeling very overwhelmed, cornered and even like you have no possibilities left, and so we would like to help assist you through the process.

But here’s the thing – you’ve actually endured the hardest part of the process – you have actually taken that first step towards placing your personal and/or business debts behind you and carrying on with your life; you’ve found us.

The next step is undoubtedly to find out if bankruptcy is truly right for you. There is definitely a few details you have to know well before making that choice so we recommend that you continue searching around this site, it has lots of great information, or you can just grab the phone and call us on 1300 818 575.

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Are your personal or business debts getting out of control?

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You Can Be 100 % Debt Free!

Can you picture a future free from lenders’ harassing phone calls as well as looking forward to the mail once again? There really are a few things you should certainly know before you make that complicated decision. Firstly, the quicker you take action then the more choices you are going to have.

5 Questions you must answer before you declare yourself bankrupt.

There are 5 vital questions you will need to have an response to before you declare bankruptcy. If you wish to know exactly what they are, feel free to download our free e-book on the right hand side of this web page. This e-book will focus on these big 5 questions specifically and give you peace of mind that you are doing the best thing.

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Get your FREE copy of the Big 5

* We pledge not to bombard you with emails and phone calls when you apply for our free e-book. Really, we vow to only call you one time to see if we are able to help you further and that’s it.

Insolvency Options

Is declaring bankruptcy my only real option?

No! There really are many options readily available to you. Below is a graph detailing the perks and disadvantages of the different debt options offered. This diagram is really by absolutely no means an full-scale resource, but it will help you to make a well-informed choice.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

What is a Personal Insolvency Agreement?

This is an adaptable understanding involving you and your lenders. It is supervised through a trustee who governs how much you will need to pay and when you have to pay. Once those conditions have actually been met you are generally then free to begin again with a new beginning.

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What is a Debt Agreement?

A debt agreement permits a debtor to enter into an understanding with their lenders to satisfy their unpaid debts without being made bankrupt.

You cannot take part in a Debt Agreement if you have been bankrupt, or if you are already in a debt agreement. Also keep in mind that there are additionally income restrictions, as well as restrictions on property value and unsecured debt value. If you want to know more please contact us on 1300 818 575.

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Why do some business say Debt Agreements or Personal Insolvency Agreements

The reason you find plenty of expensive commercials on the TV in the Adelaide area inviting you to go for one of these alternatives is that there is lots of cash in it for the companies that administer them. You will notice, if you havent already, that every company has the tendency to give (biased) advice

according to the product that they offer. For instance, Debt Agreement Companies ridicule bankruptcy companies and so it goes with much of the financial services industry.

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Should I consider a Debt Consolidation Loan?

There are sometimes the very exceptional conditions where a debt consolidation loan is the most beneficial idea. Usually the issue with them is that all it is really doing is packaging 5-15 various debts into one sizable debt. If you are battling to pay off all your various loans now, then why do you believe it will be magically easier to have one substantial bill? 9 times out of 10 it is just not going to make it easier. Just to make all of it worse you usually need to pay up front for the ‘pleasure’ of this choice. If you want to get some clarification or more information on this, then just simply contact us on 1300 818 575 or go and download ‘The Big 5’ e-Book.

Bankruptcy and the Family Home

If I apply for bankruptcy can I keep my house?

In many cases the answer is yes. If this is a serious concern for you then the most efficient way to get the solution is to contact us here at Bankruptcy Experts Penrith on 1300 818 575 and once we have an understanding about your circumstances we can offer you a clear picture over the telephone. Practically everybody is emotionally connected to their home; it’s where the kids have grown up, it’s where you enjoy life on a day to day basis. People usually think it’s an inevitable consequence of bankruptcy and consequently they press themselves to the verge of madness to not lose the family house.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

Will the bank let me keep my home even if I’m a bankrupt?

Why might the bank like bankrupt customers? Wouldn’t they want to sell your home and not take the risk? Keep in mind – the bank that has generously lent you the money for your house is making good money each month in interest from you, month in and month out. As long as you always keep up to date with your mortgage payments then the bank wants you in there at all costs. Nevertheless it is usually not the bank’s call – if a trustee thinks that there is plenty of equity in your house the trustee will force you and the bank to sell off your home.

What factors would contribute to losing the home?

Equity! If you are up to date with your monthly payments then the most important issue is equity. A trustee has a obligation to gather up as much money in order to help cover your debts once you go bankrupt. Equity is the key here. If you have $300,000 equity on your property and you have $100,000 worth of debt and no other way to settle the debt then the trustee sees your equity as a way to repay your debt and so they will sell your house to repay the debt and give you whatever money is left from the sale.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

How is equity determined?

Many individuals are not quite confident about what equity is, and how it is determined– but it is absolutely important to determine considering that if you understand, it can mean the difference between keeping and losing your home. There are a few things you ought to know here. To begin with, your gut reaction or belief about the real worth of the property is most likely far too generous. The majority of people presume their house is worth more than it actually is.

Secondly, when you apply for bankruptcy the trustee may ask about how you established your price for the house. Sometimes they will want more information about your valuation, maybe a rates notice or a real estate agency’s appraisal or a registered valuation. A simple strategy would certainly be to search then click on the ‘Sold’ tab on that site and look for the latest house sales in your community or area. This will help you get some concept of the reality of the market right now. Bear in mind, the valuation is based on a quick sale not a slick real estate agent’s advertising and marketing campaign. So If you really want a good idea, I would certainly recommend getting a valuer and asking them to give you 2 values for your home, one as a typical sale, and the other as a ‘quick sale’. This will give you a far better awareness for your home’s worth. Knowing this step is crucial, so get some advice before going ahead, call us on 1300 818 575.

What happens if my Partners name is on the Mortgage?

Often when a couple buy a home one income just isn’t enough to secure the loan, so the bank/lender will have both partners sign up for the loan. As soon as the house is purchased both names are on the mortgage from the bank and the title deed of the house as joint tenants.

Let’s say Mick and Susie purchased a house 4 years ago for $400,000 without any deposit so their mortgage was also $400,000. Mick is an electrician and has to go bankrupt but Susie has a good job teaching high school and doesn’t need to go bankrupt.

Sadly, the house has not improved in price in the 4 years they have used it and they also have merely managed to pay interest on the loan during that time so essentially they still have a $400,000 mortgage on a house worth $400,000.

Mick can then declare bankruptcy and just as long as they continue paying the mortgage, rates etc. they can continue to keep the house for the 3 years Mick is bankrupt. This step will, in no way, affect Susie’s credit rating or force her to declare bankruptcy also. There is quite a lot to think about when it comes to houses and bankruptcy so if you have concerns don’t hesitate to phone us about your house on 1300 818 575.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

What if My House has a lot of Equity what can I do?

If your house has a lot of equity and you are nevertheless drowning in debt, there are still a number of options readily available to you– it could be complicated, however the significant step is to talk to an expert to try and get ahead of it. In fact, this concerns cars or other assets you may have as well. What you can not afford to do is assume that everything will be ok. It is the bankruptcy trustee’s job to sell just about any assets you have when you file for bankruptcy and put that money towards your debts. Getting this wrong will be catastrophic! Before you take your next step get some advice. Our company provides a free, initial consultation; just call us today on 1300 818 575.

Bankruptcy and Employment

Will my company be told?

Typically there is no good reason for your workplace to be advised of your bankruptcy. In circumstances where you earn more than the threshold amounts of income while you are bankrupt and you are required to make an income payment, you organise those payments yourself, it doesn’t go via your boss.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

Who will know about my bankruptcy?

There are four groups of people that will learn that you are bankrupt.

  1. Individuals that you tell
  2. Your creditors or people you owe money to
  3. Individuals that see your credit file while youre bankrupt. The only way this will happen is if you sign a privacy form for them to access your credit history. You only ever do this when you apply for a loan.
  4. You will be listed on the National Insolvency Index on the internet somewhere. Its hard to find and people need to pay to see if someone is bankrupt on it.

At Bankruptcy Experts Penrith, we are fully conscious that there is nonetheless a stigma attached to bankruptcy. We are aware of this problem and we can help to make sure that if you declare yourself bankrupt that you don’t need to go to court, get your name in the newspapers or be publicly made out to be a criminal or some kind of failure. We can help ensure that bankruptcy is swift and easy. In fact, the entire process will only take a few days. It makes it possible for the common person to get out of debt and on with their lives. For more detailed information about bankruptcy and your job, download ‘The Big 5’ e-book.

Will I lose my job if I file for bankruptcy?

The answer to the question is – yes, but only in some cases. The issue with some jobs isn’t that you just can’t do the job any more, it’s more an issue of professional bodies or associations that view bankruptcy in a dim light and can make it problematic for you.

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What we would definitely suggest is that you do your own research here. It will make a big difference if you check out this process before declaring bankruptcy considering that may help you decide. Check if your job is on the diagram below. If it is, we suggest talking to them personally and explaining your scenario. A few organisations won’t have a problem with your bankruptcy provided that it wasn’t accompanied by shady or suspicious behaviour. If you think your employment may be affected by your possible bankruptcy call us here at Bankruptcy Experts Penrith on 1300 818 575.

Bankruptcy Income Thresholds

What amount can I make when I’m bankrupt?

There are actually no restrictions on the amount of you can earn, however if you make over a certain amount, some of the excess can be taken by the trustee to payoff your creditors. This means that you cannot be refusing to pay your debts and still pull in a 6 figure salary– it just wouldn’t be fair to the many people you owe money to. So how much can you earn before you start paying back money to your creditors via your trustee?

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

Bankruptcy and Income

First of all, it is important to know that changes are coming to the world of bankruptcy. If you should know what is happening then focus now. Since March 2016 there have been changes to the Income Threshold amounts. This shows that there are modifications to just how much money you can keep when bankrupt. This is your net income after tax and child support (if applicable) are deducted. If you’re in a business when bankrupt then, by all means, it’s also net (after tax) of business spending, which is frequently calculated annually.

Your net income may be moderated to take into account things like salary sacrifice and sizable superannuation payments etc. Your net income might also allow for more unusual costs sustained as a result of being employed. As an example, if you are subjected to an uncommonly high amount of travel costs to get to and from your job this can in some cases also be taken into consideration. Your bankruptcy trustee has to ascertain your real net income, according to the bankruptcy rules.

The income threshold figures are also per person and are adjusted by the Government each and every March and September to allow for the movement in the cost of living.

Exactly what can my partner earn if I go bankrupt?

Generally there is no limit to what your spouse/partner can earn. There are a few ramifications that must be thought about in some circumstances, but in most cases your partner is a totally distinct legal entity and will not be influenced financially when you file for bankruptcy. Just as a word of caution – this could alter if you have joint loans together, so take care about the implications of that. If you are unsure just call us on 1300 818 575.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

Who is considered a dependent?

This could be any person, of any age, that lives with you and earns under $3,343 per year. If, in the case you have a child or children that you give child support for and they don’t live with you full-time, then you can not claim these children as dependents.

What happens if my spouse or partner and I both need to go bankrupt?

If a couple have to both file for bankruptcy and you have no dependents then you can each earn $1,048.25 net. A practical way to understand it is the same income rules apply for each person individually.

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Self Employment & Bankruptcy

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Will I lose my small business if I go bankrupt?

The basic answer is no, you do not have to but you do need to get the best guidance. Business insolvency laws are very involved and you ought to tread carefully if you wish to continue to be self-employed.

You may actually recognise that you can not be the director of a Pty Ltd Company if you are bankrupt. Even so, that doesn’t definitely mean you can’t run your very own business and use staff etc .

Suppose I have both Business and Personal Debts?

If you are a businessmen and you have a blend of personal and business debts then it is really possible to have most, or even all, of the debts erased with bankruptcy. Don’t forget this is a challenging process and needs special attention. The reality is, personal bankruptcy will not automatically indicate business bankruptcy as well.

No matter if you manage your business as a Sole Trader, Partnership, Company or Trust we can really help guide you through your options. Feel free to call us on 1300 818 575 for a no obligation FREE consultation.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

Should I put my company into liquidation?

Among the main reasons you may wish to think about liquidation instead of bankruptcy is due to the fact that if you liquidate your company, it doesn’t inevitably mean you have to go bankrupt. In Australia, small businesses that become insolvent have a few alternatives, for example, liquidation, voluntary administration and so forth. If you need to know more call us on 1300 818 575.

What effect will bankruptcy have on my business?

There are restrictions for business owners that are bankrupt. For instance, as a bankrupt company owner you can be in your own business as a sole trader only. For a number of small business owners, bankruptcy can have an effect on their ability to run the business due to the licensing concerns. For instance, a builder with a builder’s license can not actually continue to use that license for the 3 years he or she is simply bankrupt.

There are actually other implications for business owners whilst bankrupt that should be considered. In case you have to know even more about this please feel free to call us for a no responsibility, free consultation on 1300 818 575.

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Insolvency Penrith,Bankrupt Penrith,Bankruptcy Penrith

Isn’t it illegal to run an identical business after bankruptcy?

It could be. There are factors when and if you declare bankruptcy as a small business owner. You can not run up heaps of debt in your business, then go bankrupt and then open the doors the next day like nothing has taken place. There are laws in effect to avoid these ‘Phoenix companies’ rising out of the ashes of an old company. Don’t get overly worried about what you can and can’t do as a company owner; just get the right advice by calling Bankruptcy Experts Penrith today on 1300 818 575.

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