BANKRUPTCY

Personal Bankruptcy Options

Life will often throw us curveballs and as a result we can end up in a position where we are struggling with overwhelming debts.casino på nätet utan registrering These debts can be crippling to our Physical and Mental health, they can affect our relationships with family and friends and they can be a source of incredible stress because DEBT NEVER SLEEPS!

If you find yourself in this situation you are certainly not alone.

If you would like to do a Personal Evaluation to determine whether Bankruptcy is a good option for you, click below.

FREE PERSONAL EVALUATION – CLICK HERE

We live in extremely volatile times. The latest International Coronavirus Health Emergency has created economic instability on a level that most of us have never experienced in our lifetimes and we will not know the long term affects for some time yet.

Last year in Australia, over 28000 people declared themselves personally insolvent and filed for bankruptcy. Over the next few years we expect that this number will rise sharply given the International economic instability that these latest events have caused.

If you find yourself caught up in the Debt spiral and it seems the only way you are heading is down, it is time to take some action and get your life back. There is nothing better than a fresh Start and we can help you get one. If this sounds like your story then it’s time to do more.

There are a number of Personal Insolvency options available to you. These options are:

  • A Part IX Debt Agreement
  • A Part X Debt Agreement
  • Filing for Bankruptcy (The most common option)

It’s good to be informed!

Before you make a decision read below and understand what these options mean. Gaining knowledge on your options helps you make a more informed choice.

FREE PERSONAL EVALUATION – CLICK HERE

 

What is a Part IX Debt Agreement?

A Part IX (9) Debt Agreement is a legally binding agreement between you and your creditors (The people you owe money to) and can be a flexible way to come to an arrangement to settle debts without becoming bankrupt. NB: There is strict eligibility criteria for you to enter into a Part IX debt agreement.
How debt agreements work

  • You negotiate to pay a percentage of your combined debt that you can afford over a period of time.
  • You make repayments to one person, your Debt agreement administrator, rather than making payments to individual creditors.
  • After you complete the payments and the agreement ends, your creditors can’t recover the rest of the money you owe.

A debt agreement MAY be a suitable alternative to bankruptcy

  • It can benefit your creditors as they may receive more money than if you were to become bankrupt.
  • It can provide relief if you’re unable to manage your debts, but there are some consequences which may affect you.
  • Be aware that there are limits to the amount of debt and income you can have to be eligible.

Debt agreements are not:

  • consolidation loans or agreements to borrow money
  • able to release you from all types of debts—some debts you will still need to pay.

Before entering a debt agreement

Seek advice

Financial counsellors can help you and are available or every state and territory. Our services are free, independent and confidential. We can provide advice about your financial situation and recommend the best option for you to deal with unmanageable debt.

 

What is a Part X debt Agreement?

A Part X is also a type of personal insolvency agreement. Like a Part IX it is a repayment schedule which is negotiated with your creditors, but a Part X lends itself to people in a more complicated debt situation.

Unlike a Part IX Debt Agreement, there is no eligibility criteria for a Part X, which makes it suitable for people with high debt amounts and people who are higher income earners. Because the process is longer and more involved, it allows debtors to propose settling their debt in a reduced lump sum and other methods.

 

What is Bankruptcy?

Bankruptcy is a legal process where you’re declared unable to pay your debts and is the most common personal insolvency option . It can release you from most debts, provide relief and allow you to make a fresh start.

You can become bankrupt in 2 ways. These are:

  •  Voluntary Bankruptcy: This is where you decide to declare yourself Bankruptcy. To do this you need to complete an in depth Bankruptcy Form application but don’t panic, we can help you through this complicated process and take away all the stress of applying.
  • Creditors Petition: This is when someone you owe money to (a creditor) makes you bankrupt through a court process.

Bankruptcy normally lasts for 3 years and 1 day.

Bankruptcy trustee

When you become bankrupt you are appointed a trustee. A trustee is a person or body who manages your bankruptcy and helps to look after you through the process.

This can either be the Official Public Trustee (AFSA) or a Registered Private Trustee. You can choose which one you would like to use. To find out whether you would be better using a Public Trustee or a private trustee, complete the Evaluation form below.

Your obligations

When you are bankrupt:

  • You must complete a bankruptcy Application. This is a large report document that is required, wherein you provide a full statement of your affairs. We will help you complete this application.
  • you must provide details of your debts, income and assets to your trustee.
  • your trustee notifies your creditors that you’re bankrupt – this prevents most creditors from contacting you any more about your debts.
  • If you own large and / or expensive assets, your trustee may sell some of these to help pay your debts. (this DOES NOT include household items). If you have vehicles, houses, investments, etc. Complete the NO OBLIGATION Evaluation form below and we can help you understand what assets you can keep and what assets you can’t.
  • you may need to make compulsory payments if your income exceeds a set amount. (In most Bankruptcies this is not the case but it does affect some high income earners)

Before entering bankruptcy

Seek advice

Financial counsellors can help you and are available for every state and territory. Our services are free, independent and confidential. We can provide advice about your financial situation and recommend the best option for you to deal with unmanageable debt.

FREE PERSONAL EVALUATION – CLICK HERE

Here is some more information for you to read over.

What does Bankruptcy mean to me personally?

OK, so here are some of the facts. If you Voluntarily declare bankrupt you don’t need to go to court, get your name splashed in the newspapers or be publicly humiliated and made out to be a criminal. Bankruptcy simply and quickly enables ordinary people to get out of debt, so you personally won’t owe anything more on your credit cards, GST and tax, unsecured personal loans, Utility Bills, Telephone Bills, Unsecured fast cash loans and so on. Imagine, no more debt collectors, no more harassing telephone calls, no more threats, no more debt worries, no more debt stress. At last you can smile again and won’t be a stress ball to live with. You’ll breathe easier and your debt won’t always be on your mind because you won’t have it anymore. You’ll get your life back and your loved ones will get you back as well!

Facts about Bankruptcy
Some more good news. Rumour has it that once you declare bankrupt you have to pay back 50% of whatever you earn for the next 3 years…WRONG! There are what is called “Threshold Limits” meaning you can earn up to a certain amount before your income is touched. The LOWEST threshold limit is $59,331.00 per year and that will increase if you have dependents, but what’s even better is this amount is how much you can earn AFTER YOUR TAX HAS BEEN TAKEN OUT. Bankruptcy is there to try and help you to get back on your feet and on with your life and has been specifically put in place to alleviate the pressure of those who are suffering from Financial Stress. If this is you, then Bankruptcy may be for you as well.

Once you earn over your threshold limit, you split the difference 50/50 with your Bankruptcy Trustee while you are Bankrupt. In reality, that means that anyone declaring bankrupt can earn as much as they like during their bankruptcy.

So, you’ll be out of debt! Can you imagine that? In fact you may be able to start saving a deposit for something you’ve always wanted.

(Bankruptcy won’t cancel debts like child support, HECS and court imposed fines (speeding fines, parking fines etc).)

FREE PERSONAL EVALUATION – CLICK HERE

A Client writes

Here’s what a client wrote:

Thank you, thank you, thank you. I honestly believe you have saved my life. I felt as though the stresses of finances were so overwhelming that they were going to kill me. I couldn’t sleep and when I did get to sleep I woke up in the early hours of the morning, depressed and worried. I was always stressed and I had no life except worry. Now I am free. It has been one of the most liberating experiences of my life.
Thank you, thank you!
Chris

More Facts about Bankruptcy

If you have more questions about Bankruptcy such as:

  • Can I keep my car?
  • Can I keep my house?
  • Will it affect my job?
  • Can I travel overseas?

Or any other question you will probably find the answer in our FAQ (Frequently Asked Questions section. Click below to go to this section.

FREQUENTLY ASKED QUESTIONS

In my experience the overwhelming majority of people I have helped through Bankruptcy have fought and fought and fought to stay on top, but they just can’t do it anymore. Stay positive and know that a fresh start is possible.
Time and time again our clients tell us that they’ve really tried so hard to stay on top of their debts, but they just can’t do it anymore.  If that’s you, it’s OK, you’re not strange, you are just normal. Everyone hates debts stress but You don’t have to live in debt, life’s meant to be better than that. So get your life back. You’re meant to smile and dance like an idiot to your favorite song and jump on the bed, when did you last do that?

If you choose to go bankrupt using one of our services, we will assist you to get your life back and start again.

Bankruptcy really can give you a Fresh start, to get back on your feet, and get on with the good parts of your life without your mind space being taken up as to how you’re going to make it through the week financially. If you’re already in a “debt agreement” and can’t keep paying it, that’s fine, call us and we will help you out of it. It’s that easy.
So, take the next step. Complete the personal Evaluation and get some feedback. If bankruptcy is your best option we will tell you. If not, we will tell you, but you will never know till you start the ball rolling. Today is a good day to take back control and find your life again.

FREE PERSONAL EVALUATION – CLICK HERE