Bankruptcy in Melbourne - Will my income be influenced if I go bankrupt?

Bankruptcy Melbourne is a complex process, and you need to make sure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you need to know about going bankrupt is there is no restriction on how much you can earn. However, I will mention that your income is a major consideration when working through when it comes to Bankruptcy.

The first thing you need to learn about this area of Bankruptcy is the amount 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 amount you earn per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can request a hardship variation that increases the threshold amount, if you have financial commitments in Melbourne such as medical, child care, significant travel to and from your job, or a situation where your partner used to work but is not able to support the family income.

Some of the interesting parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always looked at in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you give $5,000 child support each year and you have no dependents living with you then your altered net income limit will be $55,332.10.

There are many more issues covering income and what is or isn't considered income - if you're unsure, it's ideal to get qualified advice. The reason you must consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically sensible 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 chip in 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 limitations.

If you think when it comes to Bankruptcy, your case is more complex, then please get professional advice in Melbourne. I may seem like a broken record, but remember that it's always a good idea to work through these options before declaring bankruptcy, due to the fact that once you have filed the paperwork it's too late to change your mind.

If you would like to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Fresh Start Solutions Melbourne on 1300 818 575, or go to our website: freshstartsolutions.com.au/bankruptcy-Melbourne

Bankruptcy in Melbourne - Choices, Choice, Choices

 When it comes to Bankruptcy Melbourne, there are a bunch of options that we get given depending upon who we are, who we talk to, and just what has happened. One of 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 Melbourne, most of the facts you receive on this subject matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can assure 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 every one of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but these people won't be doing it for free. Please do not misunderstand me: if you feel your financial troubles in Melbourne could be solved by paying less interest, then go on and check out the possibilities. Even a tiny amount of interest saved over years quickly adds up.

Usually I find if you read this blog you've probably tried to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is not good, and your credit file definitely has defaults on it so no one will give you a loan, consolidated or otherwise,.

• By the time you work all of it out, you're so far down a hole that saving a little bit of interest just won't make a great deal of difference,.

• You've undoubtedly 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 etc.

Personal Insolvency Agreements

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

Flexibility 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. Ultimately this method resembles 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 give a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets as an alternative to cash. This may sound okay when it comes to the issues with Bankruptcy - that is until you realise that one of the obstacles with PIA's is that 75 % of the people you owe money to must come to an understanding the deal. If they do not, your plan is rejected or ought to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they'll go for beneath the amount you owe them - it's typically a percentage of the debt - but allow me to stress this part: 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 really settle for.

In most 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 opting for less 80 % on rare occasions, but that usually only occurs with a public company going 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 structures in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Melbourne aren't going to get that lucky!

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 Fresh Start Solutions Melbourne on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Melbourne

Bankruptcy in Melbourne - Are you going to get bitten?

When people in Melbourne 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 see one last sunset before he passes away. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They journeyed together only for the snake to ultimately bite the boy despite his vow not to do so. The snake's answer was 'You knew what I was when you picked me up.

Getting the right financial advice in Melbourne when it comes to Bankruptcy is a whole lot like that little boy's journey, fraught with risk and danger, and usually skewed for the benefit of the person supplying the advice. In many cases you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been central to Bankruptcy. I'd been keeping my nose to the grindstone 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 quite high and investing your money was quite profitable. I spent time researching various investment options, and I went to visit a few financial advisors. It was crystal clear 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 answers. What struck me was that they all had a truly different strategy of what I should do. This baffled me so much that it put me off the entire idea of picking any of them.

I'm sure by now you have read more than enough on the internet to be totally lost about Bankruptcy and what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you might be grabbing while you are trying to get to the bottom of your financial concerns in Melbourne. Essentially, you need to try and comprehend what your overarching choices are, do your very own research into where to proceed with your plan for Bankruptcy, and after that approach just what you feel is best in Melbourne for your needs. Basically, you have 3 options for who to turn to.

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

Another choice you may think about is your accountant - they are incredibly useful and vital to the process of running your business, but for the most part, when you are thinking about 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 basically all you should understand when it comes to Bankruptcy.

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 consult with Fresh Start Solutions Melbourne on 1300 818 575, or visit our website:freshstartsolutions.com.au/bankruptcy-Melbourne

Bankruptcy in Melbourne - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have an idea of how much Bankruptcy in Melbourne is changing? The Australian Government at the end of 2015 recommended some progressive changes to the Bankruptcy Laws in Australia. Among the most significant of these is the length of time that a person is bankrupt for. Now, there is a minimum amount of time that you must stay bankrupt, but, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be pretty important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 suggested that "the proposed changes to ease the burden of bankruptcy laws didn't go far enough and the government should adopt US-style laws to protect the family home".

These adjustments to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that guarding family assets was essential because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws discouraged investors from supporting start-ups, and therefore mentoring had been "driven out of the system".

"They naturally find it very intimidating themselves personally and with their assets at risk in a risky early-stage deal, but with their own money in the deal and a lightened-up provision I think we 'd probably see more willingness. It could be more important than the money.".

Fraudulent Behavior.

The debate about this Bankruptcy issue in Melbourne that some make is that this variation will only motivate fraudulent behavior opening pandora's box so to speak for the unscrupulous to abuse of the bankruptcy system. We have taken a look at the minimum, but on the other side of the matter, The government is not submitting to change the maximum term of 8 years if it deems a bankrupt has acted in an unethical or fraudulent way, and there are no suggestions to change the penalties of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Melbourne, I have a decent share of knowledge when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Melbourne I have never struck someone abusing the system or acting in a reckless way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur go through the very hard task of bankruptcy, not once have I felt they are happy about it. The ordinary small business owner or entrepreneur in Melbourne does not start out taking enormous financial risks with the intention to fail. The media really loves citing the apparent injustice that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These suggested changes will be good for often the most effective and brightest in Melbourne not get rejected of the game financially for financial decisions often outside of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, managers keeping this country going.

Truth be told there is a fine line with what exactly the government is trying to do here, since they are trying to balance helping individuals who have made decisions out of their control, and dissuading people from making blunders that land them in trouble and as a result an issue of Bankruptcy. However you also don't want to wipe out the experience and knowledge that business owners have. You absolutely don't want to shatter people simply because they have had an honest failure in a large or small start-up venture that has not gone well.

At the big end of town large organized companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of insolvency were minimized because directors are worried they'll be personally accountable in an insolvency arrangement if the new endeavor doesn't work out.

The government's suggested 'safe haven' modifications for directors of companies will enable Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I can not imagine, that these alterations will be destructive to Australia's economy, in fact these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is substantial. When it comes to Bankruptcy in Melbourne not a day passes where I don't hear the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you are in need of some help with your debts in Melbourne or are just considering Bankruptcy, feel free to contact us here at Fresh Start Solutions Melbourne on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-melbourne