Bankruptcy Advice in Hervey Bay – Will my income be altered if I go bankrupt?

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Bankruptcy Advice Hervey Bay is a intricate process, and you ought 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 regulation 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 Advice.

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

You can make an application for a hardship variation that increases the threshold amount, if you have expenses in Hervey Bay like 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 household income.

Some of the interesting parts of Bankruptcy Advice is that your employer will not be alerted 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 thought about, for example if you give $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 a lot more issues involving income and what is or isn’t regarded as income – if you’re not exactly sure, it’s best to get skilled advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund may 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 as long as that doesn’t take you over your threshold income restrictions.

If you feel like when it comes to Bankruptcy Advice, your case is more intricate, then simply get expert advice in Hervey Bay. I may seem like a broken record, but bear in mind that it’s always a good idea to overcome these options before 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 questions to ask about Bankruptcy Advice, then feel free to contact Bankruptcy Experts Hervey Bay on 1300 795 575, or explore our website:


Going Bankrupt in Hervey Bay – Choices, Choice, Choices

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When it comes to Going Bankrupt in Hervey Bay, there are a load of choices that we get given depending on who we are, who we approach, and what exactly has happened. Among the most common confusion I see with Going Bankrupt is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Going Bankrupt in Hervey Bay, a lot of the information you receive on this issue will reflect the interests of the advice giver. That is why, if you call a debt consolidation firm, I can assure you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for aiding you wrap all of your credit card and personal loans into just one neat and tidy package.

I hate to tell you this but they aren’t going to be doing it free of charge. Please do not misunderstand me: if you believe your financial troubles in Hervey Bay can be fixed by paying less interest, then go ahead and look into the possibilities. Even a tiny amount of interest saved over years quickly adds up.

Usually I find if you read this blog you’ve undoubtedly attempted to consolidate your debts already and come to the following realisations like these:

  • Your credit rating is not good, and your credit file definitely has defaults on it so not a single person 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 on a bit of interest simply won’t make a great deal of difference,.
  • You’ve undoubtedly reached the stage where you’ve had enough, you’re emotionally fatigued, you can’t go on another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes to Going Bankrupt in Hervey Bay, what’s the 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 – might I add – regulated trustee including the government trustee ITSA, and not a private company that advertises on TV. Basically this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts work out a deal on your behalf. You can offer 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 acceptable when it comes to the issues with Going Bankrupt – that is up until you discover that one of the difficulties with PIA’s is that 75 % of the people you owe money to will need to agree on the deal. If they do not, your proposal is denied or will need to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they’ll go for under the amount you owe them – it’s generally 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 in fact settle for.

Most of the time 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 Going Bankrupt and insolvency I’ve heard of creditors choosing 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 clever 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 Hervey Bay aren’t going to get that lucky!

If you want to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to get in touch with Bankruptcy Advice Hervey Bay on 1300 879 867, or visit our

Going Bankrupt in Hervey Bay – Changes that can help Small Business and Entrepreneurs


Do you have knowledge of just how much Going Bankrupt in Hervey Bay is changing? The Australian Government in late 2015 suggested some inherent changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. At this time, there is a minimum amount of time that you must stay bankrupt; however, this 3 year period may very well be reduced down 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 recommended 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 updates to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie went on to say in the Financial Review that guarding family assets was necessary 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 Behaviour

The controversy about this Going Bankrupt issue in Hervey Bay that some come up with is that this modification will only push fraudulent behaviour opening Pandora’s box so to speak for the unscrupulous to exploitation of the bankruptcy system. We have looked into 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 recommendations to change the effects of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Hervey Bay, I have a decent share of practical experience when it concerns Going Bankrupt. And having dealt with thousands of bankruptcy cases in Hervey Bay I have never caught someone abusing the system or acting in an irresponsible way as to exploit the insolvency laws in Australia. When it comes to Going Bankrupt, each week I help a small business owner or entrepreneur look at the very complex task of bankruptcy, not once have I felt they are happy about it. The standard small business owner or entrepreneur in Hervey Bay does not start out taking enormous financial risks with the intention to fail. The media loves citing the apparent abuse that will be rampant if these changes occur, what a joke!

A Win for Small Business

These proposed changes will be good for often the best and brightest in Hervey Bay not get tossed out of the game financially for financial decisions often outside of their control. Most small business owners I help with Going Bankrupt, are hardworking, tax paying, employers keeping this country going.

There certainly is a fine line with what exactly the government is trying to do here, because they are trying to balance helping individuals who have made decisions out of their control, and deterring people from making blunders that land them in trouble and as a result an issue of Going Bankrupt. However you likewise don’t want to get rid of the experience and knowledge that business owners have. You definitely don’t want to smash 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 well established companies have long been criticised for their failure to innovate – let’s face it they would be more likely to do so if the risks of insolvency were reduced because directors are worried they’ll be personally accountable in an insolvency arrangement if the new venture doesn’t work out.

The government’s proposed ‘safe haven’ changes for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Going Bankrupt. I can not imagine, that these alterations will be harmful to Australia’s economy, indeed 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 extensive. When it comes to Going Bankrupt in Hervey Bay not a day goes by where I don’t find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Going Bankrupt helps save lives, and it could save yours. If you are in need of some assistance with your debts in Hervey Bay or are just thinking of Going Bankrupt, feel free to contact us here at Hervey Bay Bankruptcy Centre on 1300 795 575, or visit our website:WWW.

Going Bankrupt in Gold Coast – Are you going to get bitten?


When people in Gold Coast ask me about Going Bankrupt, I let them know the simple 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 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 in the end attack the boy despite his assurance 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 Gold Coast when it relates to Going Bankrupt is a whole lot like that little boy’s experience, laden with risk and danger, and typically skewed for the benefit of the person supplying the advice. Often 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 fundamental to Going Bankrupt. 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 fairly high and investing your money was rather profitable. I spent some time researching different 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 nice suits and plush offices, they all appeared to exude confidence and have all the solutions. What struck me was that they all had a very different idea of what I should do. This frustrated me a lot that it put me off the entire idea of choosing any of them.

I’m sure currently you have read more than enough on the internet to be totally overwhelmed about Going Bankrupt and precisely what to do. It would probably be easier for me to help you learn about the nature of the financial snakes you could be picking up while you are attempting to get to the bottom of your financial troubles in Gold Coast. Basically, you have to try and comprehend what your overarching alternatives are, do your own research into where to proceed with your plan for Going Bankrupt, and then approach what you feel is best in Gold Coast for your needs. Essentially, you have 3 options for who to turn to.

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

Another possibility you may consider is your accountant – they are incredibly helpful and vital to the process of operating your business, but for the most part, when you are thinking of Going Bankrupt, your accountant won’t be much help to you at all.

Your best option? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you should understand when it comes to Going Bankrupt.

If you wish to find out more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to consult with Gold Coast Bankruptcy Centre on 1300 795 575, or visit our website: