Going Bankrupt in Shepparton – does it matter if it is voluntary?

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When it comes to Going Bankrupt in Shepparton, often people aren’t aware that there are both voluntary, and involuntary bankruptcy – both have unique methods and rules.

Involuntary bankruptcy takes place when someone you owe money to applies to the court to declare you bankrupt. Generally when you get one of those notices, you have normally 21 days to pay all the debt. If you do not, then the creditor returns to the court and asks the court to issue a sequestration order that declares you bankrupt. A trustee is appointed, and then you have 14 days to get the documentation in and then you are bankrupt.

You can contest a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to avoid it going to the next level. Apart from the way you became bankrupt there is in fact no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy – once you are simply declared bankrupt, they’re administered to in the same way.

However, when it comes to Going Bankrupt for this, the stress, torment and fear that accompanies this process is incredible. If you think you are in all likelihood to be made bankrupt by someone, get some guidance and act on that advice. Generally I’ve found it’s always far better to know what you can and can’t do before you have someone bankrupt you. Once you are bankrupt, it’s generally far too late.

Voluntary Bankruptcy

Nevertheless, when it comes to Going Bankrupt, sometimes there are times that it is the most ideal option. So you may want to ask yourself, ‘when should I consider voluntary Bankruptcy?’.

This question is not the very same for every person of course, but commonly I find that one way you could work it out is to figure out just how long it will take you to pay each of your debts – if its longer than 3 years (the period you are declared bankrupt), then this may really help you make that decision, and help you to understand Going Bankrupt.

Once, I had an 80 year old pensioner, who spoke to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the level she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can really help you think this through. If you move house and forget to pay your $30 phone bill for 6 months more, it’s very likely the telephone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file truly damaged for that period of time – and all of this will affect how you have to approach Going Bankrupt.

In many ways, the ease with which companies/credit providers can default your credit file is unfair. The punishment doesn’t seem to equate to the crime in my book. So if you actually have defaults on your credit report for 5 years, remember that bankruptcy is on your credit file for a total 7 years then its erased completely.

So if your credit rating is a big issue in trying to decide whether to participate in a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest variation is that with a DA or PIA you pay back the money and still have it on your file for 7 years.


I have mentioned the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element more people are afraid of when they come to me to review their financial situation and Going Bankrupt. The other side of crime and punishment equation is bankruptcy, and in this specific country the provisions are very generous: you can go bankrupt owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared with countries like the United States, our bankruptcy laws are quite generous.

I don’t pretend to know why that is but a few hundred years ago debtors went to prison. These days I suppose the government thinks the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which costs the taxpayer anyway.

Bankruptcy wipes all of your debts including ATO debts with the exception of a few things:.

  • Centrelink Debts, Court Fines like parking and speeding fines.
  • HECS or Fee Help loans.
  • Money to take care of a car accident if the car was not insured.

There is a lot more that can be said about this and Going Bankrupt in general but the purpose of this blog was to help you decide between a few available options. When getting some advice, bear in mind that there are always options when it relates to Going Bankrupt in Shepparton, so do some study, and Good luck!

If you wish to learn more about exactly what to do, where to turn and what questions to ask about Going Bankrupt, then don’t hesitate to speak to Fresh Start Solutions Shepparton on 1300 818 575, or visit our website: bankruptcyexpertsShepparton.com.au


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

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Bankruptcy Advice Shepparton is a complicated process, and you should make sure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no constraint on how much you can earn. However, I will say that your income is a significant consideration when working through when it comes to Bankruptcy Advice.

The first thing you need to know about this area of Bankruptcy Advice is 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 quantity 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 financial strains in Shepparton such as medical, child care, substantial travel to and from your job, or a situation where your spouse used to work but is not able to add to the family income.

Some of the intriguing parts of Bankruptcy Advice 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 pay $5,000 child support each year and you have no dependents living with you then your modified net income limit will be $55,332.10.

There are more issues involving income and what is or isn’t regarded as income – if you’re uncertain, it’s best to get experienced advice. The reason you must consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will be taken by the ATO while you are bankrupt to contribute toward your tax bill. If you don’t have a tax bill then you will keep your tax refund so long as that doesn’t take you over your threshold income caps.

If you think when it comes to Bankruptcy Advice, your situation is more intricate, then just get professional advice in Shepparton. I may seem like a broken record, but remember that it’s always a smart idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it’s far too late to change your mind.

If you would like to find out more about what to do, where to turn and what issues to ask about Bankruptcy Advice, then don’t hesitate to contact Bankruptcy Advice Shepparton on 1300 879 867, or visit our website:bankruptcyexpertsshepparton.com.au

Going Bankrupt in Shepparton – Are you going to get bitten?


When people in Shepparton ask me about Going Bankrupt, I let them know the timeless 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 dies. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They travelled together only for the snakes to in the end bite the boy despite his assurance not to do so. The snake’s reply was ‘You knew what I was when you picked me up.’

Acquiring the right financial advice in Shepparton when it pertains to Going Bankrupt is a great deal like that little boy’s experience, fraught with risk and danger, and normally skewed for the benefit of the person giving the advice. Often you’ll get bitten unless you know what you’ve picked up 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 small amount 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 a long time researching diverse investment options, and I went to visit a few financial advisors. It was transparent 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 very different idea of what I should do. This frustrated me so much that it put me off the entire idea of picking any of them.

I’m sure currently you have read enough on the internet to be totally puzzled about Going Bankrupt and just what to do. It would most likely be easier for me to help you understand the nature of the financial snakes you could be grabbing while you are attempting to get to the bottom of your financial issues in Shepparton. Basically, you need to try and figure out what your overarching alternatives are, do your very own research into where to proceed with your plan for Going Bankrupt, and then approach the things you feel is best in Shepparton for your requirements. Essentially, you have 3 options for who to turn to.

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

Another possibility 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 Going Bankrupt, your accountant won’t be much help to you anymore.

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

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 contact Bankruptcy Advice Shepparton on 1300 879 867, or visit our website: bankruptcyexpertsshepparton.com.au

Going Bankrupt in Shepparton – Choices, Choice, Choices

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When it comes to Going Bankrupt in Shepparton, there are a lot of choices that we get given depending upon who we are, who we speak to, and what exactly has gone wrong. One of the most common confusion I see with Going Bankrupt is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Going Bankrupt in Shepparton, a lot of the info you receive on this issue will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, I can promise you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very simple way: charging you a fee for helping you wrap each of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but these guys won’t be doing it free of charge. Please do not misunderstand me: if you believe your financial troubles in Shepparton may be fixed by paying less interest, then go on and investigate the possibilities. Even a little amount of interest saved over years easily adds up.

Normally 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 already has defaults on it so not a single person will give you a loan, consolidated or otherwise,.
  • By the time you work it all out, you’re so far down a hole that saving on a bit of interest just won’t make a great deal of difference,.
  • You’ve probably gotten to the stage where you’ve had more than enough, you’re emotionally burnt out, you can’t go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.


Personal Insolvency Agreements

So when it relates to Going Bankrupt in Shepparton, what’s the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Freedom is the main thing 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 agency that advertises on TV. Basically this process resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts mediate a deal on your behalf. You can give a lump sum settlement figure or enter into a payment plan, or you can offer them assets instead of cash. This might sound fine when it comes to the troubles with Going Bankrupt – that is until you discover that one of the obstacles with PIA’s is that 75 % of the people you owe money to need to agree on the deal. If they do not, your proposal is rejected or will need to be renegotiated.

Generally people you owe money prefer all their money back in addition to interest. Sometimes they’ll go for less than the amount you owe them – it’s typically a percentage of the debt – but allow me to stress this aspect: 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 actually settle for.

In most cases 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 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 Going Bankrupt and insolvency I’ve heard of creditors choosing less 80 % on rare occasions, but that usually only occurs with a public company entering 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 smart 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 Shepparton aren’t going to get that lucky!

If you would like to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to call Bankruptcy Advice Shepparton on 1300 879 867, or visit our website: bankruptcyexpertsShepparton.com.au