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

income change.jpg

Bankruptcy Advice Melbourne is a confusing process, and you need to ensure you get the right guidance. And when it comes to your income being affected, the answer to the question is maybe. The first thing you have to know about going bankrupt is there is no constraint on how much you can earn. However, I will mention that your income is a significant 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 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 each year. 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 raises the threshold amount, if you have financial commitments in Melbourne like medical, child care, serious travel to and from work, or a situation where your partner used to work but is no longer able to support the household income.

Some of the informative parts of Bankruptcy Advice is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into account 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 a good idea to get qualified advice. The reason you need to 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 will likely 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 as long as that doesn’t take you over your threshold income caps.

If you believe that when it comes to Bankruptcy Advice, your situation is more intricate, then please get expert 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, because once you have filed the paperwork it’s too late to change your mind.

If you want to learn more about what to do, where to turn and what issues to ask about Bankruptcy Advice, then don’t hesitate to contact Bankruptcy Experts Melbourne on 1300 795 575, or visit our


Going Bankrupt in Melbourne – Choices, Choice, Choices

Bankruptcy Choice.jpgWhen it comes down to Going Bankrupt in Melbourne, there are a great deal of choices that we get given depending upon who we are, who we speak with, and just what has gone wrong. 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 Melbourne, a lot of the facts you receive on this issue will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can promise 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 a single neat and tidy package.

I hate to tell you this but they aren’t going to be doing it for free. Please do not misunderstand me: if you consider your financial troubles in Melbourne may possibly be fixed by paying less interest, then go on and explore the options. Even a little amount of interest saved over years quickly adds up.

Normally I find if you are reading this blog you’ve probably attempted to consolidate your debts already and come to the following realisations similar to these:

  • Your credit rating is no good, and your credit file already has defaults on it so not a single person will offer 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 little bit of interest just won’t make a great deal of difference,.
  • You’ve quite possibly reached the point where you’ve had more than enough, you’re mentally worn down, you can’t go on one more 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 Melbourne, what’s the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability 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 firm that advertises on TV. Ultimately this process is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and they mediate a deal on your behalf. You can offer a lump sum settlement figure or enter into a payment plan, or you can offer them assets as an alternative to cash. This can sound acceptable when it comes to the issues with Going Bankrupt – 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 don’t, your proposal is rejected or will have to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they’ll settle for less than the amount you owe them – it’s normally 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 truly 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 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 wise lawyers and some very clever frameworks 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 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 Experts Melbourne on 1300 795 575, or visit our website:

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

^E3986DAB09B2A4C8525776A2CC4066AE5B0CA6A391D0B715C3^pimgpsh_fullsize_distrWhen people in Melbourne 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 see one last sunset before he passes away. The boy was reluctant, but the rattlesnake pledged not to bite him in exchange for the ride. They travelled together only for the snake to ultimately attack the boy despite his vow not to do so. The snake’s reply was ‘You knew what I was when you picked me up.’

Obtaining the right financial advice in Melbourne when it concerns Going Bankrupt is a whole lot like that little boy’s journey, fraught with risk and danger, and typically skewed for the benefit of the person providing the advice. In most cases you’ll get bitten except if you know what you’ve picked up before you move forward (avoid the rattlesnakes). I discovered the problem with obtaining financial advice as a teenager, and it has been key 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 rather high and investing your money was really profitable. I spent a few years researching varied 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 appeared to exude confidence and have all the answers. What hit me was that they all had a really different idea of what I should do. This puzzled me so much that it put me off the whole idea of opting for any of them.

I’m sure currently you have read enough on the internet to be totally puzzled about Going Bankrupt and exactly what to do. It would most likely be easier for me to help you learn about the nature of the financial snakes you may be grasping while you are trying to get to the bottom of your financial troubles in Melbourne. In essence, you need to try and understand what your overarching alternatives are, do your very own research into where to proceed with your plan for Going Bankrupt and then approach what you feel is best in Melbourne for your needs. Basically, you have 3 options for whom to turn to.

The first option is a Solicitor – This may look like the go-to choice when you appear to be in trouble. But there certainly is only so much help they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their expertise includes 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 considering Going Bankrupt, 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 virtually all you have to figure out when it comes to Going Bankrupt.

If you would like to find out more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to speak to Bankruptcy Experts Melbourne on 1300 795 575, or visit our website:

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


Do you have knowledge of just how much Going Bankrupt in Melbourne is changing? The Australian Government at the end of 2015 proposed some inherent changes to the Bankruptcy Laws in Australia. One of the most significant of these is the length of time that a person is bankrupt for. At the moment, 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 considerably 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 improvements to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that protecting 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 put off investors from supporting start-ups, and as a result 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 Melbourne that some make is that this modification will only encourage fraudulent behavior opening pandora’s box so to speak for the unscrupulous to defilement of the bankruptcy system. We have looked at the minimum, but on the other side of the problem, The government is not submitting to change the maximum term of 8 years if it deems a bankrupt has appeared in an unethical or fraudulent way, and there are no proposals to change the effects of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Melbourne, I have a reasonable share of experience when it concerns Going Bankrupt. And having dealt with countless bankruptcy cases in Melbourne I have never uncovered someone abusing the system or acting in an immoral way as to exploit the bankruptcy laws in Australia. When it comes to Going Bankrupt, each week I help a small business owner or entrepreneur undergo the very complex task of bankruptcy, not once have I felt they are happy about it. The standard small business owner or entrepreneur in Melbourne does not start out taking enormous financial risks with the intent to fail. The media loves citing the apparent injustice 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 most effective and brightest in Melbourne not get rejected of the game financially for financial decisions often out of their control. Most small business owners I help with Going Bankrupt, are hardworking, tax paying, companies keeping this country going.

There really is a fine line with what exactly the government is trying to do here, since they are attempting to balance helping people who have made decisions out of their control, and preventing people from making errors that land them in trouble and therefore an issue of Going Bankrupt. However you also don’t want to get rid of the experience and knowledge that business owners have. You definitely don’t want to shatter people simply because they have had a sincere failure in a large or small start-up enterprise that has not gone well.

At the big end of town large developed 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 bankruptcy were reduced because directors are worried they’ll be personally responsible 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 updates for Going Bankrupt. I cannot imagine, that these improvements will be harmful to Australia’s economy, actually these bankruptcy laws will save the tax payer in all areas of health – Especially in the mental health field because the emotional cost of bankruptcy is substantial. When it comes to Going Bankrupt in Melbourne not a day passes where I don’t find out the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Going Bankrupt 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 Going Bankrupt, feel free to call us here at Bankruptcy Experts Melbourne on 1300 795 575, or visit our website: