Is Bankruptcy Right for Me?
Bankruptcy is one of the hardest things anybody has to ever face. Making the right decision is difficult. That is why we have created a free eBook – The Big Five – to help you make a well informed decision. At Bankruptcy Tennant Creek we suggest you do not move forward with bankruptcy until you have read this, and you have the answers to the 5 big bankruptcy questions.


Big 5 Questions
– Is going bankrupt right for me?
– Will I lose my job?
– How will my income be affected?
– Can I keep my house or car?
– Will I lose my business or can I still be self-employed?
If you are considering bankruptcy, being able to answer these questions is vital. When you have all this information then you will understand exactly what will happen to your business and assets should you decide to file for bankruptcy. Feel free to download our eBook for free and educate yourself today. Or, if your concerns are more complex, call us at Bankruptcy Tennant Creek directly on 1300 795 575.





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Bankruptcy Options
Bankruptcy vs
Debt Agreement
Is going bankrupt my only choice? No of course not you always have a choice, you might want to think about a debt consolidation loan. However, the most common option considered instead of bankruptcy is a Debt Agreement (Part IX). Study the graph to work out the relative benefits and drawbacks of Bankruptcy, Debt Agreements, and Personal Insolvency Agreements, so you can make an informed choice.




Why Do Some Business Say Debt Agreements or Personal Insolvency Agreements?
There is a reason some bankruptcy services spend a lot on TV commercials … there is a lot in it for them if you choose them … In a desperate bid for your custom, things quickly turn into a cat fight, with one business turning against another. And everybody claims they are the best. We are not here to be competitive. Here at Bankruptcy Tennant Creek we are here to inform you so you can decide for yourself.
Debt Agreements
Personal Insolvency Agreements



Should I Consider a
Debt Consolidation Loan?
A debt consolidation loan is in some cases the most suitable plan. What the plan does is to pack all the various loans into one, much larger loan. There may be a fee to consolidate the debts. One of the biggest challenges to consider is your credit rating, often people considering bankruptcy have a badly damaged credit rating so a debt consolidation loan is just not an option.



Who Will Know About My Bankruptcy?
An individual’s privacy is a big deal when you file for bankruptcy. The days of your name being published in the paper as a bankrupt are long gone.
In fact, there are usually only four types of people who will know about your bankruptcy:
1.) The people you personally tell.
2.) Your creditors or the people you owe money to.
3.) People who request to access your credit file, such as when you make an application for a loan. (this involves you giving them authorisation first), Making an application for a loan is something you will not be doing for the 3 years you are bankrupt due to the fact that nobody will give you a loan while you are bankrupt.
4.) Anyone who looks you up on the National Insolvency Index (which people have to pay to access).
There is no need for you to worry, you are not a criminal and you have actually not failed. You are simply someone who wants to put an end to debilitating debt and move on with their lives. At Bankruptcy Tennant Creek, we are here to help. Download our Free ‘The Big 5’ e-Book for comprehensive information about insolvency and your employment or give us a call on 1300 795 575.


Bankruptcy and the Family Home



If I File for Bankruptcy Can I Keep My House?
In many cases the answer is yes. If losing your house is a significant issue for you then the very best method to find the answer is to call us here at Bankruptcy Tennant Creek on 1300 795 575.As soon as you tell us about your situation, we can give you a really clear understanding of your options over the phone. Almost everyone is sentimentally attached to their house; it is where the kids have grown up, it is where you indulge in life on a day to day basis. People frequently pressure themselves to the edge of madness attempting to not lose the family home, assuming this is an inescapable effect of bankruptcy.



Suppose My House Has a Lot of Equity?
What Can I Do?
If your home has plenty of equity and you are still drowning in debt, there are still some possibilities available to you. In fact, this applies also to vehicles or other assets you may have. In this situation what you cannot afford to do is presume that everything will be okay. It is the bankruptcy trustee’s job to sell whatever assets you have when you apply for bankruptcy and put that money towards your debts. Getting the wrong advice here could be disastrous! Before you take your next step get some assistance, at Bankruptcy Tennant Creek we offer a complimentary initial consultation, so call us today on 1300 795 575.





What If My Partner’s Name Is on the Mortgage?
Often when a couple purchase a home a single income is often not adequate to get approval for the mortgage, so the bank or lender will generally have both of these partners sign up for the credit. Once the house is purchased both names are listed as shared tenants on the homes mortgage and the title deed of the property. Let us say Mick and Susie, who reside in regional Northern Territory, bought a house 4 years ago for $400,000 without any deposit so their home loan was also $400,000. Mick is a plumber and needs to declare bankruptcy but Susie has a very good job teaching at a high school and does not need to declare bankruptcy. Unfortunately, the house has not increased in value in the 4 years they have owned it and they also have only managed to pay the interest on the home loan in that time. So effectively, they still have a $400,000 mortgage on a home worth $400,000. Mick can then file for bankruptcy and as long as they keep covering the mortgage, rates etc, they can continue to keep the house for the 3 years Mick is bankrupt.
This action will, in no way, affect Susie’s credit history rating or require her to declare bankruptcy at the same time. There is plenty to take in when it comes to houses and going bankrupt so if you have concerns about your house, don’t hesitate about calling us at Bankruptcy Tennant Creek on 1300 795 575.






How Is Equity Determined?
This is the most vital part of this procedure. Why? Put simply, if you get it wrong you are going to lose your home. There are a number of things you should understand here. First of all, your gut reaction or assumption about the true worth of your property is most likely generous. The majority of people expect their house is worth much more than it actually is. When you declare bankruptcy the trustee might ask how you calculated the price for your home. In some cases they may request more information about your valuation, possibly a rates notice, a real estate agency’s appraisal or a registered valuation. A useful strategy would be to search www.realestate.com.au then click on the ‘Sold’ tab on that particular site and search for the most recent house sales in your street or neighbourhood. This will assist you to get some idea of the value of the market at the moment. Always remember, the valuation is based upon a fast sale not a sophisticated real estate agent’s marketing project. Understanding this step is vital, at Bankruptcy Tennant Creek we can provide you guidance before moving on, call us on 1300 795 575.



What Factors Would Contribute to Losing the House?
Equity! If you are up to date with your monthly payments then the most significant issue in bankruptcy is equity. If you have $300,000 equity in your house and you have $100,000 worth of unpaid debt and no other means to pay out the debt then the trustee sees your equity as a way to pay your debt and so they will most likely sell your home to repay the unpaid debt and give you whatever funds remain from the sale.





Will the Bank Let Me Keep My House Even If I’m a Bankrupt?
Why would the bank want bankrupt clients? Wouldn’t they want to sell your house and not take the chance on you? Consider this, the bank that has generously provided you the money for your home is making a great monthly income in interest from you, month after month. Provided you keep up to date with your payments then the mortgage lender wants you in your home at all costs. Having said that, you keeping your home is not the bank’s call. If a trustee makes a decision that there is enough equity in your house to liquidate it, they will force you and the bank to sell your home.



What If I Have Received a Notice From the Tax Office?
One of the most important things to note is that YOU MUST NOT LET A TAX OFFICE NOTICE LAPSE. It will be best to get in touch with us at Bankruptcy Tennant Creek on 1300 795 575 as soon as you get a tax notice. We can then help you work through the procedures as rapidly as possible to get the most favourable outcome for you.
Once we have examined your needs, we can create an action plan to help advise to you the best strategy. From this point, you can examine your alternatives and decide on where you go from there.


Bankruptcy and Employment
Will My Employer
Be Advised?
Normally, there is no good reason for your employer to be informed of your personal bankruptcy. When you make over the income threshold and you are asked to make an income payment, you will organize those payments yourself – it does not go through your workplace.
Will I Lose My Job If I File for Bankruptcy?
When bankrupt there is a distinction between presently being employed and applying for a new position. Rarely will you ever lose your job due to the fact that you have filed for bankruptcy. For example, it is difficult to get into the Defence Forces as an existing bankrupt, but they do not terminate your job if you become bankrupt when you are already employed by them.
Each professional body has its own rules, and this differs from one state to another. Our advice is to speak directly to your industry-specific experts, who will know precisely how your unique circumstance works in the NT. This is well worth doing before moving forward with your bankruptcy, as it may be a critical factor in your decision. Take a look at the chart below for a list of some professions where seeking further, industry-related guidance is a must. Some industries will not have a problem with your bankruptcy so long as it is all above board. Please feel free to call us at Bankruptcy Tennant Creek on 1300 795 575 with any questions you have.


Bankruptcy Income Thresholds
How Much Can I Earn When I’m Bankrupt?
In the Northern Territory there is no restriction on how much you can earn when you are bankrupt. Before filing for bankruptcy, however, it is very important to consider your salary and make sure bankruptcy is the best choice for you before proceeding. Find out just how much you can make before you need to start paying funds to your creditors via your trustee. There are also other things to consider with bankruptcy income such as Child Support, Hardship & Self Employment. If you are worried about this simply call us at Bankruptcy Tennant Creek on 1300 795 575.





Bankruptcy and Income
Every year in March and September the Government audits income threshold figures based on the latest cost of living. This means that the amount of money you are able to earn (net income, after tax and child support) while bankrupt is often changing, and your trustee will need to determine your real net income. This real net income figure will depend on various factors such as child support, salary sacrifice, superannuation payments and business expenses.



What Can My Partner Earn If I Go Bankrupt?
For the most part in The Northern Territory, your partner is seen as a completely separate entity in the eyes of the law and will not be impacted financially by your bankruptcy. In the case of a joint loan, you should first get further advice. Call Bankruptcy Tennant Creek today for an obligation-free chat on 1300 818 575.





Who Is Considered a Dependent?
A dependent can be anyone, of any age, who lives with you and earns no more than $3,708 annually. If you have children who do not live with you full-time, and you pay child support for them, you cannot class them as dependents. By the way, Centrelink payments are considered income for your dependents.



What If My Spouse or Partner and I Both Need to Go Bankrupt?
If, as a couple, you both need to declare bankruptcy and you have no dependents, then you are allowed to earn up to $1,083.01 net each. The same income rules apply to each person individually. If you have kids refer to the income thresholds in the chart above. If you have further questions call us at Bankruptcy Tennant Creek on 1300 795 575.


What is a Personal Insolvency Agreement?
This is an adaptable agreement between you and your creditors. It is handled through a trustee who administers just how much you need to pay and when. Once those conditions have been fulfilled, you are then free to start afresh with your life’s new chapter.
What is a Debt Agreement?
A debt agreement allows a debtor to participate in an arrangement with their creditors to satisfy their debts without having being made insolvent.
You cannot enter into a Debt Agreement if you have been bankrupt, or you are currently already in a debt agreement. Bear in mind, there are also salary limitations, property market valuations, and unsecured debt value constraints. If you wish to know more please get in touch with us at Bankruptcy Tennant Creek on 1300 795 575.
Debt Agreements (Part IX)
DDebt Agreements are complicated and can have significant far-reaching consequences. This page contains simple and general information only.
In general, you might want to consider a Debt Agreement when the following applies:
If you have significant assets to protect, as long as they are valued less than $236,128.80.
When you have smaller sized debts up to the value of $113,349.60 in total.
You do not earn more than $88,547.55.
Remember it is still an act of bankruptcy, if your creditors do not accept the Debt Agreement, they can make use of it to apply to the court to make you bankrupt. Debt Agreements are only appropriate for people in quite specific circumstances.
How much you pay back?
This is a negotiated amount depending on your circumstances, keep in mind if you are out of work or do not earn enough you probably will not qualify. For example, if you have proposed to pay back 90% of all your outstanding debts over a 5-year period, then all creditors will get 90% of what you owe them. Remember if you do not continue and fulfill the agreement then you are back to square one.