Personal Finance Tips – Finance Goals In Your 30’s.

There’s no doubt that hitting your 30’s is a considerable milestone for everyone. Although some of us may have bought their first home, started a career, or even a family, this decade of our lives has a critical financial impact for your future years. For many folks, our financial commitments have probably grown and juggling expenses and responsibilities with saving money for the future is harder than ever before.

The majority of us have dusted off the mistakes of our 20’s and discovered a thing or two, however this decade of our lives is the time when we really have to grow and genuinely look into our financial circumstances. We need to prioritise commitments, such as our children’s education and retirement account, and take the most appropriate steps to acquire a promising financial future for you and your loved ones. Life can definitely get more complicated in your 30’s, however by targeting a number of vital aspects of your finances, your money doesn’t have to be nearly as complicated.

By making minor lifestyle adjustments, you can substantially boost your financial situation now and in the decades to follow, so here are some personal financial goals that everybody in their 30’s should look at.

Extend your emergency fund
Hopefully you created an emergency fund in 20’s, saving enough funds for a few months’ worth of expenses. This is a superb goal to accomplish in your 20’s, but earning more money and having increased financial duties in your 30’s means that your emergency fund becomes increasingly important. Financial advisors strongly recommend that folks in their 30’s should have at least 6 to 12 months of living expenditures saved in their emergency fund. Keep in mind, moving back in with your parents is far more complicated in your 30’s, especially if you’re a parent yourself.

Examine your insurance policies
Commonly, people’s circumstances change significantly in their 30’s. You may have purchased a new home, a new vehicle, or have started a family, so it’s critical that you review your insurance plans so they’re up-to-date. It’s likewise a smart idea to have a look at income protection and life insurance along with your current insurance policies. Even if your personal circumstances haven’t changed in your 30’s, you should nonetheless assess your insurance plans a couple of times a year to make sure that you’re receiving the best rates and premiums.

Grow your retirement savings.
Now is the time where you should begin developing your retirement contributions, specifically if your employer features a salary sacrifice plan. Making voluntary super contributions is a superb way to grow your nest egg, so if you receive a pay increase, consider using the additional income towards your retirement savings. Alongside this, if you begin a new career or job, always make certain that use the same super account which will significantly reduce costs and maximise your retirement growth.

Live well below your means.
When you find yourself having more financial obligations, you should assess your budget and make sure you’re living well below your means. The key to improving your wealth is to expand the gap between what you earn and what you spend. You’ll probably need to decrease some expenses like eating in restaurants or cable television subscriptions, but the more money you save, the faster you’ll accomplish your financial goals. It’s also advisable to look at percentage of income saved instead of dollar amounts, as this makes it much easier to figure out which expenses can be decreased to ensure you’re always saving more than you earn.

Seek financial help sooner rather than later.
If you’re finding it a challenge to meet mortgage repayments on time or you’re falling deeper into debt, seek financial assistance as soon as possible. Frequently, the sooner you do something about it, the more possibilities will be available to you. Lots of people suffer financially for years prior to seeking help, and not only are they in a far worse position, but it is also completely unnecessary! There are many choices available for those in financial trouble, so if you need any financial assistance, speak with Bankruptcy Australia on 1300 795 575, or visit our website for more information: www.bankruptcy-australia.net.au

Personal Finance Tips – Finance Goals For Your 20’s.

There’s no question that your 20’s is a very cherished stage of your life. There’s an anxious but exhilarating sensation about becoming an adult, moving out of home, and being financially self-reliant. Regardless if you launched a career, a university degree, or spent time traveling overseas and gaining life experience, your 20’s is a momentous decade from both a personal and financial point of view. Regardless of what path you choose, the one constant that will continually remain in your life is money.

The point of the matter is, the earlier you begin saving money and developing wealth, the better your financial condition will be in the upcoming years. Regardless of whether you choose to get married, start a family, or invest in a house, there are particular financial aspirations that every person in their 20’s should endeavour to accomplish to secure a better a future. In this blog, we’ll be taking a closer look at these objectives and how you can start building healthy financial habits.

Set up a budget
Creating healthy financial habits starts with discovering how to budget. Being able to spend less money than you make is the key to saving money, so start taking control of your money by putting together a budget and following it! With a pen and paper, write down your monthly income and expenditures. Review your expenditures to find out which can be cut down, or which can be eliminated entirely. A few ways to reduce your expenses are opting to eat at home as opposed to eating in restaurants and switching your Cable television subscription to streaming services like Amazon instead.

Eliminate your debts
Whether you’ve travelled the globe or have student loan debts, the quicker you repay these debts, the better. Interest compounds over time, so repaying your debts by cutting down expenses or working a second job can save you thousands of dollars in only a couple of years. These savings can then be invested in a high-interest term deposit as an example, which will place you in a substantially better financial position than only making the minimal monthly repayments on your debts.

Start an emergency fund
Life rarely works out the way you planned, so it is essential to be prepared for any unforeseen changes that might be needed. You could end up unemployed, or in an incident that hinders you from working, so having an emergency fund will be able to give you a bit of breathing space when you need it the most. Financial advisors propose that all individuals should have a dedicated emergency fund that is capable of supporting their living expenses for 3 to 6 months.

Be insured
Insurance protects you financially from any adverse consequences, for instance income insurance in case you lose your job, health insurance for sudden medical expenses, and vehicle insurance in the event your car is stolen. Though it’s not always advisable to get every form of insurance available, it’s undoubtedly a wise idea to examine your individual situation to see which is best suited to you. For instance, medical insurance is highly recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unexpected incident may lead to significant damage to your financial position.

Invest in a diversified portfolio
If you’ve been able to save a specific amount of money that is otherwise sitting idle in the bank, look into investing this money in a high-interest term deposit. When you’ve got more money saved, contemplate buying a property, or investing in gold. The key to a sensible investment portfolio is ‘diversification’, meaning that you manage the risks of investment by putting your eggs in different baskets, so to say.

Get financial assistance as soon as possible
If, for whatever reason, you’ve found yourself in financial hardship, the best advice is to seek financial assistance immediately. Lots of individuals struggle with financial troubles for many years before getting help, which puts them in a worse position as their debts will only compound over time. The sooner you seek financial guidance, the more options are available to you, so if you need any guidance with your financial situation, speak with the professionals at Bankruptcy Australia on 1300 795 575, or visit our website for additional information: www.bankruptcy-australia.net.au

How You Can Save Money On Food

We all suffer through stages in life where money is tight. Luckily for us, there are a number of expenses that we can quickly eliminate, like cable television, gym memberships, and eating out at restaurants. On the contrary, there are other expenditures that we simply can’t avoid. Rent, debt repayments and school tuition are just a number of the necessary expenses that are fixed and there’s little we can do about it. Having said that, there is one necessary expense where we can all save a considerable amount of money; and that expense is food.

Having undertaken some research, I’ve found there are a multitude of ways in which we can all save on food expenses. Of course, eating out at restaurants is far more expensive than eating at home, but I’m referring to saving money on your weekly food bills. You’ll be surprised at just how much money you can save by adopting some basic guidelines, so here are some simple tips that can save you thousands of dollars each year on your food bills.

Plan your meals and create a shopping list
Have you ever had to throw away food because it’s past its expiration date? I know I have! By planning each meal of the week, you can be sure that you just spend money on food that is needed. Take a look in your kitchen to find what ingredients you currently have, which ingredients you have to buy, and create a list of all the ingredients you’ll need for the next week.

Most of us are guilty of impulse buying at the supermarket, so planning your meals and purchasing only the ingredients on your list will drastically reduce any impulse buying. Don’t forget to always keep stationary in the kitchen, so when you run out of a particular ingredient, you can write it down straight away and perhaps prevent a second trip to the supermarket. And always shop for groceries on a full stomach!

Don’t bring your children to the supermarket
In some cases it can be difficult to organise, but if you go grocery shopping when your children are at school or in the evening when someone can babysit them, you’ll save a great deal of money. Not only can you shop a lot quicker, but you don’t have to drain your energy by saying ‘NO’ to your children every aisle. Commonly this can be over-bearing, so many people will give up occasionally, and these unneeded products will accumulate over the year much more than you’d imagine.

Go shopping in the evening
Speaking of shopping at night, you’re more than likely to uncover the best prices at this time of day. Large grocery stores will usually discount goods when they’re overstocked, and perishable goods like bread, fruit and veggies will also likely to be marked down. While it may seem a bit cruel after a long day, you can bag a lot of bargains by shopping at night.

Buy in bulk
It should come as no surprise that buying in bulk will save you money, especially on discounted items. Be careful though, you don’t want to purchase too much and waste food, but always remember that you can cook meals and freeze them for a later time. Cheese, bread, and butter will keep as much as three months in the freezer, and meat products will usually last up to six months. Just ensure that you have enough room in your freezer first!

Have a go at discounted grocery stores
Discounted grocery stores such as Aldi will always have goods that are much cheaper than the supermarket giants like Coles and Woolworths. Conversely, some products will be more expensive, so try finding bargains at discounted supermarkets before visiting your regular supermarket. While you may not recognise some of the brands, the quality of the food is just about the same. The design is also different, so it may take a bit of getting used to, but if you need to save money on food then this is a superb idea.

If you’re experiencing financial issues, always keep in mind that there are simple ways to save a great deal of money on one of your biggest expenditures. By making some modest changes as well as a dash of discipline, you could potentially save thousands of dollars each year on your grocery bills.

If you discover that your financial position is still worsening, it’s always better to seek financial guidance sooner rather than later. Get in contact with the professionals at Bankruptcy Australia on 1300 795 575, or visit our website for additional financial advice: www.bankruptcy-australia.net.au

Great Ways To Save Money And Enhance Your Life

In today times, saving money is an aspiration that everyone wishes to accomplish, though frequently it can be a strenuous task for lots of folks. Mortgage repayments, bills, groceries, and everyday needs build up quickly, leaving most families with little to no savings. Being able to save money and enhance your life appears to be a paradox, as we primarily associate a better life with spending more money! Irrespective of this, small lifestyle changes can have an impressive effect on your savings balance as time passes, and investing these savings sensibly will definitely enhance your life in the future. All it takes is some self-discipline, determination, and knowledge.

With the new year upon us, now is an ideal time to examine your financial state and plan to keep an eye on your spending habits and trim unneeded expenses. After all, saving money means earning greater than you spend, so here are the leading ways you can save money in the new year to secure a better future for you and your family.

Inspect your financial situation
If you don’t understand your financial condition, then there’s pretty much no way that you can improve it! Having the capacity to make reliable financial decisions begins with knowledge and understanding where your money is being spent. Most of the time, it’s complicated to track our expenses, so it’s a sensible idea to start keeping your receipts and reviewing your expenses weekly to gain a better understanding of your spending habits. This is the most vital step in being able to save money. Now, let’s unveil some specific money saving practices.

Food
Saving money on food is a lot easier than you think. The trick is to plan your meals a week in advance before you head to the grocery store. Once you’ve planned your meals and the relevant ingredients, create a list and stick to it! Don’t go grocery shopping hungry either, that’s a sure way to spend unneeded money impulsively. It’s also a great idea to have a paper and pen in the kitchen area, so when you run out of a certain ingredient, you won’t have to make a second visit to the grocery store in case you forget.

Electricity
Electricity is another manageable way in which you can slash expenses by making some small modifications. The most effective way to save electricity is by switching off home appliances at the power point when you’re not using them. Even if the appliances aren’t being used, an active electricity socket nonetheless uses electricity, and these expenses can really accumulate as time passes. Other ways to reduce electricity is to use fans as opposed to air conditioners, turning off lights that aren’t being used, using hot water bottles instead of electric blankets, and using a clothes line as opposed to a dryer.

Entertainment
All of us have to let off some steam after a hard day’s work, so a glass of wine and some cable television does the trick for most individuals. However, cable television is a significant expense that is hardly used to its full capacity. Take a look at switching to streaming services like Netflix or Hulu which cost approximately $10 a month rather than the standard $70 a month for cable TV. That’s a saving of over $700 a year alone. In addition, instead of eating in restaurants with friends once a week, consider hosting a dinner night where everyone brings a dish and their beverage of choice. You can rotate hosts, save loads of money, and never need to be concerned about being too noisy!

Invest your savings
While the above recommendations are far from exhaustive, saving money by making small changes gives you more financial possibilities to enhance your life. You could use these savings to indulge in a family holiday once a year, or you might choose to invest your savings in a diversified investment portfolio. Whatever you chose, the fact of the matter is that we can all make small sacrifices to save money which can be used to enhance our lives.

Struggling with Debt?
If you’ve found yourself in a position where you’re endlessly battling with debt and can’t see any way out, there are a few options available for you. You don’t have to live your life in anxiety and stress, and the faster you act to rectify your predicament, the more solutions will be available for you. If you need professional advice on any financial troubles that you’re currently facing, don’t wait any longer. Get in contact with the specialists at Bankruptcy Australia on 1300 795 575, or visit our website for more information: www.bankruptcy-australia.net.au

New Year’s Resolution – Improving your Financial Health

The New Year is most certainly a fantastic time to reflect on the previous year and make some resolutions to improve ourselves. Most individuals’s resolutions centre around being healthier, strengthening their career, or improving their financial circumstances. Now most of us appreciate how tough it can be to keep our New Year’s resolutions, so it is essential that you make practical, attainable goals that can be accomplished with a certain degree of willpower and self-control.

If you’ve made a decision that you want to improve your financial health in 2018, there’s a fair amount of planning and preparation required. To develop meaningful financial improvements in your life, it’s important that you focus on the things you can control and to evaluate your progress regularly. To give you some insight on effective ways to do this, the following details some suggestions that you should follow if you want to enhance your financial well-being in the forthcoming year.

Set clear financial goals
Studies have revealed that simply writing down goals substantially increases the chances of you reaching them. In a financial sense, writing down precise goals with an expected timeline not only increases the probability of you achieving these goals, but you’ll additionally understand what is most important to you.

Certain financial goals, like retirement, may require the support of a financial planner, but there are many basic, conceivable goals that you can arrange on your own, such as purchasing a vehicle, saving for a home deposit, or setting up an emergency fund for a rainy day. It is very important that you take small steps to reach these goals, and assessing your progress on a regular basis is the key to success.

Increase your savings
Lots of people don’t know how much money they save each year, so it is very important that you specify an actual dollar amount that you want to save for the forthcoming year. Whether you accomplish this goal or not isn’t the point, the fact that you’re specifying specific goals and planning ways to achieve these goals is the most important aspect.

Simple ways to increase your savings account is to increase your superannuation contributions (and possibly Government contributions), or arrange an automatic deposit into an emergency fund or high interest savings account each week. In any case, increasing your savings will bolster your net worth and overall financial health.

Track your spending
Understanding just how much you spend each month is essential in being able to increase your financial health. Keeping every bill and receipt and manually creating a spreadsheet is one way to do it, but there are a few great apps that monitor your spending on the go, giving you a true indication of how much you’re spending with little effort required.

ASIC’s TrackMySPEND app (https://www.moneysmart.gov.au) is a trusted and reliable tool that helps you understand your typical monthly and annual spending, so you can better plan and accomplish your financial goals. If this doesn’t fit you, there are numerous other apps on the market, so don’t be afraid to test a couple to see which is best for you.

Assess your mortgage and insurance policies
Evaluating your home loan and insurance policies is an excellent way to increase your savings. For example, you should be inspecting how your current mortgage and insurance policies compare with other providers on an annual basis. Lenders modify their policy structures regularly, so chances are you can acquire a better deal if you do a bit of research.

Even small decreases in interest rates can save you thousands of dollars every year, so it’s absolutely worth the effort! If you find a better package elsewhere, don’t hesitate to ask your existing provider to match it, and similarly, don’t hesitate to change providers if they don’t. There’s an abundance of online resources which can adequately guide you through this process.

Seek advice quickly if you’re experiencing financial turmoil
Improving your financial health doesn’t always translate to increasing your savings and emergency funds. Lots of people suffer through years of stress from financial hardship without realising that there are a number of options available to them to enrich their financial wellbeing.

If you’re encountering any financial suffering, the sooner you seek professional advice, the better your recovery options will be. For any advice regarding your financial circumstances, don’t hesitate to get in contact with Bankruptcy Australia on 1300 795 575, or visit our website for more information: www.bankruptcy-australia.net.au

Ways to Repair Your Credit Rating After Bankruptcy?

Congratulations! You’ve successfully served your 3 year period of bankruptcy and have been discharged, so what now? You’ve clearly taken the right measures to settle your financial issues by filing for bankruptcy, and all your debts are well behind you now. However, there’s still a good deal of work required to get your finances back on the right track. The leading issue that discharged bankrupts encounter is their ability to borrow money, and the main reason for this is their bad credit rating.

For the previous three years, you’ve had no debts to pay off so your credit history has nothing to show besides a bankruptcy mark against your name. There’s been no activity on your credit report, so a blank page will make financial institutions hesitant in lending money to you simply because they can’t inspect your repayment habits. Repairing your credit rating is the best way to get your finances back on the right track, and make your recovery process as seamless as possible.

The best ways to repair your credit report after discharge?
Considering that lenders haven’t been able to examine your financial management skills for the past three years, you have to begin illustrating healthy financial habits. Here’s a list of ways in which you can do this

1. Regular employment
Attaining consistent and ongoing employment is a fantastic way to enhance your financial security and demonstrate to lending institutions that you have a regular income stream. Steady employment will enable you to increase your savings and improve your overall financial circumstances, resulting in a better credit rating.

2. Increase your savings balance
Your savings account is an asset, so increasing your savings balance in time will illustrate to loan providers that you are financially sensible and are capable of making loan repayments. By transferring money into a specialised savings account each month, even a small amount, will improve your credit rating.

3. Limit your credit applications
Every time you make an application for a line of credit, it is registered on your credit report, so too many credit applications can negatively impact your credit history. After being discharged, it’s pivotal that you are realistic and careful about the kinds of credit you apply for to increase your chances of approval. It’s best to request only one line of credit at once, and always remember that secured loans and options with a guarantor or joint accounts will increase the chances of approval.

4. Think about a term deposit
If you’ve had the chance to save money during the course of your bankruptcy period, think about investing some of it into a term deposit account. Not only will you accumulate interest and strengthen your overall financial circumstances, it will likewise show lending institutions that you are financially reliable. Consequently, the likelihood of securing a loan will be increased which leads to an improved credit rating.

5. Always make repayments on time
One of the most important things you can do as a discharged bankrupt is to make any type of repayment on time. Whether it’s your electricity, rent, or even a secured loan in your name, making these repayments on time will undoubtedly improve your credit report and increase the confidence that lending institutions have in your financial management skills.

6. Don’t hesitate to talk with financial institutions
If you intend to apply for a line of credit after your bankruptcy period, or explore what types of options are available to you, don’t be afraid to talk with lenders or other financial institutions to review your circumstances. They are in the best position to advise of your eligibility, and offer information on what options would work best for your personal circumstances.

Be careful with credit repair companies
There are plenty of credit repair companies that will make all sorts of promises to improve your credit record. While many of them are effective in challenging any incorrect listings on your credit history, they may not be able to do anything else to improve your credit report. The Government’s MoneySmart website (https://www.moneysmart.gov.au/) advises discharged bankrupts to be “very careful” of these companies since they “may not always be able to do what they claim they can”.

If you require any expertise in repairing your credit report, or have any queries relating to your recovery process after bankruptcy, it’s always best to seek advice from qualified professionals. Get in touch with Bankruptcy Australia on 1300 795 575, or alternatively you can visit our website for more information: www.bankruptcy-australia.net.au

4 Money Saving Tips This Christmas

Christmas can be a wonderful time of year. Spending quality time with friends and family, going on holidays, giving presents to loved ones, and of course the famous Christmas lunch! It’s indeed a time for giving, and with this comes expenses. It’s very easy to overdo it with family trips, presents, and extravagant foods; to let your hair down and delight in the spirit of Christmas. The truth is, though, that the silly season inevitably passes and many of us are left with the burden of substantial credit card balances. Some individuals spend months attempting to settle their Christmas debts, while others find themselves in much deeper water.

While some individuals have the financial capacity to shower their loved ones with luxurious gifts and lavish celebrations, many of us need to be cautious to spend within our means so our Christmas joy can smoothly sail into the New Year. So with this being said, I’d like to share with you some reliable ways of celebrating Christmas, without breaking the bank.

1. Set a Budget

Although it may sound cliché, it’s essential that you set a budget and adhere to it. Draft a list of all the presents you’ll be giving and calculate the total amount. The majority of the time, it will be far more than you believed. Use this as motivation to think outside the box (pardon the pun!) and make some adjustments so you can stick to your budget. You could have a yard sale and sell items that aren’t being used any longer, talk with friends and family about a setting price limit for gifts, or perhaps think about making gifts yourself! ASIC has introduced an exceptional app to monitor your Christmas spending called TrackMySPEND (https://www.moneysmart.gov.au/) which I’m positive many of you would find helpful.

2. Shop Online

Although many individuals find enjoyment in wandering through department stores and basking in the radiant Christmas displays, almost all the same products are readily available on the web at much cheaper prices. Make use of comparative shopping websites like Google Shopping, Nextag, or PriceGrabber to find what you’re searching for. These websites are incredibly competitive and will generally have discounts that can save you a bunch. While shopping online will be cheaper, you will need to take extra precaution to ensure you get what you paid for.

3. Rethink your Christmas Cards

If you’re one of the many people who send Christmas cards to all your friends and family, you’ll comprehend that the costs of this exercise can be fairly expensive. It’s no surprise that only a few of your family and friends will actually keep these cards so it’s ultimately just money down the drain. As an alternative, why not send a family Christmas video message online? There are heaps of apps on smart phones and tablets that allow you to send fun and amusing Christmas videos that can be delivered electronically at no charge whatsoever. On the other hand, you can always make your own Christmas cards with personalised messages and have your children draw pictures to make them super special!

4. Wrapping Paper

An exquisitely wrapped present can make a powerful difference, despite being the cheapest of gifts. Christmas paper can be relatively costly, so contemplate buying plain brown paper and adding a festive ribbon from a craft shop which will look much nicer than Christmas paper. You can even recycle brown paper bags that are typically given at clothing stores. Alternatively, consider purchasing plain red, gold, or green paper which can also be used as birthday presents throughout the year. Remember, many department stores will wrap your gift for free, so don’t hesitate to ask!

As you can see, Christmas festivities doesn’t have to break the bank. Sadly, however, lots of individuals spend beyond their means and end up in financial hardship in the New Year. If you end up in this position, it’s better to seek professional advice sooner rather than later. There are many solutions available to you; all you need is the right advice. For any direction on financial difficulties, speak with the specialists at Bankruptcy Australia by phoning 1300 795 575, or alternatively visit our website for more information: www.bankruptcy-australia.net.au

Everything you must know about Bankruptcy Notices

If you have been given a bankruptcy notice or court order you must take action rather quickly to prevent future pain. Owing anyone money regarded here as a creditor, could be any person or business to whom you owe money. If you’re not able to pay money to a creditor, the creditor will reach out to the Australian Financial Security Authority (AFSA) who will consequently send a bankruptcy notice demanding payment of that money.

 

Obviously, there is a limit to the quantity of money owing to creditors before they can get in touch with the AFSA, and the minimum amount is $5,000. When the creditor has secured a final judgment, AFSA will issue you with a bankruptcy notice.

 

It’s integral that you take swift action if you receive a bankruptcy notice from the AFSA. You will commit an ‘act of bankruptcy’ if you fail to do any of the following:

 

– Fulfill the bankruptcy notice inside the requested timeframe stated on the notice (normally 21 days); or

 

– Apply to the courts to ask for the bankruptcy notice be cancelled or set aside in less than the timeframe presented on the notice (normally 21 days).

 

Committing an act of bankruptcy means that you give your creditor the authority to apply to the Federal Circuit Court for a sequestration order, or to put it simply, an order that will make you lawfully bankrupt.

 

How does a Bankruptcy Notice get served to me?

 

A bankruptcy notice can be served to you in a range of ways; it could be validly served to you individually, by normal post, or hand delivered to your registered address. In several circumstances, a bankruptcy notice could be served in an electronic format, either by means of email or fax.

 

If it’s not practical for a creditor to serve a bankruptcy notice using any of these means, a court order can be obtained which enables creditors to serve the bankruptcy notice in a different way.

 

I have a bankruptcy notice, now what?

 

To comply with a bankruptcy notice, you must do one of three things:

 

  1. You must pay in full the amount indicated in the bankruptcy notice; or

 

  1. Organise an agreement with the creditor, for example a payment plan over a defined period of time. The creditor must agree to the payment arrangements conditions. It’s always suggested that the agreement is made in writing so you have proof of the agreement.

 

  1. Get some insolvency advice. At this point, you must not delay and get some advice. If you have a notice of bankruptcy, simply contact us here at Bankruptcy Australia on 1300 795 575 for a Free Consultation.

 

It is very important to note that all of these actions must be taken within the timeframe stipulated in the bankruptcy notice (usually 21 days from the date of the notice).

 

Can I get my Bankruptcy Set Aside?

 

If justified, you can apply to the court to have the bankruptcy notice set aside or cancelled. This should never be taken lightly however, because if there are unsatisfactory grounds to make an application then you will be subject to pay all the creditors legal fees which only raises the debt you owe to them.

 

If you do apply for your bankruptcy notice to be set aside, it’s always a wise idea to request that the court lengthens the timeframe for compliance with the bankruptcy notice, so you avert committing an act of bankruptcy while the court processes your application. To put it simply, don’t leave it to the eleventh hour.

 

To have your bankruptcy notice set aside, one of the following conditions must apply:

 

  1. The debt claimed on the bankruptcy notice does not exist;

 

  1. There is a defect in the bankruptcy notice;

 

  1. You have grounds for a counter-claim, cross demand, or set-off, equal to or exceeding the sum of debt issued in the bankruptcy notice; or

 

  1. The bankruptcy notice is an abuse of process.

 

What if the debt claimed on the bankruptcy notice does not exist?

 

To substantiate that the debt claimed on your bankruptcy notice does not exist, you must present evidence that:

 

– You have in fact paid the creditor the amount owing under the order or judgement; or

 

– You have appealed the order by launching proceedings to set aside the order or judgement.

 

In your application to set aside the bankruptcy notice, you can not simply say that you have an authentic argument to do so. You must have already filed the appropriate documents with the court that handed down the order. Along with this, you must have the ability to provide evidence to the Federal Circuit Court that demonstrates that you have a genuine case for grounds of appeal.

 

Further, if you do not initiate the process of setting aside the judgement or order before filing your application to set aside the bankruptcy notice, the Federal Circuit Court will not have the capacity to extend the timeframe for compliance under sections 41( 6A) and 41( 6C) of the Act. For this reason, you will have committed an act of bankruptcy.

 

What is a Defective Bankruptcy Notice?

 

A defect in the form or content of the bankruptcy notice appears when the creditor has failed to fulfill the requirements of the Act, in which case you might have grounds to request the bankruptcy notice to be set aside. Some defects are more weighty than others, and not all defects will make a bankruptcy notice void as these defects can be fixed at the discretion of the court under s 306( 1) of the Act.

 

Typically, the defect must be significant or inflict confusion over the actions you must take to abide by the bankruptcy notice for you to have the capability to set aside the bankruptcy notice.

 

There are some critical requirements of a bankruptcy notice and if these requirements aren’t met, the bankruptcy notice will subsequently be void. The following provides some examples where these crucial requirements have not been met:

 

– The creditor’s address on the bankruptcy notice has to make it reasonably practicable for the debtor to make payment (e.g. PO Boxes may not be suitable);.

 

– The creditor’s and debtor’s name on the bankruptcy notice must match the creditor’s and debtor’s name in the order or judgement;.

 

– Attached to the bankruptcy notice must be a copy of the judgement or order;.

 

– It is a requirement that there is a timeframe for compliance included in the bankruptcy notice;.

 

– If the creditor is claiming interest on the debt owed to them, the calculations must be stated in an independent document attached to the notice; and.

 

– If any part-payments made by the debtor, or any other allowed reductions, the total amount of these deductions must be specified in a separate document attached to the notice.

 

The following details some situations where bankruptcy notice defects have not been serious enough to make them void:.

 

– Failure to include the ACN of the company who is the creditor; and.

 

– The creditor’s address is listed as the address of their solicitors (presuming payment can be reasonably made to this address).

 

There are several other legal requirements that should be considered. These include:.

 

– The order or judgement must be at least $5,000, not including any post judgement interest being claimed by the creditor;.

 

– A bankruptcy notice can still be issued if the total amount is less than $5,000, provided that the total amount was higher than $5,000 when the order or judgements were pronounced;.

 

– A bankruptcy notice must be based upon a final judgement or order that is currently owing to a creditor under s 40( 3) of the Act. A final judgement is defined as a judgement which finally disposes of the rights of the parties involved;.

 

– A bankruptcy notice must be served with 6 months of its issue. The only exemption is if the Official Receiver (reg 4.02 A) has lengthened this timeframe;.

 

– The final order or judgement must not be stayed both at the time of issue of the notice and the time of its service. If a stay of execution is granted after service, it has no bearing on the bankruptcy notice;.

 

– An overstatement of the amount claimed to be owed to a creditor does not disqualify a bankruptcy notice, except if the debtor challenges the credibility of the notice in less than the timeframe for compliance (s 41( 5)); and.

 

– The order or judgment on which the bankruptcy notice is based can not be greater than six years old (s 41( 3)( c)).

 

Under what grounds could I counter-claim, set-off or cross demand?

 

To be successful using the grounds of counter-claim, set-off or cross demand, you will have to properly demonstrate to the court the following two items:.

 

  1. The counter-claim, set-off or cross demand is equal to or greater than the total amount claimed by the creditor in the bankruptcy notice. You must also satisfy the court that these claims are genuine and have a reasonable chance of succeeding; and.

 

  1. The counter-claim, set-off or cross demand was not set up in the proceeding where the creditor received the judgement on which the bankruptcy notice is based on. Failure to benefit from the opportunity to counter-claim, including any adversarial personal circumstances (for example lack of evidence or legal counsel), will not be adequate.

 

What is an Abuse of process?

 

An abuse of process ensues if you can demonstrate that the reasons behind the bankruptcy notice is to pressure you to pay a debt, instead of an honest effort by the creditor to invoke the court’s jurisdiction in connection with bankruptcy. If the former holds true, then you will have the potential to set aside the bankruptcy notice as a result of an abuse of process. To be successful using these grounds, you will need to present evidence of collateral purpose or unnecessary pressure.

 

What If I feel that I have grounds to act on one of these items above?

 

If you think you have a case for one of the previously mentioned reasons to contest your bankruptcy, you will need to get the following documents prepared, filed, and served if you want to apply for your bankruptcy notice to be set aside:.

 

  1. Application (Form B2); and.

 

  1. Affidavit.

 

Application.

 

You can locate the requirements for an application to set aside a bankruptcy notice in rule 3.02 of the Rules. You can either secure a final order or an interim order.

 

Final orders have to summarise the ideal result you want to receive and the legislative basis which the court can approve this decision. An example of a final order can be: “That bankruptcy notice (BN00231) issued on 15 June 2017, which was served to me on 1 July 2017, be set aside under section 30( 1) of the Bankruptcy Act 1966.” You would also need to supply a copy of the bankruptcy notice with your application.

 

On the contrary, an interim order has to outline any outcomes you wish before the application is finally decided upon, and the legislative basis which the court can grant this decision. An example of an interim order could be: “The time for compliance with bankruptcy notice (BN00233) be prolonged up to and including 7 days after the outcome of this application by the Court under section 41( 6A) of the Bankruptcy Act 1966.”.

 

Affidavit.

 

If you elect to make an application, it must be accompanied by an affidavit which describes the grounds of your application along with the date the bankruptcy notice was served to you. If you’ve already made an application to set aside the judgement of the bankruptcy notice, a copy of this application/s also needs to be attached. It’s crucial that your affidavit must comply with rule 3.02 of the Rules, or else your application may be refused and your request for an extension of time to fulfill the bankruptcy notice may not be approved.

 

Filing your application.

 

Once your documents are finalised, they will need to be filed with the courts either online or face to face at the Federal Circuit Court Registry.

 

There is a lodging fee that will need to be paid, however in some situations you can apply for a waiver of this fee.

 

Serving your documents.

 

Once you’ve lodged your application and affidavit and they have been stamped, you must personally serve these documents to the creditor within 3 days after the documents have been lodged.

 

If you are an individual, you must personally take the documents to the individual identified on the document and give it to them. If they refuse to take the documents, the individual serving them may put the document in the presence of the individual to be served and verbally tell the individual what the documents entail.

 

If you are a business, you must personally visit a registered office of the company and give the documents to a person servicing that business. You don’t need to present the documents to the businesses principal workplace, the Australian Securities and Investment Commission (ASIC) will provide you with a list of that company’s registered addresses.

 

If you would prefer someone else to serve the documents, you can get a bailiff of the court or a process server to serve the documents for a cost.

 

Financial Advice.

 

If you’re not sure whether you have grounds to set aside the bankruptcy notice, or you’re not sure whether you should invest the time and money to apply due to financial reasons, talk to Bankruptcy Australia on 1300 795 575 for free advice. As an alternative, you can visit our website for more information: www.bankruptcy-australia.net.au

 

Australia’s Household Debt Crisis Looms

Today in the news, former economics advisor John Adams revealed that Australia is too late to avoid an ‘economic apocalypse’ despite his incessant warnings to the political elites in Canberra. He continued to advise the Reserve Bank to raise interest rates to avoid household debt getting further out of hand.

 

This bubble is easy to spell out. Confidence! It’s the misconstrued perception that Australia’s last 20 years of sustained economic growth will never encounter any form of correction is most troubling. Australia survived the GFC and a mining boom and bust. In the meantime, Melbourne and Sydney house prices have not skipped a beat or taken a backward step. Unfortunately, the decision makers and powerful elite in this country reside in these two cities, and see Australia’s economic hurdles through an entirely different lens to the remainder of the country. It’s a two-speed economy spiralling uncontrollably.

 

I acknowledge that this impending crisis isn’t just as straightforward as house prices in our two biggest cities, but the median house prices in these cities are ever rising and contribute greatly to total household debt. The experts in Canberra realise there’s an overheated house market but appear to be reviled to take on any severe steps to correct it for fear of a property crash.

 

As far as the rest of the country goes, they have a totally different set of economic priorities. For Western Australia and Queensland particularly, the mining bust has sent real estate prices sinking downwards for years now.

 

One of the indicators that demonstrate the household debt crisis we are beginning to see is the surge in the bankruptcy numbers across the entire country, especially in the 2017 March quarter.

 

(source: https://www.afsa.gov.au/about-us/newsroom/media-release-regional-personal-insolvency-statistics-march-quarter-2017).

 

In the insolvency market, our team are examining the disastrous effects of house prices going backwards. Although not the prime cause of personal bankruptcies, it clearly is a crucial factor.

 

House prices going backwards is just part of the problem; the other thing is owning a home in this country allows lenders to put you in a very different space as far as borrowing capacity. Put simply, you can borrow far more if you are a home owner than if you are not a home owner. I bankrupt people everyday and the extent of debt differs significantly from the non-home owner to the home owner. Lending is based upon algorithms and risk, so I suppose if you own a home you’re more likely to have reliable income and less likely to end up bankrupt, so consequently you can borrow more. If you own a home in Sydney and Melbourne, you’re a safer risk than if you own a home in Mackay, simply because in one area the median house prices are booming and the other is going backwards, as it’s been doing so for years.

 

In conclusion, it seems we are running into a wall at full speed, and there are few people suggesting we slow down. If you want to know more about the looming household debt crisis then give us a ring here at Bankruptcy Australia on 1300 795 575 or visit our website for additional information: www.bankruptcy-australia.net.au

ATO Debts Getting Out of Hand? Notice to all ABN holders, your ATO Debts may now damage your credit rating. Beware of ATO Bankruptcy!

There is unfortunate news for company owners who have an ATO debt from 1 July 2017. Small businesses should be careful of ATO Bankruptcy since the ATO may reveal details of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it far more challenging for small businesses to receive credit, possibly crippling them. How could this bear upon you? You may be affected if you find yourself in one of the following three categories:

 

  1. Have an ABN (i.e. you own a business and/or you are a contractor);.
  2. Have past debts with the ATO that are in excess of $10,000 and are more than 90 days overdue; and.
  3. You are not in any sort of payment arrangement with the ATO.

 

Just so you’re aware, the ATO must first warn you before they impart your debt information to any credit agency.

 

If your ATO debts seem to become uncontrollable and you don’t want your credit rating impaired then you have at least one workable option: Set up a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.

 

On the other hand, if you think there is simply no hope or the ATO is threatening legal action against you due to your unpaid ATO debts, then bankruptcy may be a plausible option for you. If you would like to know more about how to get out from under the crippling burden of personal or business debts, just get in contact with us here at Bankruptcy Australia on 1300 795 575 or visit our website for more information: www.bankruptcy-australia.net.au.