Signs You May Want To Consider Bankruptcy

Personal bankruptcy is never the ideal predicament to be in, however lots of people find relief in addressing their financial difficulties and starting afresh. No one is perfect, and people make mistakes. But a lot of people avoid filing for bankruptcy for far too long. They would prefer to ignore the elephant in the room and spend many years fighting just to make ends meet. Yes, bankruptcy is never appealing and lots of individuals find it embarrassing, nonetheless it is the very first step towards financial freedom. Always remember that there is a life after bankruptcy.


If you’re struggling financially and contemplating bankruptcy, it’s relevant to understand the warning signs. Here are a couple of signs that you’re in serious financial distress.


Making minimum repayments only


One of the clearest signs of financial difficulties is when you can only afford the minimum repayments on your loans, yet your income source isn’t increasing. Interest charges and fees will soon force you to make a change, either by finding a second job or consolidating your loans. And if you don’t make a change, something must give eventually. Obviously, it’s alright to have a balance on your credit card debt for a few months, but it’s useful that you think long-term. If you’re sinking in interest charges and can only afford to make the minimum repayments, it’s time to make a change.


No savings


If you’re living paycheck to paycheck and realise that your savings are being used to make repayments on your loans, you’re heading for trouble. The majority of financial specialists strongly recommend having three to six months of living expenses in a specialised savings account. This account should cover all of your expenses for that time frame: rent, food, transport, bills. What happens if you lose your job? Or can’t work because of illness? And if you’re buying luxury items while you have high interest loans overdue, you should really get your priorities straight. Without three to six months of living expenses in your savings account, personal insolvency may well become a reality.


Using credit cards to pay your bills.


Credit Cards are a helpful way to purchase items by giving yourself a short-term loan, especially in today’s cashless society. Generally, there is an interest-free period of a month or two, but after this time, the interest rates and fees are exceptionally high. If you find yourself using credit cards to pay for bills due to the fact that you simply don’t have enough cash, you’re on the brink of disaster. Some people will even have various credit cards so they can pay off one with another. This is a key sign that you’re heading for personal bankruptcy. Credit cards can be really detrimental if used wrongfully. Paying bills with debt only leads to more debt, with big interest charges added on. If this sounds familiar, seek professional advice asap.


Debt collectors are contacting you


It may seem obvious, but if debt collectors are continuously plaguing you on the phone or in the mail, you should look at bankruptcy help. Consider it this way; creditors who conclude that they aren’t able to recoup their money from you will sell your debt at a lower rate to debt collectors. If lenders have lost faith in your capacity to pay your bills, there is unquestionably a problem. If you’re frightened to answer the phone or check your mail as a result of debt collectors, it’s time to take action. You can only avoid those threatening phone calls and letters for so long before your quality of life begins to disintegrate. Pick up the phone and call the experts, that’s what they’re there for.


Losing sleep


Are you so distressed about your financial future that you can’t sleep at night? This is possibly the biggest warning sign that you’re heading for bankruptcy. When your health and happiness are suffering because of your financial situation, it’s time to recognise that you need help simply to improve your quality of life. Bankruptcy is not the end of the world, and is, in truth, the first step towards financial freedom. Talk with a bankruptcy expert to find out what options you have.


If you’re experiencing any of these warning signs, chances are that you’re already in financial trouble and are heading towards bankruptcy if changes aren’t made. Personal insolvency is the final step in a long process, and usually there are options before you need file for bankruptcy. To find out what options you have, or to talk with someone about your circumstances, contact Bankruptcy Australia on 1300 795 575 or visit

Bankruptcy Advice – Filing For Bankruptcy and Divorce

Everybody goes through challenging times in their life. Loss of employment, severe illness, and unexpected pregnancies are just a few of these. A leading reason why these events are so stressful is because financial difficulties are often accompanied with them. In most cases, financial problems are the leading cause of divorce, and conversely, divorce can be the leading cause of bankruptcy. So, it’s not surprising that we sometimes see these two situations happen at the same time. Even though both actions are separate, the emotional features of such arrangements can create possible issues that cross paths and can create a drawn-out and distressing process for both parties.


If you and your companion have come to the decision that divorce and bankruptcy are the best options in moving forward with your lives, there are a variety of options that you must keep in mind. This article aims to shed some light into a common question experienced by many in this position– which comes first: bankruptcy or divorce? Sadly, there is no ‘one-size-fits-all’ approach to answer this question, as there are various issues to consider.


To answer this question, you should go over your individual circumstances with a knowledgeable bankruptcy expert. You will need to discuss how you intend on dissolving the marriage– will the divorce be contested or uncontested? Or will particular issues be contested that will require lawsuits? Usually, divorces are a very demanding process and there will be issues that develop without your prior consideration. This simply emphasises the value of adequate research and planning.


If you’re confident that your soon to be ex-spouse will not agree on the best ways to divide your assets and debts, and litigation is more than likely, the first step you should take is to seek a capable divorce lawyer. The key to a successful conclusion for both bankruptcy and divorce is having competent legal support. Both your bankruptcy professional and divorce lawyers will want to correspond regularly to make sure they have all relevant information to give you the best case possible. While both events are separate, there are topics that will emerge in both cases that can considerably affect the result of each outcome.


In some cases, filing for bankruptcy prior to filing for divorce is favourable. Both you and your spouse have the choice of filing a joint bankruptcy, in addition to individual bankruptcies. Usually, both you and your spouse will owe creditors collectively, in which case filing for joint bankruptcy may be an attractive option. If you have not filed for divorce at this point, then bankruptcy can substantially help to eliminate joint debt, and aids in the distribution of property when the divorce is eventually filed. While bankruptcy does not split joint assets and debts, it can often eliminate sizable amounts of joint marital debt.


The most frequent concern here is that filing for joint bankruptcy means that you and your spouse will need to make joint decisions. If this is not attainable, then joint bankruptcy will not be an option. Also, once a divorce is filed, it’s highly likely that both parties will not come to an understanding issues relating to bankruptcy, further complicating the process. If your soon to be ex-spouse declines to file for bankruptcy, then the process changes even further. Always bear in mind that a divorce does not have any effect on filing for bankruptcy, either jointly or individually, and this can be done at any time prior to, during, or after a divorce.


While both bankruptcy and divorce are difficult and time-consuming processes, they’re also a chance to move forward with your life and start afresh. Understanding the intricacies of both actions is the key to successful outcomes, so an experienced legal support team is very important. If you’re in a position where you and your spouse can agree and make joint decisions, then normally both actions will be less expensive and time consuming. What is clear is that you should spend the time and money on proficient law firms relating to both your divorce and bankruptcy. For additional information, or to talk with someone about your personal circumstances, contact Bankruptcy Australia on 1300 795 575 or visit


Bankruptcy in Australia – What happens to my income?

Money is always a worry with Bankruptcy, so I would like to talk you through a few of the points to consider around income and Insolvency

Bankruptcy in Australia is always going to be complex and troublesome, specifically because it involves money and people’s livelihoods. A lot of people always ask us how bankruptcy will impact their income, because insolvency is going to limit just how much you can make. When it involves Bankruptcy it is mainly going to consider your overall income and the number of dependants that you have

How is this calculated?

You should understand about Bankruptcy that there are in fact set quantities that you can earn– yes, this indicates that you may not be left destitute, but neither does this mean that you can be making a six figure paycheck and not be paying back bankruptcy debt.

Net income is the pre-tax/ in the hand quantity you gain annually.

A dependant is somebody who lives with you and earns no more than $3,124 each year (regardless of their age).

Can this be raised?

Yes, under some conditions you can get a hardship variant that increases the threshold amount, if you have financial obligations in Australia like health-related, child care, considerable travel to and from work, or a situation where your partner used to be employed but is now not able to support the household income level.

Will my boss be told about this?

No, the advantage about Bankruptcy is that your employer will not be advised when you apply for bankruptcy.

What about child support?

Child support is always considered in insolvency– this indicates that if you get child support, that is not factored in as income. However if you pay child support this will be typically obtained from your net income amount, for instance if you supply $5,000 child support every year and you have no dependents residing with you then your altered net income limit will be $55,332.10.

What about tax-time, do I continue to get money back?

If one of your creditors is the ATO (for unsettled taxes), then your tax refund will likely be taken by the ATO when you are insolvent to contribute towards your tax bill. If you do not have a tax debt then you will retain your tax refund provided that doesn’t take you over your threshold income level caps.

So what is regarded as income?

There are a lot more concerns surrounding income and Bankruptcy– especially because a lot of individuals will justify with what is thought of as ‘income’- if you’re not sure, it’s a great idea to get specialist personal bankruptcy advice in Australia.

Without a doubt some of the most essential features of Bankruptcy is that you ought to get recommendations as early as practical because it will make sure you are taking the best path. It is generally going to be better to be over prepared because when it comes to Bankruptcy knowledge is power, and once you have submitted the documentation it’s far too late to change your decision.

If you believe when it comes to Bankruptcy, your case is more intricate than what is pointed out above, then I would strongly suggest that you get expert guidance in Australia.

If you wish to learn more about what to do, where to turn and what issues to ask about with Bankruptcy, then don’t wait to contact Bankruptcy Australia on 1300 795 575, or explore our website: