Filing for Bankruptcy in Bunbury – Choices, Choice, Choices.
When it comes to Filing for Bankruptcy in Bunbury, there are a great deal of choices that we get given depending on who we are, who we talk to, and exactly what has gone wrong. One of the most common trouble I see with Filing for Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.
Should I consolidate my debts?
When it comes to Filing for Bankruptcy in Bunbury, much of the information you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation provider, I can promise you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very basic way: charging you a fee for aiding you wrap each of your credit card and personal loans into a single neat and tidy package.
I hate to tell you this but these people won’t be doing it for free. Please do not misunderstand me: if you consider your financial issues in Bunbury may be fixed by paying less interest, then go on and explore the options. Even a small amount of interest saved over years easily adds up.
Typically I find if you read this blog you’ve probably attempted to consolidate your debts already and come to the following realisations such as these:
– Your credit rating is no good, and your credit file definitely has nonpayments on it so not a single person will offer you a loan, consolidated or otherwise,.
– By the time you work it all out, you’re so far down a hole that saving on a bit of interest simply won’t make a lot of difference,.
– You’ve probably gotten to the stage where you’ve had more than enough, you’re emotionally exhausted, you can’t go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.
Personal Insolvency Agreements.
So when it relates to Filing for Bankruptcy in Bunbury, what’s the huge difference between a Debt Agreement and a Personal Insolvency Agreement?
Flexibility is the main thing Personal Insolvency Agreements (PIA) have in their favour. They’re also administered by a registered and – might I add – regulated trustee including the government trustee ITSA, and not a private business that advertises on TV. Essentially this method resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts arrange 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 rather than cash. This might sound acceptable when it comes to the complications with Filing for Bankruptcy– that is until you realize that one of the problems with PIA’s is that 75 % of the people you owe money to will need to come to an understanding the deal. If they do not, your proposal is rejected or needs to be renegotiated.
Generally people you owe money really want all their money back plus interest. Sometimes they’ll opt for beneath the amount you owe them – it’s typically a percentage of the debt– but let me stress this aspect: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will in fact settle for.
In most cases you’ll have to pay back 100 % of the debt owed. This is not 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 Filing for Bankruptcy and insolvency I’ve come across 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 clever 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 Bunbury aren’t going to get that lucky!
If you wish to learn more about what to do, where to turn and what questions to ask about Filing for Bankruptcy, then feel free to contact Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsBunbury.com.au.