Bankruptcy in Sunshine Coast - Choices, Choice, Choices

When it comes down to Bankruptcy Sunshine Coast, there are a ton of options that we get given depending on who we are, who we speak with, and just what has happened. One of the most common trouble I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Sunshine Coast, a lot of the info you receive on this subject 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 business is a multi-billion dollar industry making money in one very basic way: charging you a fee for aiding you wrap every one of your credit card and personal loans into just one neat and tidy bundle.

I hate to tell you this but they aren't going to be doing it free of charge. Please don't misunderstand me: if you think your financial problems in Sunshine Coast may be fixed by paying less interest, then go on and look into the choices. Even a small amount of interest saved over years rapidly adds up.

More often than not I find if you read this blog you've most likely tried 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 no one 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 tiny bit of interest simply won't make a great deal of difference,.

• You've most likely gotten to the point where you've had more than enough, you're emotionally drained, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes down to Bankruptcy in Sunshine Coast, what's the 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 - might I add - regulated trustee featuring the government trustee ITSA, and not a private agency that advertises on TV. Ultimately this method resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and they negotiate a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or perhaps you can offer them assets rather than cash. This might sound okay when it comes to the troubles with Bankruptcy - that is up until you realize that one of the obstacles with PIA's is that 75 % of the people you owe money to have to agree on the deal. If they don't, your proposal is rejected or will need to be renegotiated.

Generally people you owe money really 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 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.

Most of the time 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 Bankruptcy and insolvency I've heard of creditors settling 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 smart 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 Sunshine Coast aren't going to get that lucky!

If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website: bankruptcy-advice.com.au/Sunshine Coast .