Many Australian households are experiencing financial hardship. Recent increases to our official interest rates and electricity costs are adding to this pressure.
There is a common misconception about bankruptcy and home ownership. If you have equity in your home - it is very likely to be sold if you enter into bankruptcy. However, many people are in a mortgage that is close to 100% of the current value of their home.
In such a case, there is no point for the Trustee to sell the home as they may incur no return or even lose money after selling costs. If you have some equity and the home is subject to a joint ownership, the trustee will offer the other owner to buy out your share of the equity. This could be your spouse. It is not the Governments priority to move people out of their homes if there is no equity, however the Trustee will place an initial caveat over the property. The worst thing that anyone can do is to transfer the property into someone else’s name prior to going bankrupt or selling at a reduced cost to a related party. Such action could be deemed bankruptcy fraud and the consequences are severe and may include a jail sentence.
To understand your rights it is important to speak to an expert. A1 Debt Assistance offer free telephone consultations Australia wide on 1300 79 74 73 and also have free information available on www.a1debtassistance.com.au
Bankruptcy can often save your house, as it frees up your budget and allows more of your income to go back towards your mortgage. Often people hang on to their debts for too long and by the time they seek protection under the bankruptcy act, they have already lost everything. Had they understood their rights under the bankruptcy act, they would not have had to hit rock bottom. Financial stress brings a lot of unwanted side effects, these include general health problems due to stress resulting in a weakened immune system, depression and relationship trauma.
One should only look at bankruptcy if it is impossible to pay your bills as and when they fall due - that is when you are officially insolvent. Bankruptcy will affect your credit rating for a long time to come, but hopefully we have learned from our mistakes and credit is a thing of the past. Obtaining a fresh start can change your life. Many people are seeking bankruptcy protection on a daily basis, they may be your neighbours or friends, the point is - it is a private matter and nobody needs to know. If you have a car on finance and you can still afford the repayments after going bankrupt, you can keep this car.
If you consider bankruptcy as an option for yourself or a friend, don't try to wing it - get professional help. There are a lot of elements to be taken into consideration when considering bankruptcy therefore it is important to be advised correctly so that you are in a position to make an informed decision. Seek the help of a professional - it may be the best investment you can make for your future.
You don't have to lose your home by going bankrupt, you may in fact save it.
A1 Debt Assistance are an Australian organisation, specialising in Bankruptcy services, helping individuals and small business.
We service all of Australia and offer an initial free phone consultation, to establish each callers situation and provide them with the pro's and con's of going bankrupt, based on the callers circumstances. In many cases we suggest alternative options free of charge.
Based in Seaford, Victoria, we prepare and complete all the documentation as required under the bankruptcy act on behalf of our clients from all around the country. Our fee starts at $399. Visit our website for more detailed information. www.a1debtassistance.com.au
P: 03 9786 9921
M: 0438 305 665