Is Bankruptcy Right for Me?
BankruptcyBankruptcy is one of the hardest things anybody has to ever face. Making the best decision is not easy. That is why we have produced a free eBook – The Big Five – to help you make a fully informed choice. At Bankruptcy Experts Darwin we recommend you do not move forward with bankruptcy before you have read this, and you have the answers to the 5 big bankruptcy questions.


Big 5 Questions
– Is going bankrupt right for me?
– Will I lose my job?
– How will my income be affected?
– Can I keep my house or car?
– Will I lose my business or can I still be self-employed?
If you are thinking about bankruptcy, having the ability to answer these questions is essential. Once you have all this information then you will understand exactly what will happen to your business and assets should you choose to declare bankruptcy. Do not hesitate to download our eBook for free and educate yourself today. Or, if your questions are more complicated, call us at Bankruptcy Experts Darwin directly on 1300 795 575.





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Bankruptcy Options
Bankruptcy vs
Debt Agreement
Is going bankrupt my only choice? No of course not you always have a choice, you may wish to consider a debt consolidation loan. However, the most popular alternative considered instead of bankruptcy is a Debt Agreement (Part IX). Study the graph to work out the relative benefits and disadvantages of Bankruptcy, Debt Agreements, and Personal Insolvency Agreements, so you can make an educated choice.




Why Do Some Business Say Debt Agreements or Personal Insolvency Agreements?
There is a good reason some bankruptcy services spend a lot on TV commercials … there is a lot in it for them if you select them … In a desperate bid for your custom, things quickly turn into a cat fight, with one business turning against another. And everyone claims they are the best. We are not here to compete. Here at Bankruptcy Experts Darwin we are here to inform you so you can decide for yourself.
Debt Agreements
Personal Insolvency Agreements



Should I Consider a
Debt Consolidation Loan?
A debt consolidation loan is in some cases the best plan. What the plan does is to pack all the assorted loans into one, larger loan. There may be a cost to consolidate the debts. One of the biggest issues to think about is your credit rating, often people thinking about bankruptcy have a badly damaged credit rating so a debt consolidation loan is just not an option.



Who Will Know About My Bankruptcy?
An individual’s personal privacy is a big deal when you file for bankruptcy. The days of your name being posted in the paper as a bankrupt are long gone. In fact, there are usually only four types of people who will learn about your bankruptcy:
1.) The people you personally tell.
2.) Your creditors or the people you owe money to.
3.) People who request to access your credit file, such as when you apply for a loan. (this involves you giving them authorization first), Applying for a loan is something you will not be doing for the 3 years you are bankrupt because nobody will give you a loan while you are bankrupt.
4.) Anyone who looks you up on the National Insolvency Index (which people must pay to gain access to).
There is no need for you to worry, you are not a criminal and you have not failed. You are simply somebody who wants to put an end to crippling debt and move on with their lives. At Bankruptcy Experts Darwin, we are here to help. Download our Free ‘The Big 5’ e-Book for comprehensive information about insolvency and your employment or give us a call on 1300 795 575.


Bankruptcy and the Family Home



If I File for Bankruptcy Can I Keep My House?
In many cases the answer is yes. If losing your home is a significant concern for you then the very best way to find the answer is to call us here at Bankruptcy Experts Darwin on 1300 795 575. As soon as you tell us about your situation, we can give you a very clear understanding of your options over the phone. Virtually everyone is emotionally attached to their home; it is where the kids have grown up, it is where you enjoy life on a day to day basis. People often push themselves to the edge of madness attempting to not lose the family home, presuming this is an inescapable consequence of bankruptcy.



Suppose My House Has a Lot of Equity?
What Can I Do?
If your home has plenty of equity and you are still drowning in debt, there are still some possibilities available to you. In fact, this applies also to vehicles or other assets you might have. In this scenario what you cannot afford to do is assume that everything will be okay. It is the bankruptcy trustee’s job to sell whatever assets you have when you file for bankruptcy and put that money towards your debts. Getting the wrong advice here could be disastrous! Before you take your next step get some advice, at Bankruptcy Experts Darwin we provide a complimentary initial consultation, so call us today on 1300 795 575.





What If My Partner’s Name Is on the Mortgage?
Often when a couple purchase a house a single income is quite often not enough to get approval for the mortgage, so the bank or lender will generally have both of these partners sign up for the credit. Once the house is purchased both names are listed as shared tenants on the homes mortgage and the title deed of the property. Let us say Mick and Susie, who live in regional Northern Territory, bought a house 4 years ago for $400,000 without any deposit so their home loan was also $400,000. Mick is a plumber and needs to declare bankruptcy but Susie has a great job teaching at a high school and does not need to declare bankruptcy. Unfortunately, the house has not increased in value in the 4 years they have owned it and they also have only managed to pay the interest on the home loan in that time. So ultimately, they still have a $400,000 home loan on a house worth $400,000. Mick can then declare bankruptcy and as long as they keep covering the mortgage, rates etc, they can continue to keep the house for the 3 years Mick is bankrupt.
This action will, in no way, affect Susie’s credit history rating or require her to declare bankruptcy at the same time. There is plenty to take in when it comes to homes and going bankrupt so if you have concerns about your house, do not think twice about calling us at Bankruptcy Experts Darwin on 1300 795 575.






How Is Equity Determined?
This is the most essential part of this procedure. Why? Simply put, if you get it wrong you are going to lose your house. There are a number of things you should understand here. Firstly, your gut reaction or assumption about the true worth of your property is most likely generous. The majority of people expect their house is worth much more than it actually is. When you declare bankruptcy the trustee may ask how you determined the price for your house. In some cases they might ask for more detail about your valuation, perhaps a rates notice, a real estate agency’s appraisal or a registered valuation. A practical technique would be to search www.realestate.com.au then click on the ‘Sold’ tab on that particular website and look for the most recent home sales in your street or neighbourhood. This will assist you to get some idea of the value of the market at the moment. Always keep in mind, the valuation is based upon a quick sale not a sophisticated real estate agent’s marketing project. Understanding this step is essential, at Bankruptcy Experts Darwin we can provide you guidance before moving on, call us on 1300 795 575.



What Factors Would Contribute to Losing the House?
Equity! If you are up to date with your monthly payments then the most important issue in bankruptcy is equity. If you possess $300,000 equity in your house and you have $100,000 worth of unpaid debt and no other means to pay the debt then the trustee sees your equity as a way to pay your debt and so they will more than likely sell off your home to repay the unpaid debt and give you whatever funds remain from the sale.





Will the Bank Let Me Keep My House Even If I’m a Bankrupt?
Why would the bank want bankrupt clients? Wouldn’t they want to sell your house and not take the chance on you? Consider this, the bank that has generously provided you the money for your residence is making a good monthly income in interest from you, month after month. Provided you keep up to date with your payments then the mortgage lender really wants you in your house at all costs. Having said that, you keeping your home is not the bank’s call. If a trustee makes a decision that there is sufficient equity in your home to liquidate it, they will force you and the bank to sell your home.



What If I Have Received a Notice From the Tax Office?
One of the most important things to note is that YOU MUST NOT LET A TAX OFFICE NOTICE LAPSE. It will be best to get in touch with us at Bankruptcy Experts Darwin on 1300 795 575 as soon as you receive a tax notice. We can then help you work through the procedures as rapidly as possible to get the most favourable outcome for you.
When we have assessed your needs, we can develop an action plan to help advise to you the very best strategy. From this point, you can examine your options and decide on where you go from there.


Bankruptcy and Employment
Will My Employer
Be Advised?
Normally, there is no good reason for your employer to be advised of your personal bankruptcy. When you make over the income threshold and you are asked to make an income payment, you will organize those payments yourself – it does not go through your workplace.
Will I Lose My Job If I File for Bankruptcy?
When bankrupt there is a distinction between currently being employed and applying for a new position. Rarely will you ever lose your job because you have filed for bankruptcy. As an example, it is difficult to get into the Defence Forces as a current bankrupt, but they do not terminate your job if you become bankrupt when you are currently employed by them.
Each professional body has its own rules, and this differs from one state to another. Our advice is to speak directly to your industry-specific experts, who will understand precisely how your unique situation works in the Northern Territory. This is well worth doing before moving forward with your bankruptcy, as it may be a critical factor in your decision. Check out the chart below for a list of some professions where seeking further, industry-related assistance is a must. Some industries will not have a problem with your bankruptcy so long as it is all above board. Please feel free to call us at Bankruptcy Experts Darwin on 1300 795 575 with any questions you have


Bankruptcy Income Thresholds
How Much Can I Earn When I’m Bankrupt?
In the NT there is no limitation on how much you can earn when you are bankrupt. Before filing for bankruptcy, however, it is important to consider your salary and make certain bankruptcy is the best option for you before proceeding. Find out how much you can make before you need to start paying funds to your creditors via your trustee. There are also other things to think about with bankruptcy income such as Child Support, Hardship & Self Employment. If you are worried about this simply call us at Bankruptcy Experts Darwin on 1300 795 575.





Bankruptcy and Income
Every year in March and September the Government audits income threshold figures based on the current cost of living. This means that the amount of money you are able to make (net income, after tax and child support) while bankrupt is always changing, and your trustee will need to determine your real net income. This real net income figure will depend on a variety of factors such as child support, salary sacrifice, superannuation payments and business expenses.



What Can My Partner Earn If I Go Bankrupt?
In most cases in the Northern Territory, your partner is seen as a totally separate entity in the eyes of the law and will not be affected financially by your bankruptcy. When it comes to a joint loan, you should first seek further advice. Call Bankruptcy Experts Darwin today for an obligation-free chat on 1300 795 575.





Who Is Considered a Dependent?
A dependent can be any person, of any age, who lives with you and earns no more than $3,708 each year. If you have children who do not live with you full-time, and you pay child support for them, you cannot class them as dependents. By the way, Centrelink payments are considered income for your dependents.



What If My Spouse or Partner and I Both Need to Go Bankrupt?
If, as a couple, you both have to declare bankruptcy and you have no dependents, then you are permitted to earn up to $1,083.01 net each. The same income rules apply to each person independently. If you have children refer to the income thresholds in the chart above. If you have further concerns call us at Bankruptcy Experts Darwin on 1300 795 575.


What is a Personal Insolvency Agreement?
This is an adaptable agreement in between you and your creditors. It is taken care of through a trustee who administers just how much you need to pay and when. Once those conditions have been fulfilled, you are then free to begin afresh with your life’s new chapter.
What is a Debt Agreement?
A debt agreement allows a debtor to enter into an arrangement with their creditors to satisfy their debts without having being made insolvent.
You cannot enter into a Debt Agreement if you have already been bankrupt, or you are presently already in a debt agreement. Keep in mind, there are also income limits, property market valuations, and unsecured debt value constraints. If you would like to know more please connect with us at Bankruptcy Experts Darwin on 1300 795 575.
Debt Agreements (Part IX)
Debt Agreements are complicated and can have serious far-reaching implications. This page contains basic and general information only.
In general, you may wish to think about a Debt Agreement when the following applies:
If you have significant assets to protect, as long as they are valued less than $236,128.80.
When you have smaller debts up to the value of $113,349.60 in total.
You do not make more than $88,547.55.
Remember it is still an act of bankruptcy, if your creditors do not accept the Debt Agreement, they can make use of it to apply to the court to make you bankrupt. Debt Agreements are only appropriate for people in quite specific circumstances.
How much you pay back?
This is a negotiated amount depending upon your circumstances, remember if you are unemployed or do not earn enough you most likely will not qualify. For example, if you have proposed to repay 90% of all your outstanding debts over a 5-year period, then all creditors will get 90% of what you owe them. Remember if you do not continue and fulfill the agreement then you are back to square one.