When it comes to Filing for Bankruptcy in Coffs Harbour, there are a number of choices that we get given depending upon who we are, who we talk to, and what exactly has happened. The most common trouble I see with Filing for 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 Filing for Bankruptcy in Coffs Harbour, a lot of the info you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can promise you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for aiding you wrap all of your credit card and personal loans into one neat and tidy package.
I hate to tell you this but these guys won’t be doing it free of charge. Please do not misunderstand me: if you consider your financial problems in Coffs Harbour can possibly be solved by paying less interest, then go on and investigate the options. Even a small amount of interest saved over years easily adds up.
Typically I find if you are reading this blog you’ve most likely tried to consolidate your debts already and come to the following realisations similar to these:
– Your credit rating is no good, and your credit file definitely has defaults on it so no one 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 just won’t make a great deal of difference,.
– You’ve undoubtedly gotten to the stage where you’ve had more than enough, you’re emotionally worn down, 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 Coffs Harbour, what’s the difference between a Debt Agreement and a Personal Insolvency Agreement?
Adaptability 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 company that advertises on TV. Essentially this method resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they arrange a deal on your behalf. You can give a lump sum settlement figure or take part in a payment plan, or you can offer them assets as an alternative to cash. This may sound acceptable when it comes to the issues with Filing for Bankruptcy– that is until you discover that one of the difficulties with PIA’s is that 75 % of the people you owe money to will have to agree on the deal. If they don’t, your plan is denied or ought to be renegotiated.
Generally the people you owe money want all their money back in addition to interest. Sometimes they’ll go for less than the amount you owe them – it’s generally a percentage of the debt– but allow me to 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 actually settle for.
In many 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 entering 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 brilliant lawyers and some very clever structures in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Coffs Harbour aren’t going to get that lucky!
If you would like to learn more about what to do, where to turn and what questions to ask about Filing for Bankruptcy, then feel free to get in touch with Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: www.bankruptcyexpertsCoffs Harbour.com.au.