Julia
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Declaring yourself BANKRUPT!!!
- Thread starter hitmanlam
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There's plenty of misinformation in this thread.
Waza knows what he's talking about, read everything he wrote.
It sounds like, if you're earning $55k you may struggle to settle with a part x or bankruptcy as you aren't actually insolvent. i.e. you have the ability to make repayments.
However, if you were to become unemployed, and you have no other assets, you would potentially be a good candidate for a part x. This means you could settle with the bank for a percentage of the debt. Under part x, if the bank agrees to a lump sum settlement you are able to then go and earn as much as you want, travel etc. The risk is that they won't accept your offer, forcing you into bankruptcy and then you would be under the microscope for 3 years. I think the threshold is around $47k, 50% of any earnings above that level would go to your creditors.
It may be worthwhile speaking to an Insolvency professional to work out the best course of action.
Also, ignore all of the mean posts/personal attacks in this thread. Plenty of wealthy and successful individuals have been through 1 or more insolvencies throughout their lives. From reading all of the posts in this forum, most people here have made plenty of poor investment decisions in the past - it's all part of the learning process.
Given time, you will be able to obtain credit again, there's plenty of willing lenders out there.
Waza knows what he's talking about, read everything he wrote.
It sounds like, if you're earning $55k you may struggle to settle with a part x or bankruptcy as you aren't actually insolvent. i.e. you have the ability to make repayments.
However, if you were to become unemployed, and you have no other assets, you would potentially be a good candidate for a part x. This means you could settle with the bank for a percentage of the debt. Under part x, if the bank agrees to a lump sum settlement you are able to then go and earn as much as you want, travel etc. The risk is that they won't accept your offer, forcing you into bankruptcy and then you would be under the microscope for 3 years. I think the threshold is around $47k, 50% of any earnings above that level would go to your creditors.
It may be worthwhile speaking to an Insolvency professional to work out the best course of action.
Also, ignore all of the mean posts/personal attacks in this thread. Plenty of wealthy and successful individuals have been through 1 or more insolvencies throughout their lives. From reading all of the posts in this forum, most people here have made plenty of poor investment decisions in the past - it's all part of the learning process.
Given time, you will be able to obtain credit again, there's plenty of willing lenders out there.
Can't agree more!!!
I went bankrupt last April for around $18,000. A few years ago I had to go on a Carer Pension to look after my wife. My income is now around $15,000 pa, and this was the
reason I could no longer cope with credit cards and personal loans.
Even though we own our home, these loans were unsecured which does make things a little less complicated.
In my case any amount above $1500 that goes into my bank account, that is not a Centrelink or Commonwealth payment, 'may be' taken by ITSA. It is up to the bank to notify them accordingly.
During September I bought and sold $1000 in small cap. mining shares with no problem.
This was no different to what I usually traded. Even though CBA Mastercard was one of my creditors, I believe CBA are reasonably broadminded about the situation. I daresay it might be a different outcome if I dropped $10,000 into Comsec.
Your credit rating will also be effected for 7 years.
I hope this has been a little help, chrisalex
reason I could no longer cope with credit cards and personal loans.
Even though we own our home, these loans were unsecured which does make things a little less complicated.
In my case any amount above $1500 that goes into my bank account, that is not a Centrelink or Commonwealth payment, 'may be' taken by ITSA. It is up to the bank to notify them accordingly.
During September I bought and sold $1000 in small cap. mining shares with no problem.
This was no different to what I usually traded. Even though CBA Mastercard was one of my creditors, I believe CBA are reasonably broadminded about the situation. I daresay it might be a different outcome if I dropped $10,000 into Comsec.
Your credit rating will also be effected for 7 years.
I hope this has been a little help, chrisalex
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If OP is an accountant by profession then things are so out of whack in western society it's not funny.
Too spend 3 years at a tertiary institution learning (and passing) core units on financial responsibility, economics, business ethics etc and then obtain a 50k loan at 16% on a 55k p.a. salary is sheer stupidity! (No offense)
This in itself is a somewhat exceptional incident (not all people studying business/accounting are this irresponsible) - BUT to be able to pass a business course puts the OP in the higher echelon of intelligence in our community (at least top 50%). Or perhaps this is the problem. The smartest people think the ownly way to get ahead is by using leverage because it is what all the other smart people are doing.
I hope everyone is going to enjoy living in a deleveraging society for the next generation.
The sad part of the story is the future reality that people who are honest savers are going to have their cash deposits inflated away because they were not aware/left in the dark by the world's need to hit the printing presses.
Too spend 3 years at a tertiary institution learning (and passing) core units on financial responsibility, economics, business ethics etc and then obtain a 50k loan at 16% on a 55k p.a. salary is sheer stupidity! (No offense)
This in itself is a somewhat exceptional incident (not all people studying business/accounting are this irresponsible) - BUT to be able to pass a business course puts the OP in the higher echelon of intelligence in our community (at least top 50%). Or perhaps this is the problem. The smartest people think the ownly way to get ahead is by using leverage because it is what all the other smart people are doing.
I hope everyone is going to enjoy living in a deleveraging society for the next generation.
The sad part of the story is the future reality that people who are honest savers are going to have their cash deposits inflated away because they were not aware/left in the dark by the world's need to hit the printing presses.
I'm sorry, I am so sick of reading this sort of thing. Honest savers? Where does the interest come from do you think? These "honest savers" are choosing an inflation hedge plus a relatively small but safe return by investing funds with a bank who lends them out. If there is no market for loans there's no interest return. If the response to this is that the bank interest returns are too low - find an institution with a higher return (and lower profit margin). That is NOT the fault of those who are doing the borrowing.
The only difference between a saver and a borrower when looking at it from an investment perspective is that the saver is choosing a very conservative risk approach by utilising funds they have now for investment return. A borrower is utilising deferred income in exchange for paying the interest payments which go to pay those in the former category. When people paint these doom and gloom pictures of leverage today vs whatever point they are using in comparison, they seem to suspend reality in terms of how borrowing actually works - these loans are going to, at some point, return to P & I loans if they didn't start out that way, and equity is built. MOST loans (especially those significant enough to make the leverage graphs look bad by today's standards) are secured against actual assets, and we don't have zero recourse loans here so people aren't just gearing up to walk away. We've just discussed the significance of bankruptcy, it's not like people are doing it for fun.
Finally, the effect on inflation. This seems to grate people to no end. The fact that all of these currencies inflate is no surprise - it happens for so many reasons it's not funny... those collecting income from depositing funds ARE contributing to inflation, and those borrowing them are contributing a lot more. I pose this question - if we're so horribly overleveraged in Australia, and the inflationary effects have 3 side effects - rising interest rates to dampen the leveraging, increased returns to cash investors through higher interest, and increased value of certain fixed assets which are being invested in due to dollar depreciation - how is the sky falling again?
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