Bankruptcy in Kalgoorlie - Choices, Choice, Choices

When it comes to Bankruptcy Kalgoorlie, there are a great deal of choices that we get given depending upon who we are, who we talk with, and just what has happened. Among the most common confusion 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 Kalgoorlie, a lot of the information and facts you receive on this subject will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, I can assure you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very simple way: charging you a fee for helping you wrap most of your credit card and personal loans into one neat and tidy bundle.

I hate to tell you this but these guys aren't doing it free of charge. Please do not misunderstand me: if you feel your financial issues in Kalgoorlie may possibly be solved by paying less interest, then go ahead and look into the options. Even a little amount of interest saved over years quickly adds up.

More often than not I find if you are reading this blog you've undoubtedly attempted to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is no good, and your credit file already has defaults on it so nobody will give 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 tiny bit of interest just won't make a great deal of difference,.

• You've likely gotten to the stage where you've had enough, you're mentally worn down, you can't go on 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 Kalgoorlie, 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 featuring the government trustee ITSA, and not a private organization that advertises on TV. Essentially this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and they mediate a deal in your place. You can offer a lump sum settlement figure or enter into a payment plan, or maybe you can offer them assets as an alternative to cash. This might sound fine when it comes to the troubles with Bankruptcy - that is up until you discover that one of the obstacles with PIA's is that 75 % of the people you owe money to will need to agree on the deal. If they do not, your plan is denied or has to be renegotiated.

Generally the people you owe money really want all their money back plus interest. Sometimes they'll go for under the amount you owe them - it's generally 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 really settle for.

Most of the time 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 Bankruptcy and insolvency I've come across 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 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 Kalgoorlie 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 Experts Kalgoorlie on 1300 795 575, or visit our website: bankruptcyexpertsKalgoorlie.com.au.