Do you feel buried under a mountain of debts you simply cannot pay? Are you up all night worrying? Are you hesitant to answer the telephone? You are experiencing personal insolvency Australia.
For every problem, there is a solution. Fortunately, this rule applies to debts too!
Personal Insolvency is one option that many people turn to when it comes to dealing with overwhelming debts. Whether they are Credit Cards, overdue bills, hefty loan repayments or whatever. If you find yourself in a situation where you are pressed for finances that you no longer have, there is a way to get yourself out of the situation.
Before you declare your personal insolvency, or Bankruptcy as it is more commonly known, here are some things you absolutely need to know.
What is Personal Insolvency?
Personal Insolvency is a legal term used to describes one’s financial status. Specifically, it pertains to a situation where the debtor (You) can no longer pay debts when they fall due. Though at first, you might think of insolvency as intimidating and quite dreadful, it is actually a position that many of us have experienced at some point in our lives.
In this situation, you either go for a personal insolvency Australia solution with your creditors (those you owe money to) or you just do nothing! The latter would only lead you to a situation worse than you are in now. So taking the advice of a proper financial counsellor to guide you through the process would be a wise choice.
It is important that you arm yourself with knowledge as it will help you understand what this solution means. We can help you there. The next thing you need to know is what has caused your personal insolvency so you can avoid it happening again. Then you take advice on the steps you need to take to deal with your debts. In most cases, personal insolvency is nothing but a temporary situation caused by economic factors and such but left unattended, it could turn into a very damaging financial burden.
Causes of Personal Insolvency
- Excessive use of credit
- Unemployment or loss of income
- Domestic discord or relationship breakdown
- Ill health
- Gambling or speculation
- Adverse legal action
- Liabilities due to guarantees
- Other non-business reasons
- Economic conditions
- Personal reasons (e.g. ill health, etc.)
- Excessive drawings
- Lack of business acumen
- Excessive interest
- Lack of capital
- Failure to keep proper books
- Inability to collect debts
- Gambling of speculation
- Seasonal conditions
- Other business reasons
Consequences of Personal Insolvency
The other important things you should understand when you are thinking about declaring personally insolvent (Or bankrupt) are the consequences that come with it. It is important that you speak with a professional to determine what impact Bankruptcy or personal insolvency Australia may have upon you.
Amongst other things, declaring yourself personally Bankrupt may affect your ability to obtain credit, may affect your employment and will appear on the NPII (National Personal Insolvency Index). Be sure you understand what affect this may have on you.
Seek the Right Financial Advice
Personal insolvency Australia is a serious situation that requires expert counsel. Here at My Bankruptcy, we understand how important it is to deal with financial troubles before they become chronic.
When you find yourself in a difficult position and you are unable to pay debts, call on us to assist you. We will assist you with the preparation of the required documents suitable for your situation. If this means declaring Bankrupt then we will assist you through the entire process.
Operating in Queensland, New South Wales, Australian Capital Territory, Victoria, South Australia, Western Australia, and the Northern Territory, you can call on our offices to learn more about what we can offer you. Contact us on 1300 255 059 or send an email to steve@mybankruptcy.net.au. You can live a happier, worry-free life! Work with us now!