Hello to everyone in the forum,
I am not sure if I have posted this in the right section but I am seeking advice regarding my desperate financial situation.
Could someone share some advice as to what to do in order to avoid bankruptcy?
I know that there are some financial advisers out there but I am looking for workable solutions with my creditors before my situation becomes hopeless.
My biggest challenge is my current state of mind and it would be greatly appreciated if anybody could share similar experiences or offer advice.
Thank you.You havent given much info. What sort of dept if it is personal , consolidate the loans into your home loan, if you have one? Sell everthing that is taking money from your pocket and start again , use equity to set you free if you have any?
Need for info
Monopoly, my favourite game
Thanks for your quick response Rick.
What I am saying is that if I was to sell everything that I own(including my own home)I would be approximately 200,000 dollars in debt through misuse of credit cards. I have used all the equity that I had in my own home.
I have 100,000 tied up in a property that is neutrally geared so if I sell it would make no difference to my cash flow. I would get rid of a liability but also an income.
I am at the stage where my debts has far exceeded my income and assets.There is almost always a way out if you can sell most things that are taking money away from you .You must first learn to live on the money you earn not the money you think you earn. Look im propabaly not much help , but go read a book called the richest man in babylon , if you can live by the basic rules set out in this book you will never be a slave to money.
I would sell everthing if I was in a bad situation and start again from basics.
Read this book you wont regret it.Monopoly, my favourite game
Thanks again Rick.
I do appreciate what you are saying its just that I feel as though ive reached rock bottom cos im lacking confidence.
I feel as though things will never get better simply because of how I feel and Im finding it a real challenge to think positive when all I think about is the mess Ive created.Just sent you a private message have a read
Monopoly, my favourite game
Bankruptcy is a long and complex process. It would probably take up to one year for someone to force you into bankruptcy. If they do, then it is basically over for them, so it is in their interest to keep you out of bankruptcy. They may accept to settle for a lower sum, or may accept payments in installments.
Go to your local library, and have a look in the legal section, there will probably be books on this topic there.
Also have a read up at http://www.itsa.gov.au so you know the process of bankruptcy.
I was in hte process of chasing a debt with the intention of bankrupting the person, but in the end I accepted an out of court settlement for a lesser sum – just to speed things up to reduce costs. It is better to get sometihng than nothing.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
superchef
first off neither you nor your creditors want you to go bankrupt the only people who make the money is the lawyers.
so my advice is first find a friend who is in business they will have a accountant who will most likely do a bit of bono work for you and give you good advice.
Then sit down and write the list of losses and to who.
after this work with your creditor (not against them as the will usually have bigger pocket then you)go to them with both the accountants advice and your list.
confidence is the golden rule, you go into battle with a sword not a feather.remember that you owe them the money and they would like that money back so they will happy to work thru this as much as you are.
alot of people think that bankrupt is the best way out but in reality there are alot better options and you need to work them out.these forums are a good start.
There are alot of business people who for no fault of there own were in the same situation as you and for alot more money then you are talking about.
Who worked out with creditors and have made very successfull business without any blot on there credit reference.
This is not a battle lost, look at it as just regrouping and next time work to a plan.
Lawrencelawrence
I noticed you had a neutrally geared property. I must assume that you have some equity in this property for it to be neutral. Even though you would lose an income that matches a liability, you should receive a good chunk from the equity to pay down other debt. The net result would be a lower ongoing liability.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteSupachef
When you hit rock bottom there is a positive in there, you can only go up from where you are.
I agree with others an accountant is good or I would personally go and see a credit counsellor. They will look at your situation (not pre judge you)and will even negotiate terms with those who you owe money to. They will sit you down and go through budgeting and show you how to manage the debt your in.
If you got $200,000 debt from ccards you must be able to flog something off either garage sale, ebay etc etc.
Good luck, chin up
Jenny1
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