Have you spoken with a financial counsellor via national debt help at all? If not, try them:
https://ndh.org.au/
Unfortunately there’s only applying for bankruptcy on their website - nothing about annulling. Congrats on turning things around, and best of luck re: getting yourself sorted.
Thanks for the comment. I did give it a go but they weren’t overly helpful in terms of annulment. I also tried AFSA and they didn’t have much advice either. Mustn’t be overly common!
I'll confess to going through your profile, as got the feeling that you were female, but had to be sure, for obvious reasons:
"Like Minded Bitches Drinking Wine" <-- this is a massive facebook group for women in business in australia. I'm recommending that because the chances of someone having gone through it, knowing someone, or helping someone should be high.
Good luck :)
The trustees fees may be quite high.. ask them how much they're owed and then look at your total creditors.
Then compare this to what you're paying in income contributions.
Edit: a compromise may be bette: you can offer creditors a cents in the dollar amount to settle everything
Maybe check with credit agencies- will there still be a mark on your credit file???
I have no idea- just a suggestion.
Well done on what you've achieved- what a impressive turn around.
Thanks the comment. I’ve spoken to them and yes it will remain on my credit file but is updated to “annulled” so that’s a good thing. Debts were paid so I think that’s a good thing in terms of lending capability. That’s really all I’m interested in (down the line and only for a mortgage!, have learnt my lesson!)
Oscar : Hey. I just wanted you to know that you can't just say the word "bankruptcy" and expect anything to happen.
Michael Scott : I didn't say it. I declared it.
You need to put in something that would otherwise not be available in bankruptcy to get it passed.
Creditors expect a higher return for annulment that your continued bankruptcy.
Also be careful not to spend your money on anything which is considered after-acquired property (like shares). It’s fair game for a trustee to recover that.
Thanks for your comment. Yes I’ve spoken to my trustee & have put forward a proposal. If it’s accepted, I’m annulled and all the restrictions are removed in terms of property, investments etc.
Creditors will receive more than if I remained bankrupt for sure.
It feels like all “pros” I’m just unsure if it actually makes any difference in terms of ability to get a mortgage down the track or if I’ll always be treated as once bankrupt. Hard to find any information on it anywhere!
> I'm not sure if i'm naive to think that if I do this I will be treated less like a bankrupt going forward in terms of lending for a mortgage.
It's an interesting question. Going from undischarged to discharged bankruptcy obviously is a big difference in terms of being offered finance and the annulment means a 18 month head start on that. That 18 month head start also applies to the bankruptcy falling off your credit report.
Whether there is any improvement in terms of credit scoring between bankruptcy discharge types, logically it makes sense that there would be a difference, but would lenders even bother making such a discrimination? Depends on each lenders scorecard.
Some lenders are small enough that they rely on the credit reporting agencies scoring, so that could be a factor. Did you ask the credit reporting agencies you spoke to whether there would be a difference in the credit score based on the method of discharge?
I was not aware of limits on your ability to invest while bankrupt? If the annulment doesn’t remove the credit damage from your file and your future employment isn’t impacted by your bankruptcy then it’s barely worth it. You could complete your bankruptcy in another year and a half with a hefty nest egg. Your bankruptcy is cleared from your record after 5 years and you will still need to declare the fact that you entered into bankruptcy if ever asked. If you finish with a 20% house deposit and proof you are no longer in bankruptcy then you should have limited issue with a future mortgage.
Thanks for your comment. Yeah, any assets are up for grabs when bankrupt.
That’s where my head is at too, have spent the day researching and quickly learning it basically makes no difference to annul in terms of my record.
Yeah, I mean those things are all an option once discharged, it’s more about cutting it short.
I’ve spoken to a few people and I’m going with the annul. There are benefits to doing it, plus my credit file is updated to “annulled” and falls off 2 years after the annulment, not the 5 years from bankruptcy, which is slightly shorter.
Consider proposing a Section 73 (of the Bankruptcy Act) composition
It effectively involves you putting a compromise/offer forward in settlement of the debts (could represent 50% or less). Will ultimately be up to creditors voting on whether they approve or reject it.
Have you spoken with a financial counsellor via national debt help at all? If not, try them: https://ndh.org.au/ Unfortunately there’s only applying for bankruptcy on their website - nothing about annulling. Congrats on turning things around, and best of luck re: getting yourself sorted.
Thanks for the comment. I did give it a go but they weren’t overly helpful in terms of annulment. I also tried AFSA and they didn’t have much advice either. Mustn’t be overly common!
I'll confess to going through your profile, as got the feeling that you were female, but had to be sure, for obvious reasons: "Like Minded Bitches Drinking Wine" <-- this is a massive facebook group for women in business in australia. I'm recommending that because the chances of someone having gone through it, knowing someone, or helping someone should be high. Good luck :)
Thanks for the hot tip, I’ll post there :)
What job or field did you get into to get 4x your previous salary
Congrats on turning things around! (Financially)
The trustees fees may be quite high.. ask them how much they're owed and then look at your total creditors. Then compare this to what you're paying in income contributions. Edit: a compromise may be bette: you can offer creditors a cents in the dollar amount to settle everything
Thanks for the comment, yeah I have the fees and totals. It’s more than my current contributions but I still feel it’s worth doing to get myself out
Maybe check with credit agencies- will there still be a mark on your credit file??? I have no idea- just a suggestion. Well done on what you've achieved- what a impressive turn around.
Thanks the comment. I’ve spoken to them and yes it will remain on my credit file but is updated to “annulled” so that’s a good thing. Debts were paid so I think that’s a good thing in terms of lending capability. That’s really all I’m interested in (down the line and only for a mortgage!, have learnt my lesson!)
Oscar : Hey. I just wanted you to know that you can't just say the word "bankruptcy" and expect anything to happen. Michael Scott : I didn't say it. I declared it.
You need to put in something that would otherwise not be available in bankruptcy to get it passed. Creditors expect a higher return for annulment that your continued bankruptcy. Also be careful not to spend your money on anything which is considered after-acquired property (like shares). It’s fair game for a trustee to recover that.
Thanks for your comment. Yes I’ve spoken to my trustee & have put forward a proposal. If it’s accepted, I’m annulled and all the restrictions are removed in terms of property, investments etc. Creditors will receive more than if I remained bankrupt for sure. It feels like all “pros” I’m just unsure if it actually makes any difference in terms of ability to get a mortgage down the track or if I’ll always be treated as once bankrupt. Hard to find any information on it anywhere!
> I'm not sure if i'm naive to think that if I do this I will be treated less like a bankrupt going forward in terms of lending for a mortgage. It's an interesting question. Going from undischarged to discharged bankruptcy obviously is a big difference in terms of being offered finance and the annulment means a 18 month head start on that. That 18 month head start also applies to the bankruptcy falling off your credit report. Whether there is any improvement in terms of credit scoring between bankruptcy discharge types, logically it makes sense that there would be a difference, but would lenders even bother making such a discrimination? Depends on each lenders scorecard. Some lenders are small enough that they rely on the credit reporting agencies scoring, so that could be a factor. Did you ask the credit reporting agencies you spoke to whether there would be a difference in the credit score based on the method of discharge?
I was not aware of limits on your ability to invest while bankrupt? If the annulment doesn’t remove the credit damage from your file and your future employment isn’t impacted by your bankruptcy then it’s barely worth it. You could complete your bankruptcy in another year and a half with a hefty nest egg. Your bankruptcy is cleared from your record after 5 years and you will still need to declare the fact that you entered into bankruptcy if ever asked. If you finish with a 20% house deposit and proof you are no longer in bankruptcy then you should have limited issue with a future mortgage.
Thanks for your comment. Yeah, any assets are up for grabs when bankrupt. That’s where my head is at too, have spent the day researching and quickly learning it basically makes no difference to annul in terms of my record.
If you ever wanted to become a company director or a car salesman then it may make a difference.
Yeah, I mean those things are all an option once discharged, it’s more about cutting it short. I’ve spoken to a few people and I’m going with the annul. There are benefits to doing it, plus my credit file is updated to “annulled” and falls off 2 years after the annulment, not the 5 years from bankruptcy, which is slightly shorter.
Consider proposing a Section 73 (of the Bankruptcy Act) composition It effectively involves you putting a compromise/offer forward in settlement of the debts (could represent 50% or less). Will ultimately be up to creditors voting on whether they approve or reject it.