Bankruptcy Advice

The interesting question is...what is deemed to be recoverable. 5 years worth of Groceries? 5 years worth of transactions I have made to family member for medical aid? That kind of seemingly discretionary power worries me the most.

Last year I gave financial assistance to a friend in need. It wasn’t 10k but by the sounds of it, it doesn’t need to be. Scary stuff

 

Under market value transactions, especially related party transactions
Transfers to defeat creditors.

But on the practical side of things a trustee in bankruptcy won't want to spend good money chasing bad so if there is absolutely nothing after realising assets then they will have nothing to chase you with. They might ask creditors to chip in some money to chase things, bu they would also be concerned about getting back more than they put in.

 

Many ways to avert creditors..thats why legal advice is important.

 

Hi guys. I've been speaking to what seems to be a broker for trustees. Charges to act as a middle man. Does this type of thing seem right?

Told me they couldn't put me contact with trustees as there would be a conflict of interest. I believe the value proposition is that you can negotiate terms via a third party while the trustee remains within some type of legal boundary.

The above is just an assumption on my part but id really like to know the importance(if anything) of these guys.

Cheers

 

Just be careful before paying money for someone to “act” for you unless you are certain you will benefit, not just lose more money.
Marg

 

No, it doesn’t. Stick with a trustee, they are licensed and operate within the legal framework for a reason.

 

This page has some useful advice.
Four common debt traps: payday loans, consumer leases, blackmail securities and credit 'management'

Specifically ... to be very carefull with ... managers ....

Begin Inserted text -

4. The credit ‘manager’
If you’ve gotten into debt and ended up with a bad credit rating, credit repair services offer help with fixing your credit history or managing your debts.

These services may be legitimate businesses or non-profit community services. But there has been an alarming growth in unregulated debt negotiation and debt management services, charging exorbitant and hidden fees for minimal services. The fees and contract structures may be deliberately complex to obscure the costs.

Read more: Debt agreements and how to avoid unnecessary debt traps

According to the Senate inquiry report: “On the evidence provided to the committee in submissions and public hearings, these services rarely improve a consumer’s financial position. The charges for the debt management services increase their debt, and often consumers are referred to inappropriate remedies which may be expensive and cause lasting damage. The committee heard many case studies to this effect.”

ASIC recommends seeking help from free services first. You can find one through its MoneySmart website here.
End Inserted text

Also look at ASIC site. It mentions hardship provisions, but u must specifically ask for ... refer mention of 72.

 

Im surprised there is actually a market for middle men between bankruptees and trustees. Seems rather odd. Why would these people even exist? Seriously what could they possibly offer different to an accountant or lawyer

 

Thanks a bunch everyone for all the advice! Im searching for a Trustee to speak with but im unsure where to find one in Perth. Does anyone know if theres a registry of some sort?

 

The person i was speaking with called a Trustee during our meeting. He informed the trustee that i had little to no assets from which he could garnish a fee. The trustee then stated that he would be willing to obtain rent for approx 3months(Totalling 8K) ...This seemed like a fair trade...though still seemingly strange. (Rent to cover a fee?...ok)

I never got to speak to the Trustee during the call and heres where things got a little odd. Could be wrong though but, Fast foward to a week later and i ask the 'Middle man' ....

"I’d like to do a little more due diligence before pulling the pin. Could I arrange a meeting with the Trustee please. "

To which he replied

"Sorry I can’t introduce you because if I do and you want to go ahead I will have to find another Trustee as he will then have a conflict of interest and won’t be able to look after you."

Does this sound right? Are Trustees commodities to be traded. Or is there value here im not seeing?

 

crap.
who is this middleman and what is in it for them?

 

Dodgy and the rent scenario doesn’t make sense. Sounds like a pre-insolvency advisor that hasn’t done any work for you and just (informally) referring you to a mate so his mate trustee can charge you fees. You have no realisable assets so trying to get you to agree to pay the trustee something because you shouldn’t have to.

Also, pre insolvency advisor can’t formally refer you because his name will then appear as the referrer in the trustees Declaration of Independence as part of the first report to creditors. If it appears, it’s public info and likely appear on the regulator’s radar.

 

Bankruptcy Advisory Center - Bankruptcy Advisory Centre
Fee is $1650

 

From what i can tell... i declare bankruptcy and the Trustee collects the mortgage/rent payments that typically would have gone to the bank. For a period of 3 months which equates to approx 8k.

The assumption was that i continue to live in the house after declaring for a period of time by which im forcibly vacated. Which i assumed was 3 months. They figured if im going to be paying rent somewhere else at the same rate, might aswell use our former house as a tool to collect the fee.

 

Am I missing something here? If its apparently a "simple" matter with what I assume are a couple of negative equity properties, then I'd be very surprised if bankruptcy was the best option here.

Compared to say, negotiating with the banks or LMI insurers directly. You'd still want legal advice on executing the arrangement, but I haven't heard anything to suggest that's been something thats been explored yet.

 

Still doesn’t make sense. Seems like you don’t understand either. Ultimately, a trustee gets a nice fee. What is the benefit to you?

 

I dont which is why im here asking questions. Most people who havent gone through bankruptcy more than likely dont know either.

 

Thankfully its been mentioned a couple times. Ive since taken this advice and sort legal advice. What remains is an interaction i had seeking the advice of bankruptcy professionals. However d_walsh has made it clear this person is of little to no value.

 

I am providing not providing legal advice. It is my opinion based on the limited facts you’ve given.

If someone is asking you to pay them, you should understand what you’re getting. That is not unique to bankruptcy.

 

Just so we are clear i did not say you gave advice. I was referring to others posts throughout this thread that have stated this.

Indeed. This type of information comes only if you ask/seek/enquire about it.