For example, if you owe $500k, but you have only 70k net assets, offer them say 200k contributed by your wife to stop bankruptcy and 'do a deal'.
Okay debt is $320k... do you think the ATO would do a deal for $70k?
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For example, if you owe $500k, but you have only 70k net assets, offer them say 200k contributed by your wife to stop bankruptcy and 'do a deal'.
If the wife were to purchase the house at market value it would be, probably, ok. The family would get to keep the price. The funds the wife paid to the husband would go to discharging the husband's mortgage to the bank and the rest would be available to creditors.
If the loan is to be in her name, the title has to be in her name too. It's standard bank protocol because it's part of their responsible lending i.e. the person borrowing the money has to have an interest (i.e. ownership) of the property.
That all sounds right to me, after all if my wife were paying proper market rates for the house, then I'd have $70k (minus fees) to pay creditors.
The issue with that is, my wife doesn't work, and wouldn't qualify for $550,000 in loans, especially not at the LVR it sits at at the moment. The only viable way I see for us to keep them is to keep the title and loan in my name.. Just have to find an agreeable trustee that sees it that way and not the one I have currently been speaking to.
haha the ATO - always the last one to get paid! They might do a deal - it's in taxpayer's interests that they do. I guess you just gotta play poker with them and say 'this is all I got, if u don't take it you get nothing anyway'.
You see smileyface - if you really want to keep the house, and you are certain that your wife/family/friends have enough money to bail you out, then you can do a Part X arrangement. This means that you avoid bankruptcy as third parties will contribute and pay off some of the debt for you, and the creditors promise to leave you alone. For example, if you owe $500k, but you have only 70k net assets, offer them say 200k contributed by your wife to stop bankruptcy and 'do a deal'.
That way everybody wins - creditors get 200k (rather than only 70k), you keep the house and you avoid bankruptcy (although Part Xs are still on your credit history)
The reason why it can't be your wife registering an interest is because it becomes a related party transaction and it looks very dodgy....it's better if it's a bit more removed from you.
This may be a way out of the mess. Part IX Debt Agreement
[ATO] might do a deal - it's in taxpayer's interests that they do.
The ATO doesn't usually turn up at creditor meetings - they have too many to attend to them all.
Communicate with your trustee. He'll know what to do
what is the nature of the ATO debt? you owe it personally or is thru an entity? is it PAYG or GST or...?
The way I see it, the bankruptcy trustee shouldn't be interested in the houses at all, only the equity, so if someone comes along and pays him $70k instead, then why should he care what happens to the house/title/loan?
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Trying to find a good one that I don't have to teach along the way
So you rorted on your taxes, and now you have to pay up?? Is that correct?It's personal income tax. I'm personally insolvent, not a company.