MARCH NEWSLETTER

MORTGAGE INSURANCE.
In the future lenders will be more savvy about mortgage insurance.
Bankruptcy regulators and the Insolvency and Trustee Services Australian(ITSA) are sensing a change.
ITSA is now trying to identify how it can report on the number of people who elect bankruptcy because of natural disasters.
Bankruptcy applicants face a 20 page application to explain how it all went wrong.-
-Please explain your
-unemployment.
-loss of income.
-extravagant living.
-excessive use of credit cards.
-high interest rates.
-gambling debt---------Just to name a few.

Queensland has a higher rate of bankrupts than must other states in Australia, prior to the natural disasters in 2010-2011.
December Queensland had business related bankruptcies up by 479 cases.
NSW up 394, Victoria up 185, WA 100..
Now business related bankruptcies are
Queensland 1196, NSW 1602, Victoria 905, WA 286--

Queensland contributes the high bankrupts with cost of living increases in real estate, electricity, water and vehicle costs.
Other states have similar reasons.

New bankruptcy laws in December 2010 may help stave off personal bankruptcy but don't go far enough.

IN 2007
Eastern Access Community Health outlined how easy it was for debtors to be forced into bankruptcy, this prompted the government into action the report found in 2005, 22953 debtors became bankrupts.
In 2008
20% of bankruptcies related to debts between $2000 & $10,000

Advise -talk to your financial counsellor sooner rather than later.
Disaster can happen in an instant.