Bankruptcy in Bundaberg - Who do I speak to?

Should I speak to my accountant about Bankruptcy?

The answer seems clear doesn't it: if anybody knows your financial situation well in Bundaberg, It's going to be your accountant. However, the short answer is a resounding No! It's not that your accountant will not have your best interests in mind when it comes to Bankruptcy, it's that his skills lie in helping you save you money at tax time, minimizing your tax liability and lodging your BAS.

Most accounting degrees will put in hardly any to no time on insolvency, it's generally performed as a post graduate speciality course for those who intend to work in the field. Unless your accountant is an insolvency specialist, he would not know that a lot about the effects of Bankruptcy, I can assure you insolvency specialists know much about tax returns or BAS in. If you do happen to find an insolvency accounting firm in Bundaberg, they often tend to be large firms with very nice offices who charge accordingly.

Should I speak to my Solicitor about Bankruptcy?

No! You can talk with your solicitor in Bundaberg but more than likely it won't do you much good. Solicitors are definitely good at carrying out things lawyers do, like helping you do your Will and buying your house and keeping you out of court if you're lucky. When it concerns Bankruptcy, the specialists in Bundaberg tend to have either a legal or accounting qualifications, and the reason for that is simply that you can't start in the post graduate study to become a qualified insolvency practitioner unless you have a law or accounting degree.

Just as there are a couple of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you choose one you will pay a hefty price for their expertise.

Should I talk to a financial counsellor about Bankruptcy?

Yes! There are a lot of financial counselling services to guide you with this, they have no hidden agendas and they're a terrific option for letting you analyze your situation when it comes to Bankruptcy. If you find yourself stressing constantly, not sleeping, not eating or over-eating and thinking of money pressures at all times, then get some help.

There are also charitable organizations around Bundaberg like Lifeline that offer a remarkable service. They will be a sounding board if you just need a person to discuss with you what your alternatives are. Don't let your financial problem destroy your life - ultimately it's just money.

If you need to learn more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to speak to Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website: www.bankruptcyexpertsBundaberg.com.au.

Bankruptcy in Bundaberg - Will I lose my business if I go bankrupt?

When people in Bundaberg come to me planning to talk about Bankruptcy, they are typically full of questions. The internet is full of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make it clearer. One of the most typical priorities is 'Will I lose my business if I declare bankruptcy?' The concise answer is no. If you are a manager of a business any shape or size you can keep your business if you want to. In Bundaberg, businesses that end up being insolvent have a few options for example, liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complicated area so get some qualified advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go hand in hand when a business owner goes bankrupt. There are some important implications for directors of companies when it pertains to Bankruptcy in Bundaberg: A bankrupt can not be a director of a company, so if you have a pty ltd company you will need to resign as a director once you're bankrupt.

A restriction that applies when you are bankrupt as a business owner is that you can be in your very own business as a sole trader only. Certainly there are things you must disclose as an aspect of that but effectively you can still run your company. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. For instance, if you run a building company, your license will be suspended once you're bankrupt and therefore you can not trade without that license, so make sure you are asking the ideal questions when it comes to licenses and Bankruptcy in Bundaberg.

However if your business is not impacted directly by such issues, then you'll need to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not acquire heaps of debt in your business, then go bankrupt and then open the doors the next day like practically nothing had happened. There are laws in place to stop what is called phoenix companies popping up out of the ashes of an old business.

Having said that, it's just a point of talking to the best people about Bankruptcy. In this circumstance you may believe you need a liquidator for your business, and you could be right, but keep that in mind every liquidator is unique and have their own motives. Liquidators make money from your liquidation - heaps of money - so exactly what advice do you think you will get?

When it comes to Bankruptcy, I believe that giving generic advice in this area is potentially perilous as it can have very significant implications for directors and business owners. This is due to the fact that it is just one of those cases where what the right advice for one business owner is the wrong advice for the other. There are some principles however, that you may benefit from. There is no limitation to the size of the business you run when you are bankrupt. You can employ staff. You can continue to deal with your vendors under certain conditions, the main one being you will need to meet the payment terms agreed upon.

So when it concerns Bankruptcy, don't get overly worried about what you can and can't do as a business owner, just get the best advice ... If you need to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website: .bankruptcyexpertsBundaberg.com.au.

Bankruptcy in Bundaberg - Changes that can help Small Business and Entrepreneurs

Do you understand how much Bankruptcy Bundaberg is changing? The Australian Government at the end of 2015 set forth some radical changes to the Bankruptcy Laws in Australia. Among the most significant of these is the length of time that a person is bankrupt for. Right now, there is a minimum amount of time that you must continue to be bankrupt, however, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be somewhat important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 recommended that "the proposed changes to ease the burden of bankruptcy laws didn't go far enough and the government should adopt US-style laws to protect the family home".

These improvements to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that guarding family assets was essential because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws put off investors from supporting start-ups, and as a result mentoring had been "driven out of the system".

"They naturally find it very intimidating themselves personally and with their assets at risk in a risky early-stage deal, but with their own money in the deal and a lightened-up provision I think we 'd probably see more willingness. It could be more important than the money."

Fraudulent Behavior

The debate around this Bankruptcy issue in Bundaberg that some come up with is that this revision will only strengthen fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to exploitation of the bankruptcy system. We have looked at the minimum, but on the other side of the matter, The government is not suggesting to change the maximum term of 8 years if it deems a bankrupt has acted in an unethical or fraudulent way, and there are no recommendations to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Bundaberg, I have a fair share of experience when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Bundaberg I have never struck someone abusing the system or acting in a careless way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur go through the very tough task of bankruptcy, not once have I really felt they are happy about it. The ordinary small business owner or entrepreneur in Bundaberg does not start out taking enormous financial risks with the intention to fail. The media prefers citing the apparent wrongdoing that will be rampant if these changes occur, what a joke!

A Win for Small Business

These suggested changes will be good for often the best and brightest in Bundaberg not get tossed out of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, employers keeping this country going.

There certainly is a fine line with what exactly the government is trying to do here, since they are attempting to balance helping individuals who have made decisions out of their control, and discouraging people from making oversights that land them in trouble and as a result an issue of Bankruptcy. However you also don't want to wipe out the experience and knowledge that business owners have. You undoubtedly don't want to smash people simply because they have had a genuine failure in a large or small start-up enterprise that has not succeeded.

At the big end of town large established companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of bankruptcy were cut down because directors are worried they'll be personally liable in an insolvency arrangement if the new venture doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will enable Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I cannot imagine, that these revisions will be detrimental to Australia's economy, indeed these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health field because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Bundaberg not a day goes by where I don't find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you want some help with your debts in Bundaberg or are just considering Bankruptcy, feel free to call us here at Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website:bankruptcyexpertsbundaberg.com.au

Bankruptcy in Bundaberg - does it matter if it is voluntary?

When it comes to Bankruptcy Bundaberg, generally people aren't aware that there may be both voluntary, and involuntary bankruptcy - both have different methods and rules.

Involuntary bankruptcy arises when someone you owe money to applies to the court to declare you bankrupt. Commonly when you get one of those notices, you have normally 21 days to pay all the debt. If you don't, then the creditor returns to the court and requests the court to provide a sequestration order that declares you bankrupt. A trustee is appointed, and then you have 14 days to get the documentation in and afterwards you are bankrupt.

You can challenge a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to avoid it going to the next level. Other than the way you became bankrupt there is in reality no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're overseen to in the exact same way.

However, when it concerns Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this method is incredible. If you think you are prone to be made bankrupt by someone, get some suggestions and act on that advice. Generally I've found it's always more effective to know what you can and can't do before you have a person bankrupt you. Once you are bankrupt, it's typically too late.

Voluntary Bankruptcy

However, when it comes to Bankruptcy, sometimes there are moments that it is the most effective option. So you may need to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for everyone of course, but usually I find that one way you could work it out is to figure out how long it will take you to pay each of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may help you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who spoke to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the level she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can really help you think this through. If you move house and overlook to pay your $30 phone bill for 6 months more, it's very likely the phone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file seriously damaged for that period of time - and all of this will affect how you need to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unjust. The punishment doesn't seem to amount to the crime in my book. So if you actually have defaults on your credit report for 5 years, bear in mind that bankruptcy is on your credit file for a total 7 years then its rubbed out completely.

So if your credit rating is a big aspect in trying to decide whether to participate in a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest contrast is that with a DA or PIA you pay back the money and nevertheless have it on your file for 7 years.

Bankruptcy

I have talked about the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the part more people are afraid of when they come to me to talk about their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. As compared to countries like the United States, our bankruptcy laws are very generous.

I don't pretend to know why that is but a few hundred years ago debtors went to prison. Nowadays I suppose the government feels the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which in turn costs the taxpayer anyway.

Bankruptcy wipes all your debts including ATO debts except for a few things:

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not actually insured.

There is much more that can be said about this and Bankruptcy in general but the objective of this blog was to help you decide between a few possible options. When getting some advice, remember that there are always alternatives when it involves Bankruptcy in Bundaberg, so do some homework, and Good luck!

If you want to learn more about just what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to check with Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website: bankruptcyexpertsBundaberg.com.au.

Bankruptcy in Bundaberg - Will my income be altered if I go bankrupt?

Bankruptcy Bundaberg is a intricate process, and you ought to make sure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you need to know about going bankrupt is there is no regulation on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy.

The very first thing you need to understand about this area of Bankruptcy is just how much you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand amount of money you earn annually. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can make an application for a hardship variation that increases the threshold amount, if you have expenses in Bundaberg like medical, child care, significant travel to and from your job, or a situation where your partner used to work but is not able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always taken into consideration in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you give $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are a lot more issues involving income and what is or isn't regarded as income - if you're not exactly sure, it's best to get skilled advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund may be taken by the ATO while you are bankrupt to add toward your tax bill. If you don't have a tax bill then you will keep your tax refund as long as that doesn't take you over your threshold income restrictions.

If you feel like when it comes to Bankruptcy, your case is more intricate, then simply get expert advice in Bundaberg. I may seem like a broken record, but bear in mind that it's always a good idea to overcome these options before declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Bundaberg on 1300 795 575, or explore our website: www.bankruptcyexpertsBundaberg.com.au.

Bankruptcy in Bundaberg - Are you going to get bitten?

When people in Bundaberg ask me about Bankruptcy, I let them know the simple Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to view one last sunset before he dies. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They travelled together only for the snake to ultimately attack the boy despite his assurance not to do so. The snake's response was 'You knew what I was when you picked me up.

Receiving the right financial advice in Bundaberg when it concerns Bankruptcy is a whole lot like that little boy's encounter, fraught with risk and danger, and typically skewed for the benefit of the individual offering the advice. In most cases you'll get bitten unless you know what you've picked up long before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been essential to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were pretty high and investing your money was rather profitable. I spent some time researching numerous investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had nice suits and plush offices, they all appeared to exude confidence and have all the answers. What hit me was that they all had a really different idea of what I should do. This confused me so much that it put me off the entire idea of picking any of them.

I'm sure currently you have read enough on the internet to be totally baffled about Bankruptcy and exactly what to do. It would most likely be easier for me to help you comprehend the nature of the financial snakes you might be grasping while you are trying to get to the bottom of your financial troubles in Bundaberg. Essentially, you need to try and figure out what your overarching alternatives are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Bundaberg for your needs. Basically, you have 3 options for who to turn to.

The first option is a Solicitor - This may seem the go-to choice when you seem to be in trouble. But there is only so much support they can give on this matter. There are certainly specialist legal advisors in bankruptcy, but their experience comes along with a hefty price.

Another choice you may think of is your accountant - they are incredibly helpful and vital to the task of operating your business, but for the most part, when you are considering Bankruptcy, your accountant won't be much help to you any more.

Your best choice? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and virtually all you should know when it comes to Bankruptcy.

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website:bankruptcyexpertsbundaberg.com.au,

Bankruptcy in Bundaberg - Choices, Choice, Choices

When it comes to Bankruptcy Bundaberg, there are a lot of choices that we get given depending on who we are, who we talk to, and exactly what has gone wrong. Among the most common trouble I see with Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Bundaberg, most of the information and facts you receive on this subject will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can promise you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for helping you wrap all of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but these people aren't doing it free of charge. Please don't misunderstand me: if you consider your financial issues in Bundaberg can possibly be solved by paying less interest, then go on and investigate the options. Even a little amount of interest saved over years rapidly adds up.

Typically I find if you read this blog you've undoubtedly tried to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is no good, and your credit file already has defaults on it so nobody will give you a loan, consolidated or otherwise,.

• By the time you work all of it out, you're so far down a hole that saving a tiny bit of interest simply won't make a lot of difference,.

• You've likely gotten to the stage where you've had more than enough, you're mentally worn down, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes down to Bankruptcy in Bundaberg, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Overall flexibility is the main point Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - may I add - regulated trustee featuring the government trustee ITSA, and not a private company that advertises on TV. Essentially this process is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they mediate a deal on your behalf. You can offer a lump sum settlement figure or enter into a payment plan, or perhaps you can offer them assets rather than cash. This may sound acceptable when it comes to the problems with Bankruptcy - that is up until you realize that one of the challenges with PIA's is that 75 % of the people you owe money to have to come to an understanding the deal. If they don't, your plan is rejected or has to be renegotiated.

Generally the people you owe money prefer all their money back in addition to interest. Sometimes they'll settle for under the amount you owe them - it's typically a percentage of the debt - but allow me to stress this part: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will really settle for.

In most cases you'll have to pay back 100 % of the debt owed. This is not just because your creditors are greedy or have a mean streak, it's because the administrators take 20 % of whatever is agreed upon with the people you owe money to. That applies whether you use a private company for this process or ITSA, the government body setup to administer to these PIAs.

When it comes to Bankruptcy and insolvency I've heard of creditors going for less 80 % on rare occasions, but that usually only occurs with a public company going into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of brilliant lawyers and some very clever frameworks in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Bundaberg aren't going to get that lucky!

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Bundaberg on 1300 795 575, or visit our website:bankruptcyexpertsBundaberg.com.au.