Bankruptcy in Maitland - Who exactly do I speak to?

Should I talk to my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody knows your financial situation well in Maitland, It's going to be your accountant. However, the short answer is a definite No! It's not that your accountant may not have your best interests at heart when it comes to Bankruptcy, it's that his proficiency lie in helping you save you money at tax time, minimising your tax liability and lodging your BAS.

Most accounting degrees will spend hardly any to no time on bankruptcy, it's generally performed as a post graduate specialty program for those who intend to work in the field. Unless your accountant is an insolvency expert, he will 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 manage to find an insolvency accounting firm in Maitland, they often tend to be large firms with very nice offices who charge accordingly.

Should I consult my Solicitor about Bankruptcy?

No! You can speak to your solicitor in Maitland but more than likely it won't do you much good. Solicitors are definitely good at doing things lawyers do, like helping you do your Will and buying your house and trying to keep you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Maitland normally 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 like there are a handful of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay a sizeable price for their expertise.

Should I speak with a financial counsellor about Bankruptcy?

Yes! There are lots of financial counselling services that can help you with this, they have no hidden agendas and they're a superb option for helping you think through your situation when it comes to Bankruptcy. If you find yourself stressing constantly, not sleeping, not eating or over-eating and thinking about money pressures regularly, then get some help.

There are also charities around Maitland like Lifeline that offer a fantastic service. They will be a sounding board if you just need someone to discuss with you what your possibilities are. Don't let your financial trouble destroy your life - ultimately it's just money.

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

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

When people in Mildura come to me planning to talk about Bankruptcy, they are usually loaded with 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 things more clear. One of the most universal matters is 'Will I lose my business if I declare bankruptcy?' The short answer is no. If you are an owner of a company any shape or size you can maintain your business if you want to. In Mildura, businesses that eventually become insolvent have a few options such as liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complicated area so get some skilled advice on this if you have a business. Generally speaking, the debts in a business and personal debts go together when a business owner goes bankrupt. There are several necessary implications for directors of companies when it comes to Bankruptcy in Mildura: A bankrupt can not be a director of a company, so if you have a pty ltd company you will likely need to retire as a director once you're bankrupt.

A restriction that applies when you are actually bankrupt as a business owner is that you may be in your own business as a sole trader only. Generally there are things you must make known as an aspect of that but ultimately you can still run your company. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. Such as, if you run a building company, your license will be suspenaded once you're bankrupt and consequently you can no longer trade without that license, so make sure you are asking the right questions when it comes to licenses and Bankruptcy in Mildura.

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

Having said that, it's just an issue of talking with the correct people about Bankruptcy. In this situation you may believe you need a liquidator for your business, and you could be right, but keep in mind that every liquidator is distinct and have their own motives. Liquidators earn money from your liquidation - heaps of money - so what advice do you think you will get?

When it comes to Bankruptcy, I believe that giving generic advice in this area is likely unsafe as it can have very substantial 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 incorrect advice for the other. There are some fundamentals however, that you may benefit from. There is no reduce to the size of the business you run while you are bankrupt. You can employ staff. You can constantly deal with your companies under certain conditions, the main one being you will need to meet the payment terms agreed upon.

So when it comes to Bankruptcy, don't get too upset about what you can and can't do as a business owner, just get the right advice ... If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to reach out to Bankruptcy Experts Mildura on 1300 795 575, or visit our website: .bankruptcyexpertsMildura.com.au.

Bankruptcy in Mildura - Changes to help Small Business and Entrepreneurs

Do you know just how much Bankruptcy Mildura is changing? The Australian Government at the end of 2015 moved for some progressive changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. Now, there is a minimum amount of time that you must stay bankrupt, having said that, this 3 year period may in fact be reduced to just 12 months. So if you are asking about Bankruptcy, this news may be somewhat important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 proposed 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 changes to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that defending family assets was very important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws discouraged investors from supporting start-ups, and therefore 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 argument surrounding this Bankruptcy issue in Mildura that some come up with is that this variation will only invite fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to maltreatment of the bankruptcy system. We have taken a look at the minimum, but on the other side of the issue, The government is not proposing 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 propositions to change the repercussions of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Mildura, I have a fair share of experience when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Mildura I have never uncovered someone abusing the system or acting in a reckless way as to exploit the bankruptcy 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 thought they are happy about it. The average small business owner or entrepreneur in Mildura does not start out taking enormous financial risks with the intention to fail. The media loves citing the apparent misuse that will be rampant if these changes occur, what a joke!

A Win for Small Business

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

Truth be told there is a fine line with what the government is trying to do here, because they are trying to balance helping people who have made decisions out of their control, and discouraging people from making errors that land them in trouble and consequently an issue of Bankruptcy. However you likewise don't want to kill the experience and knowledge that business owners have. You undoubtedly don't want to shatter people simply because they have had a sincere failure in a large or small start-up enterprise that has not gone well.

At the big end of town large well 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 insolvency were cut down because directors are concerned they'll be personally responsible in an insolvency arrangement if the new venture doesn't work out.

The government's proposed 'safe haven' modifications for directors of companies will allow Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I can not imagine, that these adjustments will be harmful to Australia's economy, in fact 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 substantial. When it comes to Bankruptcy in Mildura not a day passes where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you really need some help with your debts in Mildura or are just thinking about Bankruptcy, feel free to contact us here at Bankruptcy Experts Mildura on 1300 795 575, or visit our website:bankruptcyexpertsmildura.com.au

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

When it comes to Bankruptcy Mildura, often people aren't aware that there are both voluntary, and involuntary bankruptcy - both of these have different approaches and policies.

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

You can object to a bankruptcy notice by going to court following the 21 days have expired and put your case forward, to prevent it going to the next level. Other than the way you became bankrupt there is in fact no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're managed to in the same way.

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this process is incredible. If you think you are probable to be made bankrupt by someone, get some tips and act on that advice. Generally I've found it's always more ideal to know what you can and can't do before you have someone bankrupt you. Once you are bankrupt, it's usually too late.

Voluntary Bankruptcy

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

This question is not the very same for each person of course, but commonly I find that one way you could work it out is to figure out just 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 assist 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 service will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file very seriously damaged for that period of time - and all of this will impact how you have to approach Bankruptcy.

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

So if your credit rating is a big element in trying to decide whether to take part 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 mentioned the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the part most people are afraid of when they come to me to go over their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this specific country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all finished with no strings attached. Compared to countries like the United States, our bankruptcy laws are extremely reasonable.

I don't pretend to know why that is but a few hundred years ago debtors went to prison. These days I suppose the government believes 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 every one of 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 insured.

There is much more that can be said about doing 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, don't forget that there are always alternatives when it involves Bankruptcy in Mildura, so do some legwork, and Good luck!

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

Bankruptcy in Mildura - Will my income be affected if I go bankrupt?

Bankruptcy Mildura is a complicated process, and you ought to be sure you get the right advice. And when it comes to your income being affected, the answer to the question is maybe. The first thing you have to know about going bankrupt is there is no regulation on how much you can earn. However, I will mention that your income is a significant consideration when working through when it comes to Bankruptcy.

The very first thing you need to understand about this area of Bankruptcy is the amount 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 quantity you earn per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can request a hardship variation that increases the threshold amount, if you have costs in Mildura like medical, child care, major travel to and from your job, or a situation where your partner used to work but is not able to contribute to the family income.

Some of the useful parts of Bankruptcy is that your employer will not be notified 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 considered, for example if you pay $5,000 child support each year and you have no dependents living with you then your changed net income limit will be $55,332.10.

There are a lot more issues surrounding income and what is or isn't considered income - if you're uncertain, it's ideal to get professional advice. The reason you will need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically sensible option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can 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 provided that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your issue is more intricate, then simply get qualified advice in Mildura. I may sound like a broken record, but keep in mind that it's always a smart idea to overcome these options prior to declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you intend to find out more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Mildura on 1300 795 575, or go to our website:bankruptcyexpertsMildura.com.au.

Bankruptcy in Mildura - Are you going to get bitten?

When people in Mildura ask me about Bankruptcy, I let them know the timeless 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 see one last sunset before he passes away. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They journeyed together only for the snake to in the end attack the boy despite his vow not to do so. The snake's reply was 'You knew what I was when you picked me up.

Receiving the right financial advice in Mildura when it comes to Bankruptcy is a great deal like that little boy's experience, filled with risk and danger, and normally skewed for the benefit of the person offering the advice. Often you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with receiving financial advice as a teenager, and it has been central to Bankruptcy. I'd been working hard for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was really profitable. I spent some time researching a variety of investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had good suits and plush offices, they all seemed to exude confidence and have all the solutions. What struck me was that they all had a truly different strategy of what I should do. This frustrated me a lot that it put me off the entire idea of going with any of them.

I'm sure by now 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 learn about the nature of the financial snakes you may be grasping while you are attempting to get to the bottom of your financial problems in Mildura. Basically, you need to try and figure out what your overarching alternatives are, do your very own research into where to proceed with your plan for Bankruptcy, and then approach the things you feel is best in Mildura for your requirements. Basically, you have 3 options for who to turn to.

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

Another choice you may think about is your accountant - they are incredibly helpful and vital to the process 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 option? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and virtually all you need to figure out when it comes to Bankruptcy.

If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult with Bankruptcy Experts Mildura on 1300 795 575, or visit our website:bankruptcyexpertsMildura.com.au.

Bankruptcy in Mildura - Choices, Choice, Choices

When it comes down to Bankruptcy Mildura, there are a great deal of choices that we get given depending upon who we are, who we speak with, and just what has gone wrong. The most common confusion I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Mildura, a lot of the facts you receive on this issue 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 basic way: charging you a fee for helping you wrap every one of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but they aren't going to be doing it for free. Please do not misunderstand me: if you consider your financial troubles in Mildura may possibly be fixed by paying less interest, then go on and explore the options. Even a little amount of interest saved over years quickly adds up.

Normally I find if you are reading this blog you've probably attempted 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 not a single person will offer you a loan, consolidated or otherwise,.

• By the time you work all of it out, you're so far down a hole that saving on a little bit of interest just won't make a great deal of difference,.

• You've quite possibly reached the point where you've had more than enough, you're mentally worn down, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

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

Adaptability 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 firm that advertises on TV. Ultimately this process is similar to Debt Agreements (DA): The trustee holds 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 you can offer them assets as an alternative to cash. This can sound acceptable when it comes to the issues with Bankruptcy - that is until you realise that one of the obstacles with PIA's is that 75 % of the people you owe money to must come to an understanding the deal. If they don't, your proposal is rejected or will have to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they'll settle for less than the amount you owe them - it's normally 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 truly 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 decideded 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 opting 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 wise 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 Mildura aren't going to get that lucky!

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Mildura on 1300 795 575, or visit our website: bankruptcyexpertsMildura.com.au.