Bankruptcy in Rockhampton - Who exactly do I talk to?

Should I speak with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anyone knows your financial situation well in Rockhampton, 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 in mind when it comes to Bankruptcy, it's that his specialization lie in helping you save you money at tax time, minimising your tax liability and lodging your BAS.

Most accounting degrees will devote very little to no time on bankruptcy, it's generally performed as a post graduate specialty course for those who wish to work in the field. Unless your accountant is an insolvency specialist, he won't 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 Rockhampton, they have the tendency to be large firms with very nice office spaces who charge accordingly.

Should I consult with my Solicitor about Bankruptcy?

No! You can speak to your solicitor in Rockhampton but more than likely it won't do you much good. Solicitors are really good at carrying out things lawyers do, like assisting you do your Will and buying your house and keeping you out of court if you're lucky. When it comes to Bankruptcy, the specialists in Rockhampton will have either a legal or accounting experience, and the reason for that is simply that you can't enrol in the post graduate study to become a qualified insolvency practitioner unless you have a law or accounting degree.

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

Should I speak with 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 fantastic option for really helping you think through your circumstance when it comes to Bankruptcy. If you end up stressing out constantly, not sleeping, not eating or over-eating and thinking about money pressures regularly, then get some help.

There are also charitable organizations around Rockhampton like Lifeline that offer an excellent service. They will be a sounding board if you just need someone to talk about with you what your alternatives are. Don't let your financial issue destroy your life - in the end it's just money.

If you would like to learn more about what to do, where to turn and what points to ask about Bankruptcy, then feel free to speak to Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: www.bankruptcyexpertsRockhampton.com.au.

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

When people in Rockhampton come to me trying to speak about Bankruptcy, they are typically loaded with questions. The internet has lots of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make things clearer. One of the most routine troubles is 'Will I lose my business if I declare bankruptcy?' The brief answer is no. If you are a manager of a business any shape or size you can maintain your business if you want to. In Rockhampton, businesses that are insolvent have a few options for example, liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complicated area so get some expert advice on this if you have a business. Generally speaking, the financial debts in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are some crucial implications for directors of companies when it pertains to Bankruptcy in Rockhampton: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to retire as a director as soon as you're bankrupt.

A restriction that applies when you are actually bankrupt as a business owner is that you may be in your very own business as a sole trader only. There are things you should disclose as a part of that but basically you can still run your business. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. Such as, if you run a building company, your license will be suspended once you're bankrupt and as a consequence you can not trade without that license, so make sure you are asking the right questions when it involves licenses and Bankruptcy in Rockhampton.

Having said that 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 acquire heaps of debt in your company, then go bankrupt and after that open the doors the next day like practically nothing had happened. There are laws in place to avoid what is called phoenix companies appearing out of the ashes of an old company.

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

When it comes to Bankruptcy, I think that giving generic advice in this area is potentially risky as it can have very serious implications for directors and business owners. This is because 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 restriction to the size of the business you run even though you are bankrupt. You can employ staff. You can continue to deal with your providers 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 uneasy about what you can and can't do as a business owner, just get the best advice ... If you would like to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: www.bankruptcyexpertsRockhampton.com.au.

Bankruptcy in Rockhampton - Changes to help Small Business and Entrepreneurs

Do you recognize how much Bankruptcy Rockhampton is changing? The Australian Government in late 2015 suggested some innate changes to the Bankruptcy Laws in Australia. One of the most significant of these is the length of time that a person is bankrupt for. At the moment, there is a minimum amount of time that you must stay bankrupt, however, this 3 year period may very well be reduced down to just 12 months. So if you are inquiring about Bankruptcy, this news may be fairly 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 alterations 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 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 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 argument around this Bankruptcy issue in Rockhampton that some make is that this change will only encourage fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to abuse of the bankruptcy system. We have looked at the minimum, but on the other side of the matter, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has performed in an unethical or fraudulent way, and there are no recommendations to change the outcomes of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As an insolvency professional in Rockhampton, I have a decent share of knowledge when it concerns Bankruptcy. And having dealt with thousands of bankruptcy cases in Rockhampton I have never struck someone abusing the system or acting in an immoral way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur suffer through the very complex task of bankruptcy, not once have I perceived they are happy about it. The typical small business owner or entrepreneur in Rockhampton does not start out taking enormous financial risks with the intention to fail. The media really loves citing the apparent wrongdoing 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 very best and brightest in Rockhampton 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, managers keeping this country going.

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

At the major end of town large established companies have long been criticised for their failure to innovate - let’s face it they would be more likely to do so if the risks of insolvency were reduced because directors are troubled they'll be personally liable in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will allow Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I cannot imagine, that these modifications will be destructive to Australia's economy, actually these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is substantial. When it comes to Bankruptcy in Rockhampton not a day goes by where I don't find out the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you really need some help with your debts in Rockhampton or are just thinking about Bankruptcy, don't hesitate to give us a call here at Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: bankruptcyexpertsrockhampton.com.au.

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

When it comes to Bankruptcy Rockhampton, often people aren't aware that there may be both voluntary, and involuntary bankruptcy - each have different approaches and guidelines.

Involuntary bankruptcy arises when a person you owe money to involves the court to declare you bankrupt. Usually when you get one of these kinds of notices, you have actually 21 days to pay all the debt. If you don't, then the creditor goes back 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 documents in and after that you are bankrupt.

You can challenge a bankruptcy notice by going to court immediately after the 21 days have expired and put your case forward, to prevent it going to the next level. Apart from the way you became bankrupt there is in reality no difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're managed to in the very same way.

However, when it comes to Bankruptcy for this, the stress, torment and fear that accompanies this method is incredible. If you think you are likely to be made bankrupt by someone, get some help 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 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 same for everybody of course, but ordinarily I find that one way you could work it out is to figure out just how long it will take you to pay each one of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may really 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 her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can 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 remain on your file for 5 years, so for $30 you can have your credit file truly damaged for that period of time - and all of this will affect how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is vicious. 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 rubbed out completely.

So if your credit rating is a big issue in trying to decide whether to enter into 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 variation is that with a DA or PIA you repay the money and still 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 element more 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 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. Compared to countries like the United States, our bankruptcy laws are very reasonable.

I don't claim 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 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 a lot 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 readily available options. When getting some advice, remember that there are always possibilities when it relates to Bankruptcy in Rockhampton, so do some legwork, and Good luck!

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

Bankruptcy in Rockhampton - Will my income be influenced if I go bankrupt?

Bankruptcy Rockhampton is a complex process, and you have to ensure you get the right advice. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you have to know about going bankrupt is there is no limitation on how much you can earn. However, I will say that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to learn 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 annually. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can apply for a hardship variation that raises the threshold amount, if you have costs in Rockhampton such as medical, child care, significant travel to and from work, or a circumstance 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 told 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 altered net income limit will be $55,332.10.

There are many more issues covering income and what is or isn't considered income - if you're not sure, it's recommended to get professional 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 sensible 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 just as long as that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your situation is more challenging, then just get specialist advice in Rockhampton. I may sound like a broken record, but keep in mind that it's always a good idea to work through these options prior to declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Rockhampton on 1300 795 575, or check out our website: bankruptcyexpertsRockhampton.com.au.

Bankruptcy in Rockhampton - Are you going to get bitten?

When people in Rockhampton ask me about Bankruptcy, I let them know the time-honored 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 dies. The boy was reluctant, but the rattlesnake pledged not to bite him in exchange for the ride. They travelled together only for the snake to ultimately bite the boy despite his vow not to do so. The snake's reply was 'You knew what I was when you picked me up.

Obtaining the right financial advice in Rockhampton when it relates to Bankruptcy is a great deal like that little boy's encounter, filled with risk and danger, and generally skewed for the benefit of the individual supplying the advice. In many cases you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I learned the problem with getting financial advice as a teenager, and it has been fundamental 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 rather high and investing your money was quite profitable. I spent time researching several investment options, and I went to visit a few financial advisors. It was crystal clear that they had more money than I did: they had nice suits and plush offices, they all seemed to exude confidence and have all the answers. What struck me was that they all had an extremely different strategy of what I should do. This baffled me a lot that it put me off the entire idea of picking any of them.

I'm sure by now you have read enough on the internet to be totally unclear about Bankruptcy and just what to do. It would undoubtedly be easier for me to help you comprehend the nature of the financial snakes you might be grabbing while you are attempting to get to the bottom of your financial problems in Rockhampton. Essentially, you have to try and understand what your overarching alternatives are, do your own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Rockhampton for your requirements. Essentially, you have 3 options for who to turn to.

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

Another alternative you may think of is your accountant - they are incredibly useful and vital to the task of running your business, but for the most part, when you are thinking of Bankruptcy, your accountant won't be much help to you at all.

Your best choice? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you have to know 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 contact Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website:bankruptcyexpertsRockhampton.com.au.

Bankruptcy in Rockhampton - Choices, Choice, Choices

When it comes down to Bankruptcy Rockhampton, there are a bunch of options that we get given depending upon who we are, who we talk to, and just 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 Rockhampton, a lot of the help and advice you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, I can assure you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very simple way: charging you a fee for aiding 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 these guys won't be doing it for free. Please don't misunderstand me: if you think your financial problems in Rockhampton could be solved by paying less interest, then go ahead and look into the choices. Even a little amount of interest saved over years rapidly adds up.

Normally I find if you are reading this blog you've probably tried to consolidate your debts already and come to the following realisations like these:

• Your credit rating is no good, and your credit file definitely 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 small amount of interest just won't make a lot of difference,.

• You've likely arrived at the point where you've had enough, you're mentally drained, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.

Personal Insolvency Agreements

So when it comes to Bankruptcy in Rockhampton, what's the huge 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 company that advertises on TV. Basically this process is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys arrange a deal in your place. You can give a lump sum settlement figure or take part in a payment plan, or you can offer them assets rather than cash. This might sound fine when it comes to the problems with Bankruptcy - that is up until you realise that one of the difficulties with PIA's is that 75 % of the people you owe money to must agree on the deal. If they do not, your proposal is rejected or will have to be renegotiated.

Generally people you owe money want all their money back and also interest. Sometimes they'll opt for beneath 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 actually settle for.

In most cases you'll have to pay back 100 % of the debt owed. This is not 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 come across creditors choosing less 80 % on rare occasions, but that usually only occurs with a public company entering 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 clever 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 Rockhampton 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 contact Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website:bankruptcyexpertsRockhampton.com.au.