Wednesday, November 16, 2016

Bankruptcy in Sunshine Coast - Who do I talk to?


Should I speak to my accountant about Bankruptcy?
The answer seems clear doesn't it: if anyone knows your financial situation well in Sunshine Coast, It's going to be your accountant. However, the short answer is a definite No! It's not that your accountant doesn't have your best interests in mind when it comes to Bankruptcy, it's that his know-how lie in helping you save you money at tax time, lowering your tax liability and lodging your BAS.

Most accounting degrees will devote hardly any to no time on insolvency, it's generally done as a post graduate speciality program for those who want 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 manage to find an insolvency accounting firm in Sunshine Coast, they tend to be large firms with very nice offices who charge accordingly.

Should I talk to my Solicitor about Bankruptcy?
No! You can speak with your solicitor in Sunshine Coast but more than likely it won't do you much good. Solicitors are really good at undertaking 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 Sunshine Coast will have either a legal or accounting qualifications, and the reason for that is simply that you can't enrol in the post graduate study to become a qualified insolvency practitioner until 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 sizable price for their expertise.

Should I speak to a financial counsellor about Bankruptcy?
Yes! There are lots of financial counselling services to help you with this, they have no hidden agendas and they're a delightful option for really helping you think through your situation when it comes to Bankruptcy. If you find yourself freaking out constantly, not sleeping, not eating or over-eating and thinking about money pressures constantly, then get some help.

There are also charitable organizations around Sunshine Coast like Lifeline that offer a terrific service. They will be a sounding board if you just need somebody to go over with you what your possibilities are. Don't let your financial issue destroy your life - ultimately 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 call Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Sunshine Coast .

Sunday, August 7, 2016

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


When people in Sunshine Coast come to me trying to talk about Bankruptcy, they are typically loaded with questions. The internet is full of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make it clearer. One of the most typical worries is 'Will I lose my business if I declare bankruptcy?' The short answer is no. If you are an owner of a business any shape or size you can maintain your business if you would like to. In Sunshine Coast, businesses that become insolvent have a few options like liquidation, voluntary administration and so on. It's individuals who go bankrupt not businesses.

Bankruptcy is a complex area so get some reliable advice on this one if you have a business. Generally speaking, the debts in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are a few significant implications for directors of companies when it comes to Bankruptcy in Sunshine Coast: A bankrupt can not be a director of a company, so if you have a pty ltd company you will likely need to resign as a director once you're bankrupt.

A constraint that applies when you are bankrupt as a business owner is that you may be in your own business as a sole trader only. Certainly there are things you need to reveal as an aspect of that but basically you can still run your company. For some business owners, bankruptcy affects 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 as a consequence you can not trade without that license, so make sure you are asking the best questions when it comes to licenses and Bankruptcy in Sunshine Coast.
However 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 not a thing had happened. There are laws in place to prevent what is called phoenix companies appearing out of the ashes of an old business.

Having said that, it's just a point of speaking with the right people about Bankruptcy. In this situation you may think 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 profit from your liquidation - heaps of money - so exactly what advice do you believe you will get?
When it comes to Bankruptcy, I consider that giving generic advice in this area is likely unsafe as it can have very substantial implications for directors and business owners. This is because it is just one of those cases where what the right guidance for one business owner is the incorrect advice for the other. There are some principles however, that you may benefit from. There is no reduce to the size of the business you run though you are bankrupt. You can employ staff. You can continue to deal with your distributors 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 overly uneasy about what you can and can't do as a business owner, just get the appropriate advice ... If you need to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Sunshine Coast .

Sunday, July 3, 2016

Bankruptcy in Sunshine Coast - does it matter if it is voluntary?


When it comes to Bankruptcy Sunshine Coast, often people aren't aware that there can be both voluntary, and involuntary bankruptcy - each have unique approaches and guidelines.

Involuntary bankruptcy occurs when someone you owe money to applies to the court to declare you bankrupt. Typically 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 returns to the court and asks the court to provide a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the documents 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. Apart from 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 conducted to in the exact same way.

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

Voluntary Bankruptcy

Alternatively, when it comes to Bankruptcy, sometimes there are moments that it is the best option. So you may want to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the same for each person of course, but normally I find that one way you could work it out is to figure out just how long it will take you to pay all of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may serve to 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 rate 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 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 impact how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is not fair. The punishment doesn't seem to equate to the crime in my book. So if you currently 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 factor 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 difference 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 talk about 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 over with no strings attached. Compared to countries like the United States, our bankruptcy laws are really reasonable.

I don't pretend to know why that is but a couple of 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 costs the taxpayer anyway.

Bankruptcy wipes all your debts including ATO debts with the exception of a few things:.

·         Centrelink Debts, Court Fines like parking and speeding fines.
·         HECS or Fee Help loans.
·         Money to pay for a car accident if the car was not insured.

There is far more that can be said about doing this and Bankruptcy in general but the purpose of this blog was to help you decide between a few available options. When getting some advice, bear in mind that there are always alternatives when it involves Bankruptcy in Sunshine Coast, so do some investigation, and Good luck!


If you want to find out more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Sunshine Coast .

Monday, May 23, 2016

Bankruptcy in Sunshine Coast - Will my income be changed if I go bankrupt?


Bankruptcy Sunshine Coast is a complicated process, and you ought to be 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 have to know about going bankrupt is there is no limitation on how much you can earn. However, I will point out that your income is a serious consideration when working through when it comes to Bankruptcy.

The first thing you need to learn 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 portion 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 apply for a hardship variation that increases the threshold amount, if you have financial strains in Sunshine Coast like medical, child care, significant travel to and from your job, or a situation where your spouse used to work but is not able to add to the household income.

Some of the intriguing parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into account 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 provide $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 a lot more issues involving income and what is or isn't regarded as income - if you're not exactly sure, it's ideal to get professional advice. The reason you need to 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 whilst you are bankrupt to chip in 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 caps.

If you think when it comes to Bankruptcy, your situation is more challenging, then just get experienced advice in Sunshine Coast. I may seem like a broken record, but bear in mind that it's always a great idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.


If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Sunshine Coast .

Tuesday, May 3, 2016

Bankruptcy in Sunshine Coast - Choices, Choice, Choices


When it comes down to Bankruptcy Sunshine Coast, there are a ton of options that we get given depending on who we are, who we speak with, and just what has happened. One of the most common trouble 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 Sunshine Coast, a lot of the info you receive on this subject will reflect the interests of the advice giver. That is why, if you call a debt consolidation provider, I can promise you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very basic way: charging you a fee for aiding you wrap every one of your credit card and personal loans into just one neat and tidy bundle.

I hate to tell you this but they aren't going to be doing it free of charge. Please don't misunderstand me: if you think your financial problems in Sunshine Coast may be fixed by paying less interest, then go on and look into the choices. Even a small amount of interest saved over years rapidly adds up.

More often than not I find if you read this blog you've most likely tried to consolidate your debts already and come to the following realisations such as these:
  • Your credit rating is no good, and your credit file definitely has nonpayments on it so no one 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 tiny bit of interest simply won't make a great deal of difference,.
  • You've most likely gotten to the point where you've had more than enough, you're emotionally drained, you can't go on yet 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 Sunshine Coast, what's the 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 - might I add - regulated trustee featuring the government trustee ITSA, and not a private agency that advertises on TV. Ultimately this method resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and they negotiate a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or perhaps you can offer them assets rather than cash. This might sound okay when it comes to the troubles with Bankruptcy - that is up until you realize that one of the obstacles with PIA's is that 75 % of the people you owe money to have to agree on the deal. If they don't, your proposal is rejected or will need to be renegotiated.

Generally people you owe money really 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 let me stress this aspect: 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 in fact settle for.

Most of the time 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 settling 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 smart 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 Sunshine Coast aren't going to get that lucky!


If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website: bankruptcy-advice.com.au/Sunshine Coast .

Tuesday, March 22, 2016

Bankruptcy in Sunshine Coast - Are you going to get bitten?



When people in Sunshine Coast 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 passes away. The boy was hesitant, but the rattlesnake pledged not to bite him in exchange for the ride. They travelled together only for the snake to in the end bite the boy despite his promise not to do so. The snake's response was 'You knew what I was when you picked me up.

Asking for the right financial advice in Sunshine Coast when it pertains to Bankruptcy is a whole lot like that little boy's journey, laden with risk and danger, and generally skewed for the benefit of the individual supplying 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 learned 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 pretty high and investing your money was quite profitable. I spent some time researching several investment options, and I went to visit a few financial advisors. It was obvious 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 struck me was that they all had an extremely different idea of what I should do. This confused me so much that it put me off the whole idea of picking 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 understand the nature of the financial snakes you may be grabbing while you are attempting to get to the bottom of your financial concerns in Sunshine Coast. Essentially, you need to try and recognize what your overarching choices are, do your very own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Sunshine Coast for your requirements. Basically, you have 3 options for who to turn to.
The first option is a Solicitor - This may seem the go-to approach when you seem to be in trouble. But there is only just so much support they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their knowledge includes a hefty price.
Another option you may consider is your accountant - they are incredibly helpful and vital to the process of running your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you at all.

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you need to understand when it comes to Bankruptcy.


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 Advice Sunshine Coast on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Sunshine Coast .

Thursday, February 25, 2016

Bankruptcy in Sunshine Coast - Changes that can help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you understand just how much Bankruptcy in Sunshine Coast is changing? The Australian Government in late 2015 posed 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. Right now, there is a minimum amount of time that you must stay bankrupt, having said that, this 3 year period may very well be reduced down 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 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 adjustments to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that protecting family assets was important 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 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 issue around this Bankruptcy issue in Sunshine Coast that some make is that this change will only promote fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to violation of the bankruptcy system. We have looked at the minimum, but on the other side of the issue, The government is not recommending to change the maximum term of 8 years if it deems a bankrupt has appeared in an unethical or fraudulent way, and there are no suggestions to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Sunshine Coast, I have a reasonable share of knowledge when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Sunshine Coast I have never come across someone abusing the system or acting in a careless way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur look at the very problematic task of bankruptcy, not once have I thought they are happy about it. The average small business owner or entrepreneur in Sunshine Coast does not start out taking enormous financial risks with the intent to fail. The media really loves citing the apparent injustice 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 Sunshine Coast 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, employers keeping this country going.

There certainly is a fine line with the things 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 blunders 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 an honest failure in a large or small start-up project that has not worked out.

At the major end of town large organized 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 reduced because directors are troubled they'll be personally accountable in an insolvency arrangement if the new endeavor 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 can not imagine, that these modifications will be detrimental to Australia's economy, in reality 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 Sunshine Coast not a day goes by where I don't find out the tragic stories of relationship failures, thoughts of suicide and the list continues.


Bankruptcy helps save lives, and it could save yours. If you really need some assistance with your debts in Sunshine Coast or are just thinking about Bankruptcy, don't hesitate to contact us here at Bankruptcy Advice Sunshine Coast on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/sunshinecoast