Bankruptcy in Brisbane - Who exactly do I speak to?

Should I get in touch with my accountant about Bankruptcy?

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

Most accounting degrees will put in very little to no time on insolvency, it's generally performed as a post graduate speciality program for those who want to work in the field. Unless your accountant is an insolvency expert, he would not know that a lot about the effects of Bankruptcy, I can guarantee you insolvency specialists know much about tax returns or BAS in. If you do happen to find an insolvency accounting firm in Brisbane, they have the tendency to be large firms with very nice office spaces who charge accordingly.

Should I talk with my Solicitor about Bankruptcy?

No! You can talk to your solicitor in Brisbane 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 Brisbane generally have either a legal or accounting experience, and the main 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 locate one you will pay a sizable 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 through this, they have no hidden agendas and they're a superb option for helping you analyze your situation when it comes to Bankruptcy. If you find yourself stressing out constantly, not sleeping, not eating or over-eating and thinking of money pressures continuously, then get some help.

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

If you like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-Brisbane

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

When people in Brisbane come to me seeking to speak about Bankruptcy, they are usually full of questions. The internet has plenty 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 popular troubles 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 maintain your business if you would like to. In Brisbane, businesses that end up being insolvent have a few options just like liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complex area so get some experienced advice on this one 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 necessary implications for directors of companies when it pertains to Bankruptcy in Brisbane: 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 soon after you're bankrupt.

A restriction that applies when you are actually bankrupt as a business owner is that you can be in your very own business as a sole trader only. There are things you need to disclose as an aspect of that but generally you can still run your company. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. For example, if you run a building company, your license will be suspended once you're bankrupt and as a consequence you can no longer trade without that license, so make sure you are asking the right questions when it concerns licenses and Bankruptcy in Brisbane.

But if your business is not impacted directly by such issues, then you'll will 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 company, then go bankrupt and after that open the doors the next day like nothing at all had happened. There are laws in place to avoid what is called phoenix companies growing out of the ashes of an old business.

Having said that, it's just an issue of speaking to the correct people about Bankruptcy. In this situation you may believe you need a liquidator for your business, and you could be right, but bear in mind that every liquidator is unique and have their own motives. Liquidators make 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 perilous 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 fundamentals however, that you may benefit from. There is no limit to the size of the business you run while you are bankrupt. You can employ staff. You can continue to deal with your suppliers 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 upset about what you can and can't do as a business owner, just get the best advice ... If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult Bankruptcy Advice Brisbane on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Brisbane .

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

When it comes to Bankruptcy Brisbane, often people aren't aware that there are both voluntary, and involuntary bankruptcy - the two have distinct approaches and policies.

Involuntary bankruptcy takes place when someone you owe money to applies to the court to declare you bankrupt. Typically when you get one of these types of notices, you have normally 21 days to pay all the debt. If you don't, then the creditor goes back 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 after that you are bankrupt.

You can challenge a bankruptcy notice by going to court after the 21 days have expired and put your case forward, to stop 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 simply declared bankrupt, they're administered to in the very same way.

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

Voluntary Bankruptcy

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

This question is not the same for everybody of course, but generally 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 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 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 forget 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 have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unethical. The punishment doesn't seem to equal the crime in my book. So if you already 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 wiped off completely.

So if your credit rating is a big element 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 nevertheless have it on your file for 7 years.

Bankruptcy

I have stated 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 review their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this specific country the provisions 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 quite 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 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 with the exception of 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 far 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, always remember that there are always choices when it comes to Bankruptcy in Brisbane, so do some investigation, and Good luck!

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

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

Bankruptcy Brisbane is a confusing process, and you should ensure you get the right guidance. 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 constraint on how much you can earn. However, I will mention that your income is a considerable consideration when working through when it comes to Bankruptcy.

The very first thing you need to keep in mind 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 sum 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 financial commitments in Brisbane like medical, child care, considerable travel to and from work, or a situation where your partner used to work but is no longer able to add to the family income.

Some of the useful parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always considered 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 amended net income limit will be $55,332.10.

There are more issues encompassing income and what is or isn't regarded as income - if you're not sure, it's a good idea to get professional advice. The reason you have 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 will likely 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 restrictions.

If you think when it comes to Bankruptcy, your situation is more complicated, then simply get qualified advice in Brisbane. I may seem like a broken record, but bear in mind that it's always a good idea to work through these options before declaring bankruptcy, due to the fact that 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 problems to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Brisbane on 1300 795 575, or visit our website: bankruptcyexpertsBrisbane.com.au.

Bankruptcy in Brisbane - Choices, Choice, Choices

When it comes down to Bankruptcy Brisbane, there are a ton of choices that we get given depending on who we are, who we speak with, and what exactly 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 Brisbane, a lot of the help and advice you receive on this issue will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, I can promise 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 each 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 going to be doing it free of charge. Please do not misunderstand me: if you feel your financial problems in Brisbane may be fixed by paying less interest, then go on and look into the choices. Even a little amount of interest saved over years rapidly adds up.

More often than not I find if you read this blog you've undoubtedly tried to consolidate your debts already and come to the following realisations like these:

• Your credit rating is not good, and your credit file definitely has defaults on it so not a single person will give you a loan, consolidated or otherwise,.

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

• You've most probably reached the point where you've had enough, you're mentally burnt out, 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 Brisbane, what's the big 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 including the government trustee ITSA, and not a private agency that advertises on TV. Essentially this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts arrange a deal in your place. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets instead of cash. This may sound okay when it comes to the issues with Bankruptcy - that is until you realize that one of the problems with PIA's is that 75 % of the people you owe money to will have to agree on the deal. If they don't, your plan is denied or must be renegotiated.

Generally the people you owe money really want all their money back plus interest. Sometimes they'll go for less than the amount you owe them - it's normally a percentage of the debt - but allow me to 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 truly settle for.

In many 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 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 come across creditors settling for 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 smart lawyers and some very clever structures in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Brisbane 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 Brisbane on 1300 795 575, or visit our website: bankruptcyexpertsBrisbane.com.au.

Bankruptcy in Brisbane - Are you going to get bitten?

When people in Brisbane ask me about Bankruptcy, I tell them 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 went together only for the snake to ultimately bite the boy despite his vow not to do so. The snake's response was 'You knew what I was when you picked me up.

Getting the right financial advice in Brisbane when it concerns Bankruptcy is a whole lot like that little boy's journey, filled with risk and danger, and normally skewed for the benefit of the person providing 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 getting 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 very high and investing your money was rather profitable. I spent a few years researching varying investment options, and I went to visit a few financial advisors. It was clear 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 very different strategy of what I should do. This frustrated me a lot that it put me off the whole idea of picking any of them.

I'm sure currently you have read more than enough on the internet to be totally lost about Bankruptcy and just what to do. It would probably be easier for me to help you comprehend the nature of the financial snakes you could be grabbing while you are trying to get to the bottom of your financial problems in Brisbane. Essentially, you need to try and comprehend what your overarching choices are, do your own research into where to proceed with your strategy for Bankruptcy, and then approach what you feel is best in Brisbane for your needs. Basically, you have 3 options for whom to turn to.

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

Another option you may think of is your accountant - they are incredibly helpful and vital to the task of managing your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you anymore.

Your best option? A Financial Counsellor that can talk about 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 speak to Bankruptcy Experts Brisbane on 1300 795 575, or visit our website: bankruptcyexpertsBrisbane.com.au.

Bankruptcy in Brisbane - Changes to aid Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you appreciate just how much Bankruptcy in Brisbane is changing? The Australian Government in late 2015 suggested some radical 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, but, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be rather 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 changes to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that shielding 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 prevented 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 controversy about this Bankruptcy issue in Brisbane that some make is that this change will only push fraudulent behavior opening pandora's box so to speak for the unscrupulous to defilement of the bankruptcy system. We have looked at the minimum, but on the other side of the problem, The government is not submitting 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 suggestions to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Brisbane, I have a decent share of experience when it comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Brisbane I have never come across someone abusing the system or acting in an irresponsible way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur suffer through the very tough task of bankruptcy, not once have I felt they are happy about it. The normal small business owner or entrepreneur in Brisbane does not start out taking enormous financial risks with the intent to fail. The media prefers citing the apparent misuse 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 very best and brightest in Brisbane 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, companies keeping this country going.

There certainly is a fine line with just what the government is trying to do here, because they are attempting to balance helping individuals who have made decisions out of their control, and dissuading people from making problems that land them in trouble and consequently an issue of Bankruptcy. However you likewise don't want to destroy the experience and knowledge that business owners have. You surely don't want to shatter people simply because they have had an honest failure in a large or small start-up venture that has not succeeded.

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 lessened because directors are distressed they'll be personally responsible in an insolvency arrangement if the new project doesn't work out.

The government's proposed '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 developments will be destructive to Australia's economy, in reality 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 Brisbane not a day passes where I don't hear the tragic experiences 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 assistance with your debts in Brisbane or are just thinking about Bankruptcy, feel free to call us here at Bankruptcy Experts Brisbane on 1300 795 575, or visit our website: www.bankruptcyexpertsbrisbane.com.au