Bankruptcy in Townsville - Who do I talk to?

Should I talk with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody knows your financial circumstance well in Townsville, 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 knowledge lie in helping you save you money at tax time, minimizing your tax liability and lodging your BAS.

Most accounting degrees will devote very little to no time on bankruptcy, it's generally carried out as a post graduate specialty course for those who want to work in the field. Unless your accountant is an insolvency expert, he wouldn't know that a lot about the implications 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 Townsville, they have the tendency to be large firms with very nice office spaces who charge accordingly.

Should I talk to my Solicitor about Bankruptcy?

No! You can speak with your solicitor in Townsville but more than likely it won't do you much good. Solicitors are certainly good at doing 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 Townsville have the tendency to have either a legal or accounting background, and the reason for that is simply that you can't start in the post graduate study to become a qualified insolvency practitioner until you have a law or accounting degree.

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

Should I speak with a financial counsellor about Bankruptcy?

Yes! There are a lot of financial counselling services to aid you with this, they have no hidden agendas and they're a great option for really helping you think through your circumstance when it comes to Bankruptcy. If you find yourself stressing out constantly, not sleeping, not eating or over-eating and thinking of money pressures constantly, then get some help.

There are also charities around Townsville like Lifeline that offer a wonderful 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 would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Townsville on 1300 795 575, or visit our website: www.bankruptcyexpertsTownsville.com.au.

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

When people in Townsville come to me wanting to discuss Bankruptcy, they are always 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 things more clear. One of the very most normal concerns is 'Will I lose my business if I declare bankruptcy?' The concise answer is no. If you are a manager of a company any shape or size you can maintain your business if you would like to. In Townsville, businesses that end up being insolvent have a few options including liquidation, voluntary administration and so on. It's individuals 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 goes bankrupt. There are several significant implications for directors of companies when it comes to Bankruptcy in Townsville: A bankrupt can not be a director of a company, so if you have a pty ltd company you will definitely need to resign as a director after you're bankrupt.

A constraint 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. There are things you should make known as an aspect of that but in essence 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 suspended once you're bankrupt and consequently you can not trade without that license, so make sure you are asking the ideal questions when it involves licenses and Bankruptcy in Townsville.

However if your business is not impacted directly by such issues, then you'll need to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not rack up heaps of debt in your business, then go bankrupt 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 popping up out of the ashes of an old company.

Having said that, it's just an issue of consulting with the correct people about Bankruptcy. Here in this situation you may think you need a liquidator for your company, and you could be right, but remember that every liquidator is unique 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 risky as it can have very considerable implications for directors and business owners. This is since it is one of those cases where what the right guidance for one business owner is the inappropriate 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 continue to deal with your manufacturers 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 extremely 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, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Townsville on 1300 795 575, or visit our website:.bankruptcyexpertsTownsville.com.au.

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

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

Involuntary bankruptcy arises when a person you owe money to involves the court to declare you bankrupt. Generally when you get one of these types of notices, you have 21 days to pay all the debt. If you do not, then the creditor returns to the court and asks 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 then you are bankrupt.

You can object to a bankruptcy notice by going to court 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 difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're overseen to in the 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 probable to be made bankrupt by someone, get some advice and act on that advice. Generally I've found it's always much better to know what you can and can't do before you have someone bankrupt you. Once you are bankrupt, it's typically too late.

Voluntary Bankruptcy

On the other hand, when it comes to Bankruptcy, sometimes there are times that it is the best option. So you may need to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for everyone of course, but ordinarily I find that one way you could work it out is to figure out 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 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 telephone 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 impact how you need to approach Bankruptcy.

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

So if your credit rating is a big issue 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 change is that with a DA or PIA you pay back the money and still 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 more people are afraid of when they come to me to discuss their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. As compared to countries like the United States, our bankruptcy laws are extremely good.

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 thinks 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 pay for a car accident if the car was not insured.

There is much more that can be said about this and Bankruptcy in general but the objective of this blog was to help you decide between a few available options. When getting some advice, don't forget that there are always options when it comes to Bankruptcy in Townsville, so do some groundwork, and Good luck!

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

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

Bankruptcy Townsville is a confusing process, and you have to ensure you get the right recommendations. 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 restraint on how much you can earn. However, I will point out that your income is a significant consideration when working through when it comes to Bankruptcy.

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

You can look for a hardship variation that increases the threshold amount, if you have costs in Townsville like medical, child care, sizable travel to and from your job, or a circumstance where your spouse used to work but is not able to add to the household income.

Some of the informative parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always looked at 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 give $5,000 child support each year and you have no dependents living with you then your modified net income limit will be $55,332.10.

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

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO while 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 so long as that doesn't take you over your threshold income caps.

If you think when it comes to Bankruptcy, your circumstance is more complicated, then simply get experienced advice in Townsville. I may sound like a broken record, but remember that it's always a great 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 issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Townsville on 1300 795 575, or visit our website: bankruptcyexpertsTownsville.com.au.

Bankruptcy in Townsville - Choices, Choice, Choices

 When it comes down to Bankruptcy Townsville, there are a lot of choices that we get given depending on who we are, who we speak to, and exactly what has happened. One of 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 Townsville, much of the facts you receive on this subject matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can guarantee you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for 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 they aren't going to be doing it for free. Please don't misunderstand me: if you feel your financial problems in Townsville can be solved by paying less interest, then go ahead and investigate the options. Even a tiny amount of interest saved over years quickly adds up.

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

• Your credit rating is no good, and your credit file already has nonpayments on it so nobody 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 a small amount of interest simply won't make a great deal of difference,.

• You've probably gotten to the point where you've had enough, you're emotionally worn down, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail etc.

Personal Insolvency Agreements

So when it concerns Bankruptcy in Townsville, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Overall flexibility is the main point Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - may I add - regulated trustee featuring the government trustee ITSA, and not a private firm that advertises on TV. Basically this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these experts negotiate a deal in your place. You can offer a lump sum settlement figure or take part in a payment plan, or you can offer them assets instead of cash. This can sound okay when it comes to the complications 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 need to agree on the deal. If they don't, your plan is denied or will need to be renegotiated.

Generally people you owe money want all their money back as well as interest. Sometimes they'll settle for beneath the amount you owe them - it's generally 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 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 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 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 Townsville 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 Townsville on 1300 795 575, or visit our website:bankruptcyexpertsTownsville.com.au.

Bankruptcy in Townsville - Are you going to get bitten?

When people Townsville ask me about Bankruptcy, I let them know the classic 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 discover one last sunset before he dies. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They journeyed together only for the snake to eventually bite the boy despite his assurance not to do so. The snake's answer was 'You knew what I was when you picked me up.'.

Asking for the right financial advice in Townsville when it comes to Bankruptcy is a great deal like that little boy's journey, laden with risk and danger, and typically skewed for the benefit of the individual supplying the advice. In many 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 quite profitable. I spent some time researching varied 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 appeared to exude confidence and have all the solutions. What hit me was that they all had a truly different strategy of what I should do. This confused me a lot that it put me off the entire idea of opting for any of them.

I'm sure currently you have read more than enough on the internet to be totally bewildered about Bankruptcy and just what to do. It would most likely be easier for me to help you comprehend the nature of the financial snakes you may be grabbing while you are attempting to get to the bottom of your financial concerns in Townsville. In essence, you need to try and understand what your overarching choices are, do your own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Townsville for your requirements. Basically, you have 3 options for who to turn to.

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

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

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you need 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 get in touch with Bankruptcy Experts Townsville on 1300 795 575, or visit our website: www.bankruptcyexpertsTownsville.com.au.

Bankruptcy in Townsville - Changes that help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Townsville is changing? The Australian Government at the end of 2015 recommended some inherent changes to the Bankruptcy Laws in Australia. 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 remain 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 considerably 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 adjustments 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 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 about this Bankruptcy issue in Townsville that some come up with is that this modification will only strengthen fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to defilement of the bankruptcy system. We have considered 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 plans to change the penalties of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As an insolvency professional in Townsville, I have a reasonable share of knowledge when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Townsville 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 look at the very tough task of bankruptcy, not once have I thought they are happy about it. The typical small business owner or entrepreneur in Townsville does not start out taking enormous financial risks with the intent to fail. The media loves citing the apparent wrongdoing that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These suggested changes will be good for often the best and brightest in Townsville not get kicked 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.

Truth be told there is a fine line with precisely what the government is trying to do here, because they are attempting to balance helping people who have made decisions out of their control, and dissuading people from making miscalculations that land them in trouble and consequently an issue of Bankruptcy. However you also 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 a sincere 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 scaled down because directors are worried they'll be personally responsible in an insolvency arrangement if the new endeavor doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will enable Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I cannot imagine, that these differences 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 field because the emotional cost of bankruptcy is substantial. When it comes to Bankruptcy in Townsville not a day goes by where I don't find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you need some assistance with your debts in Townsville or are just considering Bankruptcy, feel free to phone us here at Bankruptcy Experts Townsville on 1300 795 575, or visit our website: www.bankruptcyexpertstownsville.com.au