Bankruptcy in Sydney - Who do I talk to?

Should I talk with my accountant about Bankruptcy?

The answer seems clear doesn't it: if anyone knows your financial situation well in Sydney, 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 abilities lie in helping you save you money at tax time, minimising your tax liability and lodging your BAS.

Most accounting degrees will invest hardly any to no time on insolvency, it's generally done as a post graduate specialty program for those who intend to work in the field. Unless your accountant is an insolvency expert, he will not know that a lot about the effects of Bankruptcy, I can assure you insolvency specialists know much about tax returns or BAS in. If you do happen to find an insolvency accounting firm in Sydney, they have the tendency to be large firms with very nice offices who charge accordingly.

Should I consult my Solicitor about Bankruptcy?

No! You can talk with your solicitor in Sydney but more than likely it won't do you much good. Solicitors are really good at carrying out things lawyers do, like helping you do your Will and buying your house and keeping you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Sydney often have either a legal or accounting experience, and the main 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 handful of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you locate one you will pay a hefty 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 through this, they have no hidden agendas and they're a wonderful option for really helping you analyze 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 at all times, then get some help.

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

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

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

When people in Sydney come to me wanting to speak about Bankruptcy, they are usually packed with 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 more clear. One of the most basic worries is 'Will I lose my business if I declare bankruptcy?' The quick answer is no. If you are a manager of a company any shape or size you can keep your business if you want to. In Sydney, businesses that end up being insolvent have a few options including liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complicated area so get some professional advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are a few significant implications for directors of companies when it pertains to Bankruptcy in Sydney: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to resign as a director as soon as you're bankrupt.

A limitation that applies when you are generally bankrupt as a business owner is that you can be in your very own business as a sole trader only. Certainly there are things you should reveal as an aspect of that but in a nutshell you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. As an example, if you run a building company, your license will be suspended once you're bankrupt and therefore you can not trade without that license, so make sure you are asking the appropriate questions when it comes to licenses and Bankruptcy in Sydney.

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 and after that open the doors the next day like almost nothing had happened. There are laws in place to stop what is called phoenix companies popping up out of the ashes of an old business.

Having said that, it's just an issue of consulting with the suitable people about Bankruptcy. Here in this circumstance you may think you need a liquidator for your business, and you could be right, but keep in mind that every liquidator is different 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 consider that giving generic advice in this area is possibly perilous 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 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 constantly 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 confused about what you can and can't do as a business owner, just get the appropriate advice ... If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Sydney on 1300 795 575, or visit our website: .bankruptcyexpertsSydney.com.au.

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

When people in Sydney come to me wanting to speak about Bankruptcy, they are usually packed with 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 more clear. One of the most basic worries is 'Will I lose my business if I declare bankruptcy?' The quick answer is no. If you are a manager of a company any shape or size you can keep your business if you want to. In Sydney, businesses that end up being insolvent have a few options including liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complicated area so get some professional advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are a few significant implications for directors of companies when it pertains to Bankruptcy in Sydney: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to resign as a director as soon as you're bankrupt.

A limitation that applies when you are generally bankrupt as a business owner is that you can be in your very own business as a sole trader only. Certainly there are things you should reveal as an aspect of that but in a nutshell you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. As an example, if you run a building company, your license will be suspended once you're bankrupt and therefore you can not trade without that license, so make sure you are asking the appropriate questions when it comes to licenses and Bankruptcy in Sydney.

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 and after that open the doors the next day like almost nothing had happened. There are laws in place to stop what is called phoenix companies popping up out of the ashes of an old business.

Having said that, it's just an issue of consulting with the suitable people about Bankruptcy. Here in this circumstance you may think you need a liquidator for your business, and you could be right, but keep in mind that every liquidator is different 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 consider that giving generic advice in this area is possibly perilous 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 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 constantly 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 confused about what you can and can't do as a business owner, just get the appropriate advice ... If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Sydney on 1300 795 575, or visit our website: .bankruptcyexpertsSydney.com.au.

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

When it comes to Bankruptcy Sydney, often people aren't aware that there can be both voluntary, and involuntary bankruptcy - the two have different approaches and guidelines.

Involuntary bankruptcy takes place when someone you owe money to involves the court to declare you bankrupt. Generally when you get one of these 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 appointed, and then you have 14 days to get the paperwork in and afterwards you are bankrupt.

You can object to a bankruptcy notice by going to court shortly 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 reality no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're conducted to in the same way.

However, when it concerns Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this process is incredible. If you think you are probable to be made bankrupt by someone, get some tips and act on that advice. Generally I've found it's always better 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

Alternatively, when it comes to Bankruptcy, sometimes there are times 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 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 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 service will default your credit file. That default will remain 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 unjustifiable. 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 wiped off 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 stated 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 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 finished with no strings attached. Compared to countries like the United States, our bankruptcy laws are really good.

I don't pretend to know why that is but a couple of hundred years ago debtors went to prison. These days I suppose the government finds that 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 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 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, keep in mind that there are always possibilities when it involves Bankruptcy in Sydney, so do some investigation, and Good luck!

If you wish to find out more about just what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to speak to Bankruptcy Experts Sydney on 1300 795 575, or visit our website: bankruptcyexpertsSydney.com.au.

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

Bankruptcy Sydney is a challenging process, and you have to ensure you get the right insight. 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 restraint 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 keep in mind about this area of Bankruptcy is the amount you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand quantity you earn per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can apply for a hardship variation that raises the threshold amount, if you have financial strains in Sydney 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 contribute to the household income.

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

There are many more issues covering income and what is or isn't thought of as income - if you're not sure, it's ideal to get skilled advice. The reason you will need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically sensible 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 as long as that doesn't take you over your threshold income limits.

If you think when it comes to Bankruptcy, your circumstance is more complex, then simply get qualified advice in Sydney. I may seem like a broken record, but keep in mind that it's always a great idea to work through these options before declaring bankruptcy, because 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 problems to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Sydney on 1300 795 575, or visit our website:bankruptcyexpertsSydney.com.au.

Bankruptcy in Sydney - Choices, Choice, Choices

 When it comes to Bankruptcy Sydney, there are a ton of choices that we get given depending on who we are, who we approach, and just what has gone wrong. 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 Sydney, most 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 provider, 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 basic way: charging you a fee for helping you wrap every one of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but they aren't going to be doing it free of charge. Please do not misunderstand me: if you think your financial issues in Sydney may possibly be fixed by paying less interest, then go ahead and look into the options. Even a little amount of interest saved over years rapidly adds up.

Generally I find if you are reading this blog you've most likely 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 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 gotten to the point where you've had more than enough, you're mentally exhausted, 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 relates to Bankruptcy in Sydney, 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 business 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 arrange a deal on your behalf. You can give a lump sum settlement figure or enter into a payment plan, or perhaps you can offer them assets instead of cash. This can sound fine when it comes to the troubles with Bankruptcy - that is until you realise that one of the difficulties with PIA's is that 75 % of the people you owe money to need to agree on the deal. If they don't, your proposal is rejected or needs to be renegotiated.

Generally the people you owe money really want all their money back plus interest. Sometimes they'll opt for less than the amount you owe them - it's generally 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 really settle for.

Most of the time 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 heard of creditors choosing 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 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 Sydney 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 Sydney on 1300 795 575, or visit our website:bankruptcyexpertsSydney.com.au.

Bankruptcy in Sydney - Are you going to get bitten?

When people in Sydney ask me about Bankruptcy, I tell them 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 hesitant, but the rattlesnake promised not to bite him in exchange for the ride. They journeyed together only for the snake to ultimately bite the boy despite his promise not to do so. The snake's answer was 'You knew what I was when you picked me up.'.

Getting the right financial advice in Sydney when it concerns Bankruptcy is a lot like that little boy's encounter, laden with risk and danger, and normally skewed for the benefit of the individual providing the advice. Often you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been fundamental 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 rather high and investing your money was really 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 great suits and plush offices, they all seemed to exude confidence and have all the solutions. What hit me was that they all had a really different idea of what I should do. This puzzled me so much that it put me off the entire idea of selecting any of them.

I'm sure by now you have read more than enough on the internet to be totally confused about Bankruptcy and just what to do. It would most likely be easier for me to help you learn about the nature of the financial snakes you might be grasping while you are attempting to get to the bottom of your financial issues in Sydney. In essence, you have to try and figure out what your overarching choices are, do your very own research into where to proceed with your plan for Bankruptcy, and after that approach the things you feel is best in Sydney for your needs. Basically, you have 3 options for who 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 just so much support they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their experience comes along with a hefty price.

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

Your best option? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you need to know when it comes to Bankruptcy.

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 Experts Sydney on 1300 795 575, or visit our website: www.bankruptcyexpertsSydney.com.au.

Bankruptcy in Sydney - Changes to help Small Business and Entrepreneurs

 

Do you recognize how much Bankruptcy in Sydney is changing? The Australian Government in late 2015 set forth some foundational changes to the Bankruptcy Laws in Australia. Among the most significant of these is the length of time that a person is bankrupt for. At this time, there is a minimum amount of time that you must continue to be bankrupt, having said that, this 3 year period may very well be reduced to just 12 months. So if you are asking about Bankruptcy, this news may be quite 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 alterations to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that safeguarding 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 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 issue around this Bankruptcy issue in Sydney that some make 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 behaved in an unethical or fraudulent way, and there are no recommendations to change the repercussions of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Sydney, I have a decent share of experience when it concerns Bankruptcy. And having dealt with thousands of bankruptcy cases in Sydney I have never struck someone abusing the system or acting in a careless way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur undergo the very hard task of bankruptcy, not once have I perceived they are happy about it. The standard small business owner or entrepreneur in Sydney 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 proposed changes will be good for often the very best and brightest in Sydney 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 really is a fine line with what exactly the government is trying to do here, because they are trying to balance helping individuals 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 also don't want to destroy the experience and knowledge that business owners have. You definitely don't want to smash people simply because they have had an honest failure in a large or small start-up enterprise that has not gone well.

At the big end of town large 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 reduced because directors are troubled they'll be personally accountable in an insolvency arrangement if the new project 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 updates for Bankruptcy. I can not imagine, that these developments will be detrimental to Australia's economy, indeed 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 extensive. When it comes to Bankruptcy in Sydney 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 really need some help with your debts in Sydney or are just thinking about Bankruptcy, don't hesitate to call us here at Bankruptcy Experts Sydney on 1300 795 575, or visit our website: WWW.bankruptcyexpertssydney.com.au.