Wednesday, November 16, 2016

Bankruptcy in Brisbane - Who exactly do I talk to?


Should I consult with my accountant about Bankruptcy?
The answer seems obvious doesn't it: if anybody knows your financial situation well in Brisbane, It's going to be your accountant. However, the short answer is a definite No! It's not that your accountant won't have your best interests at heart when it comes to Bankruptcy, it's that his specialization lie in helping you save you money at tax time, lowering your tax liability and lodging your BAS.

Most accounting degrees will put in hardly any to no time on bankruptcy, it's generally performed as a post graduate speciality program for those who intend 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 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 offices who charge accordingly.

Should I talk with my Solicitor about Bankruptcy?
No! You can talk with your solicitor in Brisbane 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 trying to keep you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Brisbane 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 unless you have a law or accounting degree.

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

Should I talk to a financial counsellor about Bankruptcy?
Yes! There are plenty of financial counselling services that can help you with this, they have no hidden agendas and they're a fabulous option for helping you think through your circumstance when it comes to Bankruptcy. If you end up freaking out constantly, not sleeping, not eating or over-eating and thinking of money pressures at all times, then get some help.

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

If you wish to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then feel free to call Bankruptcy Advice Brisbane on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Brisbane .

Sunday, August 7, 2016

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


When people in Brisbane come to me planning to talk about Bankruptcy, they are usually full of questions. The internet has plenty of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make it clearer. One of the very most general matters 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 wish to. In Brisbane, businesses that end up being insolvent have a few options such as liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complicated area so get some expert 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 some essential implications for directors of companies when it comes to Bankruptcy in Brisbane: A bankrupt can not be a director of a company, so if you have a pty ltd company you definitely will 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. Generally there are things you have to 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. For example, 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 ideal questions when it concerns licenses and Bankruptcy in Brisbaane.

On the other hand 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 acquire heaps of debt in your company, then go bankrupt and after that open the doors the next day like absolutely nothing had happened. There are laws in place to stop what is called phoenix companies growing out of the ashes of an old company.

Having said that, it's just a matter of consulting with the suitable people about Bankruptcy. Here in this circumstance you may believe you need a liquidator for your business, and you might be right, but keep that in mind every liquidator is distinct and have their own motives. Liquidators profit from your liquidation - heaps of money - so what advice do you think you will get?

When it comes to Bankruptcy, I think that giving generic advice in this area is potentially dangerous as it can have very severe 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 basics however, that you may benefit from. There is no restriction to the size of the business you run while 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 extremely worried about what you can and can't do as a business owner, just get the right 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 contact Bankruptcy Experts Brisbane on 1300 795 575, or visit our website:.bankruptcyexpertsBrisbane.com.au.

Sunday, July 3, 2016

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


When it comes to Bankruptcy Brisbane, usually people aren't aware that there can be both voluntary, and involuntary bankruptcy - both of these have unique approaches and guidelines.

Involuntary bankruptcy arises when someone you owe money to involves the court to declare you bankrupt. Usually when you get one of these notices, you have normally 21 days to pay all the debt. If you do not, then the creditor goes back to the court and asks the court to issue a sequestration order that declares you bankrupt. A trustee is assigned, and then you have 14 days to get the documentation in and then you are bankrupt.

You can contest 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. Apart from the way you became bankrupt there is in reality no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're managed to in the very same way.

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

Voluntary Bankruptcy

Alternatively, 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 same for everyone 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 came 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 remain on your file for 5 years, so for $30 you can have your credit file very 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 not fair. The punishment doesn't seem to match the crime in my book. So if you already 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 wiped off completely.

So if your credit rating is a big aspect in trying to decide whether to participate 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 still 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 go over 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 finished with no strings attached. As compared to countries like the United States, our bankruptcy laws are very good.

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 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 all of your debts including ATO debts except for a few things:

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

There is a lot 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 readily available options. When getting some advice, always remember that there are always options when it concerns 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 don't hesitate to contact Bankruptcy Advice Brisbane on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Brisbane .


Sunday, May 22, 2016

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


Bankruptcy Brisbane is a intricate process, and you need to make sure 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 need to know about going bankrupt is there is no limit on how much you can earn. However, I will point out that your income is a considerable 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 quantity you earn each 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 costs in Brisbane like medical, child care, considerable travel to and from work, or a situation where your spouse used to work but is not able to add to the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be alerted 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 considered, for example if you pay $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 more issues encompassing income and what is or isn't regarded as income - if you're uncertain, it's recommended to get experienced advice. The reason you need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically practical 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 contribute 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 believe that when it comes to Bankruptcy, your situation is more complicated, then please get qualified advice in Brisbane. I may sound like a broken record, but remember that it's always a good idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.


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

Monday, May 2, 2016

Bankruptcy in Brisbane - Choices, Choice, Choices





When it comes down to Bankruptcy Brisbane, there are a load of choices that we get given depending on who we are, who we speak to, and what exactly 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 Brisbane, much of the info you receive on this topic 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 assisting you wrap each one of your credit card and personal loans into just one neat and tidy package.

I hate to tell you this but they won't be doing it for free. Please do not misunderstand me: if you believe your financial issues in Brisbane may possibly be solved by paying less interest, then go ahead and explore the options. Even a small amount of interest saved over years rapidly adds up.

Usually I find if you read this blog you've probably attempted 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 offer you a loan, consolidated or otherwise,.
  • By the time you work it all out, you're so far down a hole that saving a tiny bit of interest simply won't make a great deal of difference,.
  • You've quite possibly gotten to the point where you've had more than enough, you're mentally burnt out, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.


Personal Insolvency Agreements

So when it comes to Bankruptcy in Brisbane, what's the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Freedom 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 including the government trustee ITSA, and not a private company that advertises on TV. Ultimately this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys arrange a deal on your behalf. You can give a lump sum settlement figure or enter into a payment plan, or you can offer them assets rather than cash. This might sound okay when it comes to the problems with Bankruptcy-- that is up until you realize that one of the problems with PIA's is that 75 % of the people you owe money to have to come to an understanding the deal. If they don't, your plan is rejected or will need to be renegotiated.

Generally the people you owe money really want all their money back and also interest. Sometimes they'll settle for less than the amount you owe them - it's typically 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 actually settle for.

In many 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 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 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 call Bankruptcy Advice Brisbane on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Brisbane .

Tuesday, March 22, 2016

Bankruptcy in Brisbane - Are you going to get bitten?


When people in Brisbane ask me about Bankruptcy, I tell them 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 view one last sunset before he passes away. The boy was reluctant, but the rattlesnake vowed not to bite him in exchange for the ride. They went together only for the snake to ultimately bite the boy despite his assurance not to do so. The snake's reply 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, fraught with risk and danger, and usually skewed for the benefit of the person offering 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 vital 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 pretty high and investing your money was quite profitable. I spent time researching different investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had good suits and plush offices, they all appeared to exude confidence and have all the answers. What struck me was that they all had a very different idea of what I should do. This frustrated me so much that it put me off the entire idea of choosing any of them.

I'm sure by now you have read enough on the internet to be totally puzzled about Bankruptcy and what to do. It would probably be easier for me to help you comprehend the nature of the financial snakes you may be grasping while you are attempting to get to the bottom of your financial troubles in Brisbane. Essentially, you have to try and figure out what your overarching alternatives are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Brisbane 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 choice when you seem to be in trouble. But there certainly is only just so much assistance they can give on this matter. There are absolutely specialist legal advisors in bankruptcy, but their expertise features a hefty price.

Another possibility you may consider is your accountant - they are incredibly useful and vital to the task of operating your business, but for the most part, when you are considering Bankruptcy, your accountant won't be much help to you anymore.

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

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Advice Brisbane on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Brisbane.


Thursday, February 25, 2016

Bankruptcy in Brisbane - Changes that can help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you know how much Bankruptcy in Brisbane is changing? The Australian Government at the end of 2015 came up with 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. Now, there is a minimum amount of time that you must continue to be bankrupt, but, this 3 year period may in fact 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 suggested 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 modifications 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 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 Behaviour.

The argument about this Bankruptcy issue in Brisbane that some make is that this variation will only push fraudulent behaviour 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 suggestions to change the consequences of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Brisbane, I have a decent share of knowledge when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Brisbane I have never struck someone abusing the system or acting in a careless way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, every 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 average small business owner or entrepreneur in Brisbane does not start out taking enormous financial risks with the intention to fail. The media really loves citing the apparent wrongdoing that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These proposed changes will be good for often the most effective and brightest in Brisbane not get tossed 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, managers keeping this country going.

Truth be told there is a fine line with exactly 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 deterring people from making missteps that land them in trouble and as a result an issue of Bankruptcy. However you also don't want to eliminate the experience and knowledge that business owners have. You definitely don't want to smash people simply because they have had a genuine failure in a large or small start-up enterprise that has not worked out.

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 decreased because directors are worried they'll be personally accountable in an insolvency arrangement if the new endeavor 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 can not imagine, that these improvements will be destructive 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 substantial. When it comes to Bankruptcy in Brisbane not a day goes by where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list continues.


Bankruptcy helps save lives, and it could save yours. If you want some help with your debts in Brisbane or are just considering Bankruptcy, feel free to call us here at Bankruptcy Advice Brisbane on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/brisbane