Bankruptcy in Dubbo - Who do I talk to?

Should I talk to my accountant about Bankruptcy?

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

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

Should I chat with my Solicitor about Bankruptcy?

No! You can talk with your solicitor in Dubbo but more than likely it won't do you much good. Solicitors are definitely good at undertaking things lawyers do, like assisting you do your Will and buying your house and keeping you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Dubbo tend to have either a legal or accounting experience, 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 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 sizeable price for their expertise.

Should I speak 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 terrific option for letting you think through your situation when it comes to Bankruptcy. If you find yourself freaking out constantly, not sleeping, not eating or over-eating and thinking of money pressures regularly, then get some help.

There are also charities around Dubbo like Lifeline that offer a fantastic service. They will be a sounding board if you just need somebody to review with you what your options are. Don't let your financial trouble destroy your life - in the end it's just money.

If you like to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Dubbo on 1300 795 575, or visit our website: www.bankruptcyexpertsDubbo.com.au.

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

When people in Dubbo come to me wanting to discuss Bankruptcy, they are constantly loaded with questions. The internet has lots of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make things clearer. One of the most normal priorities is 'Will I lose my business if I declare bankruptcy?' The short answer is no. If you are an owner of a company any shape or size you can keep your business if you want to. In Dubbo, businesses that become insolvent have a few options like 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 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 a few important implications for directors of companies when it comes to Bankruptcy in Dubbo: A bankrupt can not be a director of a company, so if you have a pty ltd company you will need to resign as a director after 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. There are things you have to make known as a part of that but in a nutshell you can still run your business. 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 as a consequence you can not trade without that license, so make sure you are asking the appropriate questions when it comes to licenses and Bankruptcy in Dubbo.

But if your business is not impacted directly by such issues, then you'll have to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not 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 growing 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 situation you may think you need a liquidator for your business, and you might be right, but bear in mind that every liquidator is distinct and have their own motives. Liquidators make money from your liquidation - heaps of money - so just what advice do you think you will get?

When it comes to Bankruptcy, I think that giving generic advice in this area is likely perilous as it can have very considerable implications for directors and business owners. This is since 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 limitation to the size of the business you run when you are bankrupt. You can employ staff. You can constantly 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 too worried about what you can and can't do as a business owner, just get the appropriate advice ... If you would like to learn more about what to do, precisely where to turn and what questions to ask about Bankruptcy, then feel free to reach out to Bankruptcy Experts Dubbo on 1300 795 575, or visit our website: .bankruptcyexpertsDubbo.com.au.

Bankruptcy in Dubbo - Changes that help Small Business and Entrepreneurs

Do you recognize just how much Bankruptcy Dubbo is changing? The Australian Government in late 2015 recommended some inherent changes to the Bankruptcy Laws in Australia. Among the most significant of these is the length of time that a person is bankrupt for. Right now, there is a minimum amount of time that you must stay bankrupt, having said that, this 3 year period may in fact be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be somewhat important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 recommended that "the proposed changes to ease the burden of bankruptcy laws didn't go far enough and the government should adopt US-style laws to protect the family home".

These adjustments to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that giving protection to 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 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 surrounding this Bankruptcy issue in Dubbo that some make is that this modification will only support fraudulent behavior opening pandora's box so to speak for the unscrupulous to violation of the bankruptcy system. We have taken a look at the minimum, but on the other side of the matter, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has appeared in an unethical or fraudulent way, and there are no recommendations to change the penalties of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Dubbo, I have a decent share of practical experience when it concerns Bankruptcy. And having dealt with thousands of bankruptcy cases in Dubbo I have never uncovered someone abusing the system or acting in an irresponsible way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur suffer through the very complex task of bankruptcy, not once have I perceived they are happy about it. The standard small business owner or entrepreneur in Dubbo does not start out taking enormous financial risks with the intent to fail. The media really loves 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 best and brightest in Dubbo 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, employers keeping this country going.

There really is a fine line with just what the government is trying to do here, since they are aiming to balance helping people who have made decisions out of their control, and dissuading people from making missteps that land them in trouble and consequently an issue of Bankruptcy. However you also don't want to kill the experience and knowledge that business owners have. You undoubtedly 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 major 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 bankruptcy were scaled down because directors are distressed they'll be personally responsible in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I cannot imagine, that these alterations will be detrimental to Australia's economy, in fact 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 Dubbo not a day passes where I don't hear the tragic stories of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you want some assistance with your debts in Dubbo or are just considering Bankruptcy, feel free to give us a call here at Bankruptcy Experts Dubbo on 1300 795 575, or visit our website: bankruptcyexpertsdubbo.com.au

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

When it comes to Bankruptcy Dubbo, quite often people aren't aware that there are both voluntary, and involuntary bankruptcy - both have distinct methods and rules.

Involuntary bankruptcy happens when a person you owe money to involves the court to declare you bankrupt. Normally when you get one of these particular notices, you have normally 21 days to pay all the debt. If you don't, then the creditor returns to the court and requests the court to issue a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the documents in and after that 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 prevent it going to the next level. Other than the way you became bankrupt there is in fact no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're administered to in the same way.

However, when it concerns Bankruptcy for this, the stress, torment and fear that accompanies this method 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 someone bankrupt you. Once you are bankrupt, it's typically too late.

Voluntary Bankruptcy

However, 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 every person of course, but typically 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 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 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 very seriously damaged for that period of time - and all of this will impact how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is vicious. 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, bear in mind that bankruptcy is on your credit file for a total 7 years then its rubbed out completely.

So if your credit rating is a big detail 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 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 discuss 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. Compared to countries like the United States, our bankruptcy laws are extremely generous.

I don't claim to know why that is but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government feels the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which in turn costs the taxpayer anyway.

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

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to 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 readily available options. When getting some advice, don't forget that there are always alternatives when it comes to Bankruptcy in Dubbo, so do some study, and Good luck!

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

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

Bankruptcy Dubbo is a challenging process, and you have to make sure 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 need to know about going bankrupt is there is no limitation on how much you can earn. However, I will mention that your income is a serious consideration when working through when it comes to Bankruptcy.

The very first thing you need to understand 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 amount 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 look for a hardship variation that increases the threshold amount, if you have costs in Dubbo such as medical, child care, significant travel to and from work, or a situation where your partner used to work but is not able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into consideration in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you provide $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are more issues surrounding income and what is or isn't considered income - if you're not sure, it's recommended to get qualified advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances 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 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 provided that doesn't take you over your threshold income caps.

If you feel like when it comes to Bankruptcy, your issue is more complicated, then simply get specialist advice in Dubbo. I may sound like a broken record, but keep in mind that it's always a good idea to overcome these options prior to declaring bankruptcy, since once you have filed the paperwork it's far too late to change your mind.

If you intend to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Dubbo on 1300 795 575, or explore our website:bankruptcyexpertsDubbo.com.au.

Bankruptcy in Dubbo - Are you going to get bitten?

When people in Dubbo ask me about Bankruptcy, I let them know the timeless 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 vowed not to bite him in exchange for the ride. They went together only for the snake to ultimately attack the boy despite his assurance 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 Dubbo when it relates to Bankruptcy is a great deal like that little boy's experience, laden with risk and danger, and typically skewed for the benefit of the individual giving the advice. In many cases you'll get bitten except if you know what you've picked up before you move forward (avoid the rattlesnakes). I discovered the problem with receiving 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 small amount of money I wanted to invest. It was the early 1980s so interest rates were pretty high and investing your money was very profitable. I spent time researching varied investment options, and I went to visit a few financial advisors. It was clear that they had more money than I did: they had nice suits and plush offices, they all seemed to exude confidence and have all the answers. What hit me was that they all had a truly different strategy of what I should do. This puzzled me so much that it put me off the whole idea of picking any of them.

I'm sure currently you have read enough on the internet to be totally mixed up about Bankruptcy and precisely what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you could be grasping while you are trying to get to the bottom of your financial troubles in Dubbo. Basically, you need to try and comprehend what your overarching alternatives 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 Dubbo for your requirements. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may seem the go-to solution when you appear to be in trouble. But there is only so much aid they can give on this matter. There are absolutely specialist legal advisors in bankruptcy, but their expertise comes with a hefty price.

Another choice you may think about is your accountant - they are incredibly helpful and vital to the process 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 option? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you should figure out when it comes to Bankruptcy.

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Dubbo on 1300 795 575, or visit our website: bankruptcyexpertsDubbo.com.au.

Bankruptcy in Dubbo - Choices, Choice, Choices

When it comes down to Bankruptcy Dubbo, there are a bunch of options that we get given depending on who we are, who we speak to, and exactly what has happened. One of the most common confusion 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 Dubbo, a lot of the information you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can assure 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 helping you wrap each of your credit card and personal loans into just one neat and tidy package.

I hate to tell you this but these guys aren't doing it for free. Please don't misunderstand me: if you think your financial troubles in Dubbo might be solved by paying less interest, then go on and check out the possibilities. Even a small amount of interest saved over years rapidly adds up.

Typically I find if you read this blog you've most likely attempted to consolidate your debts already and come to the following realisations similar to these:

• Your credit rating is no good, and your credit file already has nonpayments on it so no one 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 bit of interest just won't make a lot of difference,.

• You've most likely arrived at the point where you've had more than enough, you're emotionally worn down, 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 to Bankruptcy in Dubbo, 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 company that advertises on TV. Basically this method resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these experts work out 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 complications with Bankruptcy - that is up until you realise that one of the difficulties with PIA's is that 75 % of the people you owe money to will have to come to an understanding the deal. If they do not, your plan is rejected or will need to be renegotiated.

Generally the people you owe money want all their money back as well as interest. Sometimes they'll opt 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 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 decideded upon with the people you owe money to. That applies whether you use a private company for this process or ITSA, the government body setup to administer to these PIAs.

When it comes to Bankruptcy and insolvency I've heard of creditors going 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 Dubbo aren't going to get that lucky!

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