Bankruptcy in Adelaide - 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 Adelaide, It's going to be your accountant. However, the short answer is a resounding No! It's not that your accountant won't have your best interests at heart when it comes to Bankruptcy, it's that his specialization lie in helping you save you money at tax time, lowering your tax liability and lodging your BAS.

Most accounting degrees will spend very little to no time on insolvency, it's generally carried out as a post graduate speciality program for those who wish to work in the field. Unless your accountant is an insolvency expert, he would not 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 Adelaide, they often tend to be large firms with very nice office spaces who charge accordingly.

Should I speak with my Solicitor about Bankruptcy?

No! You can talk to your solicitor in Adelaide but more than likely it won't do you much good. Solicitors are certainly good at doing 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 comes to Bankruptcy, the specialists in Adelaide normally have either a legal or accounting background, and the 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 few insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay a substantial price for their expertise.

Should I speak to a financial counsellor about Bankruptcy?

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

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

If you want to learn more about what to do, where to turn and what matters to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Advice  Adelaide on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Adelaide

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

When people in Adelaide come to me trying to speak about Bankruptcy, they are always full of 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 it more clear. One of the most usual priorities is 'Will I lose my business if I declare bankruptcy?' The concise answer is no. If you are a manager of a business any shape or size you can keep your business if you want to. In Adelaide, businesses that eventually are insolvent have a few options for instance, liquidation, voluntary administration and so on. It's individuals who go bankrupt not businesses.

Bankruptcy is a complicated area so get some qualified advice on this if you have a business. Generally speaking, the financial debts in a business and personal debts go together when a business owner goes bankrupt. There are some necessary implications for directors of companies when it pertains to Bankruptcy in Adelaide: 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 after you're bankrupt.

A constraint that applies when you are generally bankrupt as a business owner is that you may be in your very own business as a sole trader only. There are things you will want to reveal as an aspect of that but essentially you can still run your business. 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 therefore you can not trade without that license, so make sure you are asking the right questions when it concerns licenses and Bankruptcy in Adelaide.

On the other hand 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 acquire heaps of debt in your company, then go bankrupt and after that open the doors the next day like practically 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 a matter of consulting with the correct people about Bankruptcy. In this circumstance you may think you need a liquidator for your company, and you could be right, but remember that every liquidator is varied 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 consider that giving generic advice in this area is potentially risky as it can have very significant implications for directors and business owners. This is considering that it is 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 limit to the size of the business you run 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 comes to Bankruptcy, don't get overly uneasy about what you can and can't do as a business owner, just get the right advice ... If you want to learn more about what to do, precisely where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Advice  Adelaide on 1300 879 867, or visit our website: .bankruptcy-advice.com.au/Adelaide

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

When it comes to Bankruptcy Adelaide, often people aren't aware that there may be both voluntary, and involuntary bankruptcy - both of these have distinct methods and policies.

Involuntary bankruptcy arises when a person you owe money to applies to the court to declare you bankrupt. Usually when you get one of those 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 documents in and then you are bankrupt.

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

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this method is incredible. If you think you are prone 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 else bankrupt you. Once you are bankrupt, it's generally too late.

Voluntary Bankruptcy

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

This question is not the very same for everyone 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 each one 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 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 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 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 rubbed out completely.

So if your credit rating is a big element in trying to decide whether to enter into a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest 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 element most people are afraid of when they come to me to talk about 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 finished with no strings attached. Compared with countries like the United States, our bankruptcy laws are extremely generous.

I don't claim 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 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, remember that there are always possibilities when it relates to Bankruptcy in Adelaide, so do some study, and Good luck!

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

Bankruptcy in Adelaide - Will my income be influenced if I go bankrupt?

Bankruptcy Adelaide is a challenging process, and you ought to be sure you get the right insight. 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 very first thing you need to keep in mind about this area of Bankruptcy is 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 of money 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 make an application for a hardship variation that raises the threshold amount, if you have costs in Adelaide such as medical, child care, serious travel to and from your job, or a situation where your spouse used to work but is not able to add to the household income.

Some of the insightful parts of Bankruptcy is that your employer will not be told when you file for bankruptcy. Also, Child support is always taken into account 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 revised net income limit will be $55,332.10.

There are more issues encompassing income and what is or isn't thought of as income - if you're unsure, it's recommended 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 instances not an economically viable option.

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

If you think when it comes to Bankruptcy, your issue is more complex, then please get qualified advice in Adelaide. I may seem like a broken record, but remember that it's always a good idea to work through these options before declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

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

Bankruptcy in Adelaide - Choices, Choice, Choices

When it comes down to Bankruptcy Adelaide, there are a lot of options that we get given depending upon who we are, who we talk with, and what exactly has gone wrong. The most common confusion 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 Adelaide, most of the related information you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation company, I can guarantee you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for helping you wrap most of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but these guys aren't going to be doing it free of charge. Please don't misunderstand me: if you believe your financial problems in Adelaide can possibly be solved by paying less interest, then go ahead and consider the choices. Even a little amount of interest saved over years rapidly adds up.

Generally I find if you read this blog you've most likely tried to consolidate your debts already and come to the following realisations like these:

• Your credit rating is not good, and your credit file already has nonpayments 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 on a little bit of interest just won't make a great deal of difference,.
• You've likely arrived at the stage where you've had more than enough, you're mentally burnt out, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes down to Bankruptcy in Adelaide, what's the huge 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 organization that advertises on TV. Ultimately this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these guys arrange a deal in your place. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets rather than cash. This can sound fine when it comes to the problems with Bankruptcy - that is up until you realize that one of the difficulties with PIA's is that 75 % of the people you owe money to will have to agree on the deal. If they do not, your proposal is rejected or will need to be renegotiated.

Generally people you owe money prefer all their money back as well as interest. Sometimes they'll opt for beneath the amount you owe them - it's normally 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 in fact settle for.

Most of the time 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 come across creditors opting for less 80 % on rare occasions, but that usually only occurs with a public company entering into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of wise 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 Adelaide aren't going to get that lucky!

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

Bankruptcy in Adelaide - Are you going to get bitten?

When people in Adelaide 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 reluctant, but the rattlesnake pledged not to bite him in exchange for the ride. They travelled together only for the snake to ultimately bite the boy despite his promise not to do so. The snake's response was 'You knew what I was when you picked me up.

Receiving the right financial advice in Adelaide when it comes to Bankruptcy is a whole lot like that little boy's experience, tangled up with risk and danger, and normally skewed for the benefit of the person supplying the advice. Often 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 obtaining financial advice as a teenager, and it has been fundamental to Bankruptcy. I'd been working hard 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 a few years researching numerous investment options, and I went to visit a few financial advisors. It was transparent 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 solutions. What struck me was that they all had a truly different idea of what I should do. This puzzled me so much that it put me off the whole idea of choosing any of them.

I'm sure currently you have read enough on the internet to be totally bewildered about Bankruptcy and precisely what to do. It would probably be easier for me to help you learn about the nature of the financial snakes you could be picking up while you are attempting to get to the bottom of your financial issues in Adelaide. Essentially, you need to try and figure out what your overarching alternatives are, do your own research into where to proceed with your plan for Bankruptcy, and then approach the things you feel is best in Adelaide for your needs. Essentially, you have 3 options for who to turn to.

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

Another solution you may consider is your accountant - they are incredibly useful and vital to the process of running your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you any longer.

Your best bet? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you should understand 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 get in touch with Bankruptcy Advice  Adelaide on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Adelaide

Bankruptcy in Adelaide - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you understand just how much Bankruptcy in Adelaide is changing? The Australian Government at the end of 2015 proposed some underlying changes to the Bankruptcy Laws in Australia. 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 remain bankrupt, however, this 3 year period may in fact be reduced down to just 12 months. So if you are inquiring about Bankruptcy, this news may be pretty 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 updates 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 very important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws put off 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 about this Bankruptcy issue in Adelaide that some come up with is that this revision will only promote fraudulent behavior opening pandora's box so to speak for the unscrupulous to abuse of the bankruptcy system. We have looked at the minimum, but on the other side of the problem, The government is not submitting to change the maximum term of 8 years if it deems a bankrupt has acted in an unethical or fraudulent way, and there are no recommendations to change the consequences of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Adelaide, I have a fair share of knowledge when it concerns Bankruptcy. And having dealt with thousands of bankruptcy cases in Adelaide I have never uncovered someone abusing the system or acting in an immoral 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 complicated task of bankruptcy, not once have I noticed they are happy about it. The typical small business owner or entrepreneur in Adelaide does not start out taking enormous financial risks with the intent to fail. The media really loves citing the apparent abuse 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 Adelaide not get rejected 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 what exactly 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 miscalculations that land them in trouble and therefore an issue of Bankruptcy. However you likewise don't want to wipe out the experience and knowledge that business owners have. You surely don't want to shatter people simply because they have had an honest failure in a large or small start-up project that has not succeeded.

At the major end of town large well-known 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 lessened because directors are distressed they'll be personally responsible in an insolvency arrangement if the new endeavour doesn't work out.

The government's proposed '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 alterations will be detrimental to Australia's economy, actually these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is extensive. When it comes to Bankruptcy in Adelaide not a day goes by where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you want some assistance with your debts in Adelaide or are just thinking about Bankruptcy, don't hesitate to contact us here at Bankruptcy Advice Adelaide on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Adelaide