Bankruptcy in Geelong - Who exactly do I speak to?

Should I consult with my accountant about Bankruptcy?

The answer seems clear doesn't it: if anybody knows your financial situation well in Geelong, 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 expertise lie in helping you save you money at tax time, reducing your tax liability and lodging your BAS.

Most accounting degrees will devote very little to no time on insolvency, 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 specialist, he will not know that a lot about the implications of Bankruptcy, I can assure you insolvency specialists know much about tax returns or BAS in. If you do manage to find an insolvency accounting firm in Geelong, they often tend to be large firms with very nice offices who charge accordingly.

Should I chat with my Solicitor about Bankruptcy?

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

Just like there are a handful of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you choose one you will pay a considerable 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 delightful option for helping you analyze your circumstance when it comes to Bankruptcy. If you find yourself stressing out constantly, not sleeping, not eating or over-eating and thinking of money pressures regularly, then get some help.

There are also charitable organizations around Geelong like Lifeline that offer an excellent service. They will be a sounding board if you just need a person to go over with you what your alternatives are. Don't let your financial trouble destroy your life - ultimately 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 Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsGeelong.com.au.

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

When people in Geelong come to me planning to talk about Bankruptcy, they are typically packed with questions. The internet is full of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make things more clear. One of the most normal concerns is 'Will I lose my business if I declare bankruptcy?' The brief answer is no. If you are an owner of a company any shape or size you can keep your business if you wish to. In Geelong, businesses that eventually become insolvent have a few options just like liquidation, voluntary administration and so on. It's people who go bankrupt not companies.

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 pertains to Bankruptcy in Geelong: 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 as soon as you're bankrupt.

A restriction that applies when you are generally bankrupt as a business owner is that you can be in your own business as a sole trader only. Generally there are things you need to disclose as a part of that but effectively 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 as a consequence you can not trade without that license, so make sure you are asking the right questions when it involves licenses and Bankruptcy in Geelong.

On the other hand if your business is not impacted directly by such issues, then you'll will 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 afterwards open the doors the next day like not a single thing had happened. There are laws in place to avoid what is called phoenix companies popping up out of the ashes of an old company.

Having said that, it's just an issue of speaking to the right people about Bankruptcy. In this circumstance you may believe you need a liquidator for your company, and you may be right, but keep that in mind every liquidator is unique and have their own motives. Liquidators earn 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 risky as it can have very substantial implications for directors and business owners. This is since it is just one of those cases where what the right guidance for one business owner is the incorrect 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 even though you are bankrupt. You can employ staff. You can continue to deal with your vendors 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 confused about what you can and can't do as a business owner, just get the best advice ... If you want to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Geelong on 1300 795 575, or visit our website: .bankruptcyexpertsGeelong.com.au.

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

When it comes to Bankruptcy Geelong, often people aren't aware that there may be both voluntary, and involuntary bankruptcy - each have unique approaches and rules.

Involuntary bankruptcy happens when somebody you owe money to applies to the court to declare you bankrupt. Generally when you get one of these types of notices, you have normally 21 days to pay all the debt. If you don't, then the creditor goes back to the court and asks 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 then afterwards you are bankrupt.

You can contest 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 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 process is incredible. If you think you are in all likelihood to be made bankrupt by someone, get some tips and act on that advice. Generally I've found it's always more ideal to know what you can and can't do before you have someone else bankrupt you. Once you are bankrupt, it's generally far too late.

Voluntary Bankruptcy

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

This question is not the very same for each person of course, but usually I find that one way you could work it out is to figure out how long it will take you to pay every one of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may assist 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 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 fail to remember 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 affect how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is improper. The punishment doesn't seem to amount to the crime in my book. So if you currently 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 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 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 talked about 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 go over their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this 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 with countries like the United States, our bankruptcy laws are quite generous.

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 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 every one 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 much 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 possible options. When getting some advice, keep in mind that there are always alternatives when it relates to Bankruptcy in Geelong, so do some groundwork, and Good luck!

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 consult with Bankruptcy Experts Geelong on 1300 795 575, or visit our website: bankruptcyexpertsGeelong.com.au.

Bankruptcy in Geelong - Will my income be affected if I go bankrupt?

Bankruptcy Geelong is a challenging process, and you have to make sure 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 mention that your income is a significant consideration when working through when it comes to Bankruptcy.

The 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 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 make an application for a hardship variation that increases the threshold amount, if you have costs in Geelong like medical, child care, serious travel to and from your job, or a situation where your partner used to work but is no longer able to add to the family income.

Some of the informative parts of Bankruptcy is that your employer will not be informed 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 give $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 much more issues involving income and what is or isn't considered income - if you're unsure, it's ideal to get skilled advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically practical 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 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 restrictions.

If you believe that when it comes to Bankruptcy, your case is more complex, then feel free to get qualified advice in Geelong. I may seem like a broken record, but keep in mind that it's always a good idea to work through these options before declaring bankruptcy, due to the fact that once you have filed the paperwork it's 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 Experts Geelong on 1300 795 575, or explore our website: bankruptcyexpertsGeelong.com.au.

Bankruptcy in Geelong - Choices, Choice, Choices

When it comes down to Bankruptcy Geelong, there are a ton of options that we get given depending upon who we are, who we approach, and just what has happened. Among 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 Geelong, a lot of the information and facts you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can guarantee you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for aiding you wrap each of your credit card and personal loans into a single neat and tidy bundle.

I hate to tell you this but these guys aren't going to be doing it free of charge. Please do not misunderstand me: if you think your financial issues in Geelong may possibly be solved by paying less interest, then go on and investigate the choices. Even a little amount of interest saved over years rapidly adds up.

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

• Your credit rating is no good, and your credit file definitely has nonpayments on it so no one will give 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 small amount of interest simply 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 drained, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail etc.

Personal Insolvency Agreements

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

Freedom is the main thing 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 has a meeting with the people you owe money to and they mediate a deal in your place. You can give a lump sum settlement figure or enter into a payment plan, or you can offer them assets as an alternative to cash. This might sound alright when it comes to the troubles with Bankruptcy - that is up until you discover that one of the problems with PIA's is that 75 % of the people you owe money to must agree on the deal. If they do not, your plan is rejected or will need to be renegotiated.

Generally the people you owe money prefer all their money back plus interest. Sometimes they'll settle for beneath the amount you owe them - it's generally a percentage of the debt - but allow me to 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 many cases 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 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 going 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 brilliant 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 Geelong aren't going to get that lucky!

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 Experts Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsGeelong.com.au.

Bankruptcy in Geelong - Are you going to get bitten?

When people in Geelong ask me about Bankruptcy, I let them know the simple 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 dies. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They journeyed together only for the snake to in the end attack the boy despite his promise not to do so. The snake's response was 'You knew what I was when you picked me up.'.

Obtaining the right financial advice in Geelong when it comes to Bankruptcy is a lot like that little boy's journey, fraught with risk and danger, and generally skewed for the benefit of the person supplying the advice. In many cases you'll get bitten except if 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 central to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was really profitable. I spent time 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 good suits and plush offices, they all seemed to exude confidence and have all the answers. What struck me was that they all had an extremely different strategy of what I should do. This confused me so much that it put me off the whole idea of picking any of them.

I'm sure by now you have read enough on the internet to be totally overwhelmed about Bankruptcy and exactly what to do. It would most likely be easier for me to help you understand the nature of the financial snakes you could be picking up while you are trying to get to the bottom of your financial troubles in Geelong. Basically, 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 the things you feel is best in Geelong for your requirements. Basically, you have 3 options for who to turn to.

The first option is a Solicitor - This may seem the go-to choice when you appear to be in trouble. But there 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 option you may think about is your accountant - they are incredibly useful and vital to the process 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 bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and virtually all you have to figure out 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 consult with Bankruptcy Experts Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsGeelong.com.au.

Bankruptcy in Geelong - Changes to help Small Business and Entrepreneurs.

5th February 2016 - By Charles Bosse

Do you appreciate how much Bankruptcy in Geelong is changing? The Australian Government at the end of 2015 submitted 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. Right now, there is a minimum amount of time that you must remain bankrupt, having said that, this 3 year period may very well be reduced down to just 12 months. So if you are inquiring 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 improvements to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that shielding 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 deterred 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 debate surrounding this Bankruptcy issue in Geelong that some come up with is that this modification will only encourage fraudulent behavior opening pandora's box so to speak for the unscrupulous to defilement of the bankruptcy system. We have taken a look at the minimum, but on the other side of the issue, The government is not suggesting 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 propositions to change the repercussions of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Geelong, I have a reasonable share of knowledge when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Geelong I have never uncovered someone abusing the system or acting in an immoral way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur suffer through the very challenging task of bankruptcy, not once have I believed they are happy about it. The average small business owner or entrepreneur in Geelong does not start out taking enormous financial risks with the intent to fail. The media loves citing the apparent abuse that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These recommended changes will be good for often the very best and brightest in Geelong 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, managers keeping this country going.

There is a fine line with the things the government is trying to do here, since they are attempting to balance helping individuals who have made decisions out of their control, and dissuading people from making missteps that land them in trouble and therefore an issue of Bankruptcy. However you also don't want to kill the experience and knowledge that business owners have. You certainly don't want to shatter people simply because they have had a sincere failure in a large or small start-up project that has not gone well.

At the big 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 insolvency were decreased because directors are worried they'll be personally liable in an insolvency arrangement if the new project doesn't work out.

The government's proposed 'safe haven' modifications 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 alterations will be damaging to Australia's economy, in reality 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 Geelong not a day passes where I don't hear the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you need some help with your debts in Geelong or are just thinking of Bankruptcy, feel free to give us a call here at Bankruptcy Experts Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsgeelong.com.au