Going Bankrupt Hervey Bay, What is the Deal with Debts?

Just what Debts are erased if I go Bankrupt?

The quick answer is that when it comes to Going Bankrupt most debts are wiped, and I have added a compendium below for you to look at.

But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) together with any debts arising from uninsured Motor-vehicle claims and educational debts including HECS or FEE-HELP. These debts are not eliminated when you file for bankruptcy.

What about Secured Debts?

A secured debt is a car loan or a home loan; it is a debt that has some definite security attached to it. So for example if you buy a new car for $40,000 dollars the security for this car is the actual car itself.

So, can my secured debts be removed if I file for bankruptcy?

Yes. If you have a car loan for $40,000 you can have that debt wiped out if you simply return the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts might be wiped but the asset must be sold or returned. This is just one part that, when it comes to Going Bankrupt, it is important to get professional assistance – like that provided at Bankruptcy Hervey Bay.

What about my Tax Debts with the ATO can they be erased If I go bankrupt?

Yes they can, both business and personal debts owing to the ATO can be removed with bankruptcy. If you have a business with any kind of debts receive some advice because it is not always so straightforward. Feel free to call us right here over at Bankruptcy Hervey Bay if you have any questions on 1300 795 575. Or feel free to head to our website: www. bankruptcyexpertsherveybay.com.au

What about my business or Company debts?

Sometimes when it comes to Going Bankrupt we can really help you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Generally you may need to liquidate a company to deal with the debt this way. And when it comes to Going Bankrupt, it can be a complicated area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Hervey Bay we specialise in business and personal debts so call us here at Bankruptcy Hervey Bay if you have any questions regarding Going Bankrupt on 1300 795 575. Or feel free to explore our website: bankruptcyexpertsherveybay.com.au

Going Bankrupt, Will I lose my Superannuation?

Going Bankrupt Australia can be complicated and confusing. A question we typically get asked here at Bankruptcy Experts Hervey Bay is ‘what happens to my super if I declare Bankruptcy’? The solution for most is simple, if your super is usually in a regulated fund or industry fund like Sunsuper or Host Plus then virtually nothing happens; your super is 100 % safe when it involves Going Bankrupt.

What if I have a Self Managed Super Fund?

This is a growing concern, take into consideration the increasing number of members of Self-Managed Super Funds (“SMSFs”) in recent years; the ATO tells us it has expanded Australia-wide from 758,589 in 2009 to 1,011,689 in 2014. So what happens to these Superfunds when it comes down to Going Bankrupt?

Remember Bankruptcy Experts Hervey Bay is not indicating this post is the complete story, if you have any questions feel free to call us on 1300 795 575. Whether or not you call us or someone else it does not matter, just please don’t walk into bankruptcy blind when it comes to your SMSF actually we encourage you obtain both legal and financial advice before proceeding with any of the actions recommended in this article.

What is a Disqualified Person?

First and foremost, if you are taking into account Going Bankrupt, you can not be a part of a SMSF. Why? Because if you are coping with bankruptcy, you will be identified as a ‘disqualified person’. And a disqualified individual cannot operate as an Individual Trustee. This poses a problem due to the fact that usually most of the SMSFs are just 2 people, which means each of these members need to also be the individual trustees. The position of trustee poses a lot of legal rules, and if you are in this role I would highly recommend you to end up being familiar with them all– including the fact that you can not ‘know or suspect’ that one of you are bankrupt. So you can notice how an individual bankruptcy can be rather detrimental to a SMSF and as you can assume the process of Going Bankrupt for a SMSF is rather convoluted.

How long do I have so as to restructure my SMSF Fund once I’m bankrupt?

So what happens if one of the members of an SMSF does enter Bankruptcy?

For starters, the SMSF will have to be reorganized. This means that you will want to consider your extensive structure and ensure it is meeting the basic conditions, including having a new trustee that is not encountering issues with Bankruptcy. The Australian Tax office will give you a 6 month ‘grace period’ to get this done before you face penalties. And bear in mind, sometimes the best plan would be to simply roll the fund into an industry or corporate fund.

Beyond these large scale reorganizing issues, there is a lot of paperwork to deal with too, and you need to be constantly keeping the ATO informed of what is happening. This suggests you ought to let them know that you have a bankruptcy concern with your current trustee, that they are being removed as soon as possible know who the new trustee/director is. The Bankrupt will also need to inform the ATO using the form NAT 3036 (Found on the ATO website) and they will need to also notify ASIC of their resignation.

Through that 6 month period you will need to remove the Bankrupt from the SMSF– including their property and assets. Remember if you are unsure call Bankruptcy Experts Hervey Bay for some free advice on 1300 795 575.

What if I have a single member fund?

If you are a single member fund, then you will need to appoint a new director, and it will then be their duty to oversee the sale and relocation of assets into a managed fund. If there are two or more members, than the bankrupt member will need to resign and the other member will take away the property and halve the proceeds. They would then have to decide if they wish to remain as a single member SMSF, or if they would like to roll all of it into a managed fund. If both members are entering bankruptcy, then they will need to sell all assets immediately and transfer the liquid assets to the managed fund.

From this you can notice how when it comes to Going Bankrupt, even when one single member is running into issues, it can affect the very existence of an SMSF. If you are at the moment facing this matter yourself, or with a partner in a SMSF, please seek financial advice to make sure you are satisfying the ATO requirements.

A simple solution …

As I recommended earlier, a simple solution to your SMSF problem is to put your super back into a normal regulated managed fund prior to bankruptcy and save yourself all the problems outlined above. Going Bankrupt is never easy, but receiving proper advice is the best 1st step. If you want to discuss your possibilities further, contact us at Bankruptcy Experts Hervey Bay or visit our website: bankruptcyexpertsHervey Bay.com.au or just give us a call on 1300 795 575.

Going Bankrupt in Hervey Bay – Will I lose my house if I go bankrupt?

Going Bankrupt Hervey Bay is a difficult process, but I know from meeting with thousands facing the possibility of bankruptcy over the years, that not much worries people more than the thought of losing the family home or apartment. Almost everyone is on an emotional level connected to their home – it’s where the kids have grown up, it’s where you appreciate life on a day to day basis.

Will you lose your house if you go bankrupt? The solution is a resounding maybe. (not very helpful, I know) People typically assume it’s an inevitable consequence and a part of Going Bankrupt, and as a result push themselves to the brink of insanity to not lose the family home. But when it comes to the whole process of Going Bankrupt, a key benefit of Debt Agreements and Personal Insolvency Agreements is you can keep your house. The reason is simple: you’ve agreed to pay back the debt you are in.

So how is it possible to keep my Hervey Bay house, you ask? It’s easier if I explain the basic principle behind the Going Bankrupt process as administered by the trustee, then you’ll have a more clear idea.

The duty of the bankruptcy trustee is to firstly abide by the regulation of the bankruptcy act 1966 (it’s a very dry read about 600 pages if you are intrigued).

Within that regulatory framework, the trustee is to help recover monies owed to your creditors, that is carried out in a bunch of various ways but it mainly comes down to income and assets. The trustees role is to collect payments over your income threshold. The further role is to sell off any assets that can contribute to fixing your debts.

What this seems is that yes the trustee will sell your house right? Not normally. The only reason the trustee will sell off any asset including your house is to get money to pay back your debts. If there is no equity in your house then it’s pointless to sell your home. This is happening increasingly since the GFC as house prices in many locations have been heading south so what you paid 4 years ago may not always reflect the price today.

A quick word of advice here if you have a house in Hervey Bay and are looking at Going Bankrupt: get an expert to help you through this process, there are a number of variables in these scenarios that need to be considered.

You might wonder, why would the bank want bankrupt customers? wouldn’t they need to sell your house and not take the risk? The bank that has kindly lent you the money for your house is generating good money every month in interest out of you, month in month out, just as long as you keep up to date with your repayments then the bank desires you in there at all costs. Ultimately however it’s not the bank’s call if the trustee decides that there is a lot of equity in your house the trustee will force you and the bank to sell the house.

When you file for bankruptcy you are asked to put down the value of your house and the quantity you owe on the house. A tip if you are trying to work out the value of your house: use a registered valuer as this will offer you peace of mind, don’t use your neighbours’ gut feel suggestions or a real estate agents advice to get to this figure. When you get a valuer out to your property, make sure you tell the valuer to value the property for a quick sale, see to it you mow the lawn and don’t leave the kitchen in a mess also.

Valuers used to give two valuations: one for a quick sale and one for a well marketed non time delicate sale. These days that’s not the case, but if you meet them and tell them you need to sell the house in the next 30 days you may sway the result. The idea is that you want a life-like sell now figure.

There are two main reasons this valuation technique is critical to you: one you will certainly have peace of mind ascertaining the market value of your house, and afterwards you can easily build your equity position. Second of all, your property may be worth much more than you thought. Get some guidance before carrying this out. The number of times I’ve seen clients that have sold their family home of 20 years simply to find out I could of helped them keep it; unfortunately this happens all too often

When it concerns Going Bankrupt and houses, another major consideration is ownership, in many cases houses are bought in joint names. To puts it simply a couple may be a house 50/50 using both incomes to make the payments. If one party declares bankruptcy and the other party doesn’t, the equity is only factored on the 50 % of the property.

When it relates to Going Bankrupt, this is just one of probably numerous scenarios that are likely when it comes down to the family home. Bear in mind the non-bankrupt party can buy the bankrupt’s part of the house in bankruptcy also. I have to repeat this but get some information on this area of Going Bankrupt because it is very tricky and every case is different.

If you want to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to call Bankruptcy Experts Hervey Bay on 1300 795 575, or visit our website: bankruptcyexpertsherveybay.com.au.

Going Bankrupt in Hervey Bay – Who exactly do I speak to?

Should I speak with my accountant about Going Bankrupt?

The answer seems obvious doesn’t it: if anybody knows your financial situation well in Hervey Bay, It’s going to be your accountant. However, the short answer is a definite No! It’s not that your accountant doesn’t have your best interests at heart when it comes to Going Bankrupt, it’s that his expertise lie in helping you save you money at tax time, lowering your tax liability and lodging your BAS.

Most accounting degrees will put in very little to no time on bankruptcy, it’s generally done as a post graduate speciality program for those who want to work in the field. Unless your accountant is an insolvency expert, he won’t know that a lot about the effects of Going Bankrupt, 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 Hervey Bay, they tend to be large firms with very nice office spaces who charge accordingly.

Should I speak to my Solicitor about Going Bankrupt?

No! You can talk with your solicitor in Hervey Bay but more than likely it won’t do you much good. Solicitors are really good at carrying out 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 Going Bankrupt, the specialists in Hervey Bay often have either a legal or accounting experience, and the reason for that is simply that you can’t enrol in the post graduate study to become a qualified insolvency practitioner except if you have a law or accounting degree.

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

Should I speak to a financial counsellor about Going Bankrupt?

Yes! There are lots of financial counselling services to help you through this, they have no hidden agendas and they’re an excellent option for helping you think through your situation when it comes to Going Bankrupt. If you are 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 Hervey Bay like Lifeline that offer a remarkable service. They will be a sounding board if you just need somebody to discuss with you what your alternatives are. Don’t let your financial issue destroy your life – ultimately it’s just money.

If you wish to learn more about what to do, where to turn and what points to ask about Going Bankrupt, then feel free to get in touch with Bankruptcy Hervey Bay on 1300 795 575, or visit our website: bankruptcyexpertsherveybay.com.au.

Going Bankrupt in Hervey Bay – Will I lose my job if I go bankrupt?

Almost everyone experiencing Going Bankrupt Hervey Bay has this worry about their job, and the answer to the question is ‘maybe’. The dilemma with some professions isn’t that you cannot do the job any longer, it’s more a concern of professional bodies or associations that view bankruptcy in a dim light and can make things tough for you.

When it concerns Going Bankrupt and employment in Hervey Bay, what I would say is that you do your very own preparation here, do the research and go through that process first before declaring bankruptcy considering that may help you decide. Check if your job is on the list below. If it is, I ‘d get in touch with them personally and explain your situation. Some organizations won’t have a concern with your bankruptcy provided that it wasn’t accompanied by shady or questionable behaviour.

If you are affected by this part of Going Bankrupt and licences, In most cases you won’t lose your Licence permanently; it just gets suspended for the 3 years of your bankruptcy. If your occupation happens to be on the checklist and you’ve gotten in touch with them but they won’t budge, then I ‘d recommend you seek some experienced advice. This may be one of those rare occasions when I ‘d suggest using a Debt Agreement or a Personal Insolvency Agreement.

Remember most of the time you don’t need to exit the industry you are employed in; you just have to work under another’s Licence for a time. In the building industry this is especially relevant: if you’re an electrician for instance, there is nothing stopping you working with another electrician in Hervey Bay under their Licence.

Please check out the table below, it handles the license and business side of Going Bankrupt. Its arranged on a state by state premise, and you’ll discover that there’s a listing called “Operating a business.” Please don’t worry if you run your own company. Among the limitations of bankruptcy is you can’t be a director of a company, but all that this actually means is that you need to restructure your business.

Simply for your peace of mind I’ll tell you now that you can still own and run your business as a sole trader. There are no limits: you can hire staff and turn over any amount of money. Normally people who run their own business have debts that are business related and it can end up being very complicated, so it’s best to obtain some expert advice instead of going it alone.

If you would like to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to talk to Bankruptcy Experts Hervey Bay on 1300 795 575, or visit our website:. bankruptcyexpertsHervey Bay.com.au

Going Bankrupt in Hervey Bay – Will I lose my business if I go bankrupt?

When people in Hervey Bay come to me planning to talk about Going Bankrupt, they are usually loaded 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 it more clear. One of the very most general problems is ‘Will I lose my business if I declare bankruptcy?’ The brief answer is no. If you are an owner of a business any shape or size you can keep your business if you want to. In Hervey Bay, businesses that eventually become insolvent have a few options just like liquidation, voluntary administration and so on. It’s people who go bankrupt not businesses.

Going Bankrupt 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 declares bankruptcy. There are several necessary implications for directors of companies when it comes to Going Bankrupt in Hervey Bay: A bankrupt can not be a director of a company, so if you have a pty ltd company you will likely need to resign as a director after you’re bankrupt.

A constraint 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 will need to reveal as a part of that but generally you can still run your company. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. For instance, 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 involves licenses and Going Bankrupt in Hervey Bay.

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 rack up heaps of debt in your company, then go bankrupt and after that open the doors the next day like almost nothing had happened. There are laws in place to avoid what is called phoenix companies growing out of the ashes of an old company.

Having said that, it’s just an issue of talking with the best people about Going Bankrupt. In this circumstance you may believe you need a liquidator for your company, and you may be right, but keep in mind that 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 Going Bankrupt, I consider that giving generic advice in this area is possibly damaging as it can have very significant implications for directors and business owners. This is considering that it is just one of those cases where what the right advice for one business owner is the incorrect advice for the other. There are some basics 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 Going Bankrupt, don’t get overly upset about what you can and can’t do as a business owner, just get the right advice … If you wish to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to consult Bankruptcy Hervey Bay on 1300 795 575, or visit our website: bankruptcyexpertsherveybay.com.au.

Going Bankrupt in Hervey Bay – does it matter if it is voluntary?

When it comes to Going Bankrupt Hervey Bay, often people aren’t aware that there are both voluntary, and involuntary bankruptcy – both have unique methods and rules.

Involuntary bankruptcy takes place when someone you owe money to applies to the court to declare you bankrupt. Generally when you get one of those notices, you have normally 21 days to pay all the debt. If you do not, then the creditor returns to the court and asks the court to issue a sequestration order that declares you bankrupt. A trustee is appointed, 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 right 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 comes to Going Bankrupt 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 guidance and act on that advice. Generally I’ve found it’s always far better to know what you can and can’t do before you have someone bankrupt you. Once you are bankrupt, it’s generally far too late.

Voluntary Bankruptcy

Nevertheless, when it comes to Going Bankrupt, sometimes there are times that it is the most ideal option. So you may want to ask yourself, ‘when should I consider voluntary Bankruptcy?’.

This question is not the very same for every person of course, but commonly I find that one way you could work it out is to figure out just how long it will take you to pay each 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 Going Bankrupt.

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 forget to pay your $30 phone bill for 6 months more, it’s very likely the telephone 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 truly damaged for that period of time – and all of this will affect how you have to approach Going Bankrupt.

In many ways, the ease with which companies/credit providers can default your credit file is unfair. The punishment doesn’t seem to equate to 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 erased completely.

So if your credit rating is a big issue 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 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 more people are afraid of when they come to me to review their financial situation and Going Bankrupt. The other side of crime and punishment equation is bankruptcy, and in this specific country the provisions are very generous: you can go bankrupt owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared with countries like the United States, our bankruptcy laws are quite generous.

I don’t pretend 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 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 Going Bankrupt in general but the purpose of this blog was to help you decide between a few available options. When getting some advice, bear in mind that there are always options when it relates to Going Bankrupt in Hervey Bay, so do some study, and Good luck!

If you wish to learn more about exactly what to do, where to turn and what questions to ask about Going Bankrupt, then don’t hesitate to speak to Fresh Start Solutions Hervey Bay on 1300 818 575, or visit our website: bankruptcyexpertsHerveyBay.com.au

Bankruptcy Advice in Hervey Bay – Will my income be altered if I go bankrupt?

Bankruptcy Advice Hervey Bay is a intricate process, and you ought 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 very first thing you need to know about going bankrupt is there is no regulation on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy Advice.

The very first thing you need to understand about this area of Bankruptcy Advice 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 of money you earn annually. 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 expenses in Hervey Bay like medical, child care, significant travel to and from your job, 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 Advice is that your employer will not be alerted 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 thought about, 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 a lot more issues involving income and what is or isn’t regarded as income – if you’re not exactly sure, it’s best to get skilled advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund may be taken by the ATO while you are bankrupt to add 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 feel like when it comes to Bankruptcy Advice, your case is more intricate, then simply get expert advice in Hervey Bay. I may seem like a broken record, but bear in mind that it’s always a good idea to overcome 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 Advice, then feel free to contact Bankruptcy Experts Hervey Bay on 1300 795 575, or explore our website: bankruptcyexpertsHerveyBay.com.au.

Going Bankrupt in Hervey Bay – Choices, Choice, Choices

When it comes to Going Bankrupt in Hervey Bay, there are a load of choices that we get given depending on who we are, who we approach, and what exactly has happened. Among the most common confusion I see with Going Bankrupt is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Going Bankrupt in Hervey Bay, a lot of the information you receive on this issue will reflect the interests of the advice giver. That is why, if you call a debt consolidation firm, 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 straightforward way: charging you a fee for aiding you wrap all of your credit card and personal loans into just one neat and tidy package.

I hate to tell you this but they aren’t going to be doing it free of charge. Please do not misunderstand me: if you believe your financial troubles in Hervey Bay can be fixed by paying less interest, then go ahead and look into the possibilities. Even a tiny amount of interest saved over years quickly adds up.

Usually I find if you read this blog you’ve undoubtedly 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 give you a loan, consolidated or otherwise,.
• By the time you work all of it out, you’re so far down a hole that saving on a bit of interest simply won’t make a great deal of difference,.
• You’ve undoubtedly reached the stage where you’ve had enough, you’re emotionally fatigued, 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 Going Bankrupt in Hervey Bay, what’s the difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability 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 company that advertises on TV. Basically this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts work out a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets as an alternative to cash. This may sound acceptable when it comes to the issues with Going Bankrupt – that is up until you discover that one of the difficulties with PIA’s is that 75 % of the people you owe money to will need to agree on the deal. If they do not, your proposal is denied or will need to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they’ll go for under the amount you owe them – it’s generally a percentage of the debt – but allow me to stress this part: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will 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 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 Going Bankrupt and insolvency I’ve heard of creditors choosing less 80 % on rare occasions, but that usually only occurs with a public company going into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of clever 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 Hervey Bay aren’t going to get that lucky!

If you want to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to get in touch with Bankruptcy Advice Hervey Bay on 1300 879 867, or visit our website:bankruptcyexpertsherveybay.com.au.

Going Bankrupt in Hervey Bay – Changes that can help Small Business and Entrepreneurs

Do you have knowledge of just how much Going Bankrupt in Hervey Bay is changing? The Australian Government in late 2015 suggested some inherent changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. At this time, there is a minimum amount of time that you must stay bankrupt; however, 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 pretty 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 updates to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie went on to say in the Financial Review that guarding family assets was necessary 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 controversy about this Going Bankrupt issue in Hervey Bay that some come up with is that this modification will only push fraudulent behaviour opening Pandora’s box so to speak for the unscrupulous to exploitation of the bankruptcy system. We have looked into the minimum, but on the other side of the matter, 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 effects of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Hervey Bay, I have a decent share of practical experience when it concerns Going Bankrupt. And having dealt with thousands of bankruptcy cases in Hervey Bay I have never caught someone abusing the system or acting in an irresponsible way as to exploit the insolvency laws in Australia. When it comes to Going Bankrupt, each week I help a small business owner or entrepreneur look at the very complex task of bankruptcy, not once have I felt they are happy about it. The standard small business owner or entrepreneur in Hervey Bay does not start out taking enormous financial risks with the intention 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 proposed changes will be good for often the best and brightest in Hervey Bay not get tossed out of the game financially for financial decisions often outside of their control. Most small business owners I help with Going Bankrupt, are hardworking, tax paying, employers keeping this country going.

There certainly is a fine line with what exactly the government is trying to do here, because they are trying to balance helping individuals who have made decisions out of their control, and deterring people from making blunders that land them in trouble and as a result an issue of Going Bankrupt. However you likewise don’t want to get rid of the experience and knowledge that business owners have. You definitely don’t want to smash people simply because they have had an honest failure in a large or small start-up venture that has not gone well.

At the big end of town large well established companies have long been criticised for their failure to innovate – let’s face it they would be more likely to do so if the risks of insolvency were reduced because directors are worried they’ll be personally accountable in an insolvency arrangement if the new venture 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 changes for Going Bankrupt. I can not imagine, that these alterations will be harmful to Australia’s economy, indeed 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 Going Bankrupt in Hervey Bay not a day goes by where I don’t find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Going Bankrupt helps save lives, and it could save yours. If you are in need of some assistance with your debts in Hervey Bay or are just thinking of Going Bankrupt, feel free to contact us here at Hervey Bay Bankruptcy Centre on 1300 795 575, or visit our website:WWW. bankruptcyexpertsherveybay.com.au