Bankruptcy in Perth - Who exactly do I talk to?

Should I talk with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody knows your financial situation well in Perth, 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 knowledge lie in helping you save you money at tax time, minimising your tax liability and lodging your BAS.

Most accounting degrees will put in hardly any to no time on bankruptcy, it's generally done as a post graduate specialty course 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 guarantee you insolvency specialists know much about tax returns or BAS in. If you do manage to find an insolvency accounting firm in Perth, they tend to be large firms with very nice office spaces who charge accordingly.

Should I speak with my Solicitor about Bankruptcy?

No! You can speak with your solicitor in Perth but more than likely it won't do you much good. Solicitors are really good at doing things lawyers do, like helping you do your Will and buying your house and trying to keep you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Perth generally 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 unless 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 with a financial counsellor about Bankruptcy?

Yes! There are lots of financial counselling services that can help you with this, they have no hidden agendas and they're a delightful option for really helping you analyze your situation when it comes to Bankruptcy. If you are stressing out constantly, not sleeping, not eating or over-eating and thinking of money pressures at all times, then get some help.

There are also charitable organizations around Perth like Lifeline that offer an excellent service. They will be a sounding board if you just need somebody to review with you what your choices are. Don't let your financial issue destroy your life - ultimately it's just money.

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

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

When people in Perth come to me looking to talk about Bankruptcy, they are typically full of questions. The internet has plenty of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make things clearer. One of the very most natural matters is 'Will I lose my business if I declare bankruptcy?' The short answer is no. If you are an owner of a business any shape or size you can keep your business if you want to. In Perth, businesses that end up being insolvent have a few options just like liquidation, voluntary administration and so on. It's people who go bankrupt not companies.

Bankruptcy is a complex area so get some professional advice on this if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are some crucial implications for directors of companies when it comes to Bankruptcy in Perth: A bankrupt can not be a director of a company, so if you have a pty ltd company you will need to retire as a director after you're bankrupt.

A restriction 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 have to make known as an aspect of that but basically you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. As an example, if you run a building company, your license will be suspended once you're bankrupt and therefore you can no longer trade without that license, so make sure you are asking the ideal questions when it comes to licenses and Bankruptcy in Perth.

Having said that if your business is not impacted directly by such issues, then you'll need to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not acquire heaps of debt in your business, then go bankrupt then open the doors the next day like almost nothing had happened. There are laws in place to stop what is called phoenix companies appearing out of the ashes of an old business.

Having said that, it's just a point of talking with the best people about Bankruptcy. Here in this circumstance you may believe you need a liquidator for your business, and you may be right, but bear in mind that every liquidator is different and have their own motives. Liquidators profit 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 damaging as it can have very considerable implications for directors and business owners. This is due to the fact 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 fundamentals however, that you may benefit from. There is no restriction to the size of the business you run when you are bankrupt. You can employ staff. You can continue to deal with your distributors under certain conditions, the main one being you will need to meet the payment terms agreed upon.

So when it comes to Bankruptcy, don't get extremely worried about what you can and can't do as a business owner, just get the best advice ... If you wish to learn 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 Perth on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Perth .

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

When it comes to Bankruptcy Perth, often people aren't aware that there may be both voluntary, and involuntary bankruptcy - the two have distinct methods and guidelines.

Involuntary bankruptcy takes place when a person you owe money to involves the court to declare you bankrupt. Normally when you get one of these kinds of notices, you have 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 appointed, and then you have 14 days to get the documentation in then afterwards you are bankrupt.

You can challenge a bankruptcy notice by going to court following 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 reality no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're managed to in the very same way.

However, when it concerns Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this method is incredible. If you think you are more than likely to be made bankrupt by someone, get some guidance 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 somebody bankrupt you. Once you are bankrupt, it's generally too late.

Voluntary Bankruptcy

Nevertheless, when it comes to Bankruptcy, sometimes there are moments 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 everybody of course, but ordinarily 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 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 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 phone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file very seriously damaged for that period of time - and all of this will impact how you need to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is not fair. The punishment doesn't seem to amount to the crime in my book. So if you actually have defaults on your credit report for 5 years, keep in mind that bankruptcy is on your credit file for a total 7 years then its rubbed out completely.

So if your credit rating is a big aspect in trying to decide whether to take part in a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest variation is that with a DA or PIA you repay the money and nevertheless have it on your file for 7 years.

Bankruptcy

I have talked about 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 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 over with no strings attached. Compared to countries like the United States, our bankruptcy laws are quite reasonable.

I don't pretend to know why that is but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government 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 your debts including ATO debts except for a few things:

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

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not 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, bear in mind that there are always alternatives when it concerns Bankruptcy in Perth, so do some research, and Good luck!

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

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

Bankruptcy Perth is a confusing process, and you have to make sure you get the right suggestions. 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 learn about this area of Bankruptcy is just how much you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand amount of money you earn per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can get a hardship variation that raises the threshold amount, if you have financial commitments in Perth such as medical, child care, substantial travel to and from your job, or a situation where your spouse used to work but is not able to support the household income.

Some of the insightful parts of Bankruptcy is that your employer will not be alerted 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 a lot more issues covering income and what is or isn't considered income - if you're not exactly sure, it's ideal to get skilled advice. The reason you must consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically practical option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can be taken by the ATO while you are bankrupt to contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund provided that doesn't take you over your threshold income limitations.

If you think when it comes to Bankruptcy, your situation is more challenging, then just get qualified advice in Perth. 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, since once you have filed the paperwork it's too late to change your mind.

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

Bankruptcy in Perth - Choices, Choice, Choices

When it comes down to Bankruptcy Perth, there are a great deal of options that we get given depending on who we are, who we talk with, and just what has happened. The most common trouble I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Perth, much of the facts you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can promise you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very basic way: charging you a fee for helping you wrap most of your credit card and personal loans into one neat and tidy bundle.

I hate to tell you this but these guys won't be doing it for free. Please don't misunderstand me: if you consider your financial issues in Perth might be fixed by paying less interest, then go on and look into the options. Even a small amount of interest saved over years quickly adds up.

Usually I find if you read this blog you've probably tried to consolidate your debts already and come to the following realisations such as these:

•       Your credit rating is no good, and your credit file definitely has defaults on it so nobody 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 a little bit of interest just won't make a lot of difference,.
•    You've likely reached the stage where you've had enough, you're emotionally worn down, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.

Personal Insolvency Agreements

So when it relates to Bankruptcy in Perth, 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 featuring the government trustee ITSA, and not a private business that advertises on TV. Basically this method is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys arrange a deal in your place. You can give a lump sum settlement figure or take part in a payment plan, or you can offer them assets as an alternative to cash. This may sound okay when it comes to the complications with Bankruptcy - that is until you discover that one of the problems with PIA's is that 75 % of the people you owe money to will have to come to an understanding the deal. If they don't, your plan is denied or will need to be renegotiated.

Generally people you owe money really want all their money back plus interest. Sometimes they'll go for under the amount you owe them - it's typically 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 actually settle for.

In most 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 heard of creditors choosing 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 Perth 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 call Bankruptcy Advice Perth on 1300 879 867, or visit our website: bankruptcy-advice.com.au/Perth.

Bankruptcy in Perth - Are you going to get bitten?

When people in Perth ask me about Bankruptcy, I let them know the timeless Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to 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 eventually attack the boy despite his vow not to do so. The snake's reply was 'You knew what I was when you picked me up.

Receiving the right financial advice in Perth when it comes to Bankruptcy is a lot like that little boy's encounter, tangled up with risk and danger, and usually skewed for the benefit of the person providing 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 getting financial advice as a teenager, and it has been key to Bankruptcy. I'd been working hard for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were quite high and investing your money was rather profitable. I spent a long time researching diverse investment options, and I went to visit a few financial advisors. It was obvious that they had more money than I did: they had great suits and plush offices, they all seemed to exude confidence and have all the solutions. What hit me was that they all had a really different strategy of what I should do. This confused me a lot that it put me off the whole idea of going with any of them.

I'm sure by now you have read enough on the internet to be totally puzzled about Bankruptcy and just what to do. It would probably be easier for me to help you comprehend the nature of the financial snakes you might be grasping while you are attempting to get to the bottom of your financial concerns in Perth. In essence, you need to try and comprehend what your overarching choices are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Perth for your needs. 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 really is only just so much assistance they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their knowledge comes with a hefty price.

Another possibility you may think of is your accountant - they are incredibly useful and vital to the process of operating 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 talk about debt consolidation, personal insolvency agreements, and pretty much all you need to know when it comes to Bankruptcy.

If you want to learn 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 Perth on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Perth .

Bankruptcy in Perth - Changes to aid Small Business and Entrepreneurs.

5th February 2016 - By Charles Bosse

Do you have an idea of just how much Bankruptcy in Perth is changing? The Australian Government in late 2015 moved for some innate changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. At the moment, there is a minimum amount of time that you must stay bankrupt, but, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be somewhat important to you.

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

These shifts 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 necessary 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 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 Behavior.

The issue surrounding this Bankruptcy issue in Perth that some make is that this shift will only strengthen fraudulent behavior opening pandora's box so to speak for the unscrupulous to defilement of the bankruptcy system. We have looked into the minimum, but on the other side of the matter, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has appeared in an unethical or fraudulent way, and there are no proposals to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Perth, I have a reasonable share of experience when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Perth I have never uncovered someone abusing the system or acting in a careless way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur look at the very complicated task of bankruptcy, not once have I felt they are happy about it. The normal small business owner or entrepreneur in Perth does not start out taking enormous financial risks with the intent to fail. The media prefers citing the apparent injustice 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 Perth 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, employers keeping this country going.

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

At the big end of town large developed 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 scaled down because directors are distressed they'll be personally liable in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' modifications 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 revisions 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 industry because the emotional cost of bankruptcy is substantial. When it comes to Bankruptcy in Perth not a day goes by where I don't find out 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 really need some assistance with your debts in Perth or are just considering Bankruptcy, feel free to call us here at Bankruptcy Advice Perth on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/perth