Bankruptcy in Mackay - Who exactly do I talk to?

Should I speak with my accountant about Bankruptcy?

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

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

Should I speak to my Solicitor about Bankruptcy?

No! You can talk to your solicitor in Mackay 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 comes to Bankruptcy, the specialists in Mackay usually have either a legal or accounting background, and the main reason for that is simply that you can't start in the post graduate study to become a qualified insolvency practitioner except if you have a law or accounting degree.

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

Should I speak to a financial counsellor about Bankruptcy?

Yes! There are plenty of financial counselling services to help you through this, they have no hidden agendas and they're a great option for really helping you analyze your situation when it comes to Bankruptcy. If you end up stressing 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 Mackay like Lifeline that offer a wonderful 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 wish to learn more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Mackay on 1300 795 575, or visit our website: www.bankruptcyexpertsMackay.com.au.

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

When people in Mackay come to me hoping to discuss Bankruptcy, they are constantly loaded with questions. The internet has lots of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make things more clear. One of the most universal worries is 'Will I lose my business if I declare bankruptcy?' The quick answer is no. If you are a manager of a company any shape or size you can maintain your business if you want to. In Mackay, businesses that become insolvent have a few options such as liquidation, voluntary administration and so on. It's individuals who go bankrupt not businesses.

Bankruptcy is a complicated area so get some skilled 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 some necessary implications for directors of companies when it comes to Bankruptcy in Mackay: A bankrupt can not be a director of a company, so if you have a pty ltd company you will definitely need to retire as a director once you're bankrupt

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A constraint that applies when you are bankrupt as a business owner is that you may be in your very own business as a sole trader only. Generally there are things you will need to reveal as a part of that but in a nutshell 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 consequently you can not trade without that license, so make sure you are asking the ideal questions when it involves licenses and Bankruptcy in Mackay.

But 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 and after that open the doors the next day like virtually nothing had happened. There are laws in place to prevent what is called phoenix companies appearing out of the ashes of an old company.

Having said that, it's just an issue of speaking to the correct people about Bankruptcy. Here in this circumstance you may believe you need a liquidator for your company, and you could be right, but bear in mind that every liquidator is varied and have their own motives. Liquidators earn money from your liquidation - heaps of money - so exactly 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 significant 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 basics however, that you may benefit from. There is no limit 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 concerns Bankruptcy, don't get extremely upset about what you can and can't do as a business owner, just get the best advice ... If you need to learn more about what to do, precisely where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Mackay on 1300 795 575, or visit our website: .bankruptcyexpertsMackay.com.au.

Bankruptcy in Mackay - Changes to aid Small Business and Entrepreneurs

Do you recognize how much Bankruptcy Mackay is changing? The Australian Government at the end of 2015 put forward some progressive 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. At the moment, there is a minimum amount of time that you must stay bankrupt, but, this 3 year period may in fact be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be considerably 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 essential because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws prevented 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 debate surrounding this Bankruptcy issue in Mackay that some make is that this revision will only motivate fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to exploitation of the bankruptcy system. We have looked at the minimum, but on the other side of the matter, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has appeared in an unethical or fraudulent way, and there are no suggestions to change the effects of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Mackay, I have a fair share of experience when it comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Mackay I have never uncovered someone abusing the system or acting in an irresponsible 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 difficult task of bankruptcy, not once have I thought they are happy about it. The typical small business owner or entrepreneur in Mackay 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 proposed changes will be good for often the best and brightest in Mackay not get tossed out of the game financially for financial decisions often outside of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, managers keeping this country going.

There is a fine line with exactly 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 deterring people from making miscalculations that land them in trouble and consequently an issue of Bankruptcy. However you likewise don't want to destroy the experience and knowledge that business owners have. You undoubtedly don't want to shatter people simply because they have had an honest failure in a large or small start-up enterprise that has not panned out.

At the major end of town large established companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of insolvency were decreased because directors are troubled they'll be personally responsible 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 updates for Bankruptcy. I can not imagine, that these changes will be destructive to Australia's economy, in reality 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 extensive. When it comes to Bankruptcy in Mackay not a day passes where I don't find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you are in need of some assistance with your debts in Mackay or are just thinking of Bankruptcy, don't hesitate to contact us here at Bankruptcy Experts Mackay on 1300 795 575, or visit our website:bankruptcyexpertsmackay.com.au

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

When it comes to Bankruptcy Mackay, commonly people aren't aware that there are both voluntary, and involuntary bankruptcy - each have distinct approaches and guidelines.

Involuntary bankruptcy arises when a person you owe money to involves the court to declare you bankrupt. Commonly when you get one of these particular notices, you have 21 days to pay all the debt. If you don't, then the creditor returns to the court and asks the court to provide a sequestration order that declares you bankrupt. A trustee is assigned, and then you have 14 days to get the documents in and then you are bankrupt.

You can challenge a bankruptcy notice by going to court following the 21 days have expired and put your case forward, to avoid it going to the next level. Other than the way you became bankrupt there is in fact no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're overseen to in the very same way.

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this process is incredible. If you think you are prone to be made bankrupt by someone, get some assistance 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 usually too late.

Voluntary Bankruptcy

Nevertheless, when it comes to Bankruptcy, sometimes there are moments 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 everyone of course, but typically I find that one way you could work it out is to figure out just how long it will take you to pay every one of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may serve to 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 level 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 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 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 unjustifiable. The punishment doesn't seem to equal 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 element 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 difference is that with a DA or PIA you pay back the money and nevertheless have it on your file for 7 years.

Bankruptcy

I have stated the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the part most people are afraid of when they come to me to talk about their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this specific country the provisions 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 very good.

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

Bankruptcy wipes 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 available options. When getting some advice, keep in mind that there are always choices when it involves Bankruptcy in Mackay, so do some homework, and Good luck!

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

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

Bankruptcy Mackay is a challenging process, and you need to make sure you get the right guidance. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no restraint on how much you can earn. However, I will mention that your income is a serious consideration when working through when it comes to Bankruptcy.

The first thing you need to know about this area of Bankruptcy is how much you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand sum 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 apply for a hardship variation that increases the threshold amount, if you have financial strains in Mackay such as medical, child care, substantial travel to and from your job, or a scenario where your partner used to work but is not able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be 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 thought about, for example if you give $5,000 child support each year and you have no dependents living with you then your modified 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 unsure, it's a good idea 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 cases 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 contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund so long as that doesn't take you over your threshold income limits.

If you believe that when it comes to Bankruptcy, your circumstance is more complex, then just get specialist advice in Mackay. I may seem like a broken record, but keep in mind that it's always a smart idea to overcome these options prior to declaring bankruptcy, due to the fact that once you have filed the paperwork it's far too late to change your mind.

If you would like to find out more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Mackay on 1300 795 575, or explore our website: bankruptcyexpertsMackay.com.au.

Bankruptcy in Mackay - Are you going to get bitten?

When people in Mackay ask me about Bankruptcy, I let them know the classic Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to discover one last sunset before he dies. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They travelled together only for the snake to in the end bite the boy despite his assurance not to do so. The snake's response was 'You knew what I was when you picked me up.

Receiving the right financial advice in Mackay when it concerns Bankruptcy is a great deal like that little boy's encounter, filled with risk and danger, and generally skewed for the benefit of the person supplying the advice. In most cases you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I discovered the problem with getting financial advice as a teenager, and it has been essential to Bankruptcy. I'd been working hard for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were fairly high and investing your money was really profitable. I spent a few years researching diverse investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had great suits and plush offices, they all appeared to exude confidence and have all the answers. What struck me was that they all had a truly different idea of what I should do. This confused me so much that it put me off the entire idea of picking any of them.

I'm sure currently you have read enough on the internet to be totally mixed up about Bankruptcy and exactly what to do. It would undoubtedly be easier for me to help you comprehend the nature of the financial snakes you may be grabbing while you are trying to get to the bottom of your financial troubles in Mackay. Basically, you have to try and figure out what your overarching options are, do your very own research into where to proceed with your strategy for Bankruptcy, and after that approach what you feel is best in Mackay for your requirements. Basically, you have 3 options for who to turn to.

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

Another alternative you may think of is your accountant - they are incredibly useful and vital to the task of managing your business, but for the most part, when you are thinking of Bankruptcy, your accountant won't be much help to you any longer.

Your best option? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you have 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 consult with Bankruptcy Experts Mackay on 1300 795 575, or visit our website:bankruptcyexpertsMackay.com.au.

Bankruptcy in Mackay - Choices, Choice, Choices

When it comes down to Bankruptcy Mackay, there are a lot of options that we get given depending upon who we are, who we approach, and what exactly has gone wrong. Among 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 Mackay, much of the information you receive on this matter 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 one neat and tidy package.

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

Typically I find if you read this blog you've undoubtedly 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 already has defaults on it so no one 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 tiny bit of interest simply won't make a lot of difference,.

• You've undoubtedly reached the stage where you've had more than enough, you're mentally exhausted, 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 Mackay, what's the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Flexibility is the main point Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - might I add - regulated trustee featuring the government trustee ITSA, and not a private company that advertises on TV. Ultimately this method resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they negotiate a deal in your place. You can offer a lump sum settlement figure or take part in a payment plan, or you can offer them assets rather than cash. This might sound fine when it comes to the issues with Bankruptcy - that is until you realize that one of the obstacles with PIA's is that 75 % of the people you owe money to must come to an understanding the deal. If they don't, your proposal is denied or ought to be renegotiated.

Generally the people you owe money really want all their money back plus interest. Sometimes they'll settle for beneath 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 really 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 Bankruptcy and insolvency I've come across creditors opting for less 80 % on rare occasions, but that usually only occurs with a public company going into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of shrewd 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 Mackay 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 Bankruptcy, then feel free to call Bankruptcy Experts Mackay on 1300 795 575, or visit our website: bankruptcyexpertsMackay.com.au.