Bankruptcy in Bunbury - Changes to help Small Business and Entrepreneurs

Do you know how much Bankruptcy Bunbury is changing? The Australian Government in late 2015 recommended some innate changes to the Bankruptcy Laws in Australia. One of the most significant of these is the length of time that a person is bankrupt for. Right now, there is a minimum amount of time that you must continue to be 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 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 adjustments 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 important 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 Behavior

The argument surrounding this Bankruptcy issue in Bunbury that some come up with is that this shift will only invite fraudulent behavior opening pandora's box so to speak for the unscrupulous to exploitation of the bankruptcy system. We have looked at the minimum, but on the other side of the problem, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has operated in an unethical or fraudulent way, and there are no recommendations to change the consequences of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As an insolvency professional in Bunbury, I have a reasonable share of knowledge when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Bunbury I have never caught someone abusing the system or acting in an immoral way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur suffer through the very complex task of bankruptcy, not once have I thought they are happy about it. The average small business owner or entrepreneur in Bunbury does not start out taking enormous financial risks with the intention to fail. The media prefers citing the apparent misuse 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 most effective and brightest in Bunbury not get kicked out of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, companies keeping this country going.

Now 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 preventing people from making missteps that land them in trouble and as a result an issue of Bankruptcy. However you likewise don't want to eliminate the experience and knowledge that business owners have. You undoubtedly don't want to smash people simply because they have had a genuine failure in a large or small start-up venture that has not succeeded.

At the big 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 bankruptcy were decreased because directors are distressed they'll be personally accountable 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 can not imagine, that these variations will be damaging to Australia's economy, in reality these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health field because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Bunbury not a day passes where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you need some help with your debts in Bunbury or are just considering Bankruptcy, don't hesitate to give us a call here at Bankruptcy Experts Bunbury on 1300 795 575, or visit our website:bankruptcyexpertsbunbury.com.au

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

When it comes to Bankruptcy Bunbury, normally people aren't aware that there may be both voluntary, and involuntary bankruptcy - both have distinct methods and rules.

Involuntary bankruptcy happens 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 actually 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 assigned, and then you have 14 days to get the documents in and after that you are bankrupt.

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

However, when it comes to Bankruptcy for this, the stress, 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 help and act on that advice. Generally I've found it's always more effective to know what you can and can't do before you have someone bankrupt you. Once you are bankrupt, it's normally too late.

Voluntary Bankruptcy

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

This question is not the very same for everybody of course, but basically 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 help you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who spoke to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the rate she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can 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 remain on your file for 5 years, so for $30 you can have your credit file seriously damaged for that period of time - and all of this will impact how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unethical. 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, bear 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 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 repay the money and still 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 go over their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the provisions are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. As compared to countries like the United States, our bankruptcy laws are very 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 assumes 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 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 this and Bankruptcy in general but the purpose of this blog was to help you decide between a few possible options. When getting some advice, don't forget that there are always options when it concerns Bankruptcy in Bunbury, so do some research, and Good luck!

If you wish to find out more about just what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to consult with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website:bankruptcyexpertsBunbury.com.au.

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

Bankruptcy Bunbury is a complex process, and you should ensure you get the right advice. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you have to know about going bankrupt is there is no limit on how much you can earn. However, I will say that your income is a considerable consideration when working through when it comes to Bankruptcy.

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

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

You can request a hardship variation that increases the threshold amount, if you have expenses in Bunbury like medical, child care, considerable travel to and from your job, or a situation where your spouse used to work but is not able to contribute to the household income.

Some of the informative parts of Bankruptcy is that your employer will not be informed when you file for bankruptcy. Also, Child support is always taken into account in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you give $5,000 child support each year and you have no dependents living with you then your modified net income limit will be $55,332.10.

There are a lot more issues surrounding income and what is or isn't thought of as income - if you're unsure, it's a good idea to get experienced advice. The reason you need to 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 will likely 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 provided that doesn't take you over your threshold income caps.

If you think when it comes to Bankruptcy, your issue is more challenging, then simply get professional advice in Bunbury. I may seem like a broken record, but bear in mind that it's always a smart idea to work through these options before declaring bankruptcy, due to the fact that once you have filed the paperwork it's too late to change your mind.

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: bankruptcyexpertsBunbury.com.au.

Bankruptcy in Bunbury- Are you going to get bitten?

When people in Bunbury 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 see one last sunset before he passes away. The boy was reluctant, but the rattlesnake vowed not to bite him in exchange for the ride. They went together only for the snake to in the end attack the boy despite his promise not to do so. The snake's response was 'You knew what I was when you picked me up.

Asking for the right financial advice in Bunbury when it pertains to Bankruptcy is a lot like that little boy's experience, laden with risk and danger, and normally skewed for the benefit of the person providing the advice. Often you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I discovered the problem with receiving financial advice as a teenager, and it has been key to Bankruptcy. I'd been keeping my nose to the grindstone 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 very high and investing your money was quite profitable. I spent time researching assorted investment options, and I went to visit a few financial advisors. It was crystal clear that they had more money than I did: they had nice suits and plush offices, they all appeared to exude confidence and have all the answers. What hit me was that they all had an extremely different idea of what I should do. This baffled me a lot that it put me off the whole idea of opting for any of them.

I'm sure currently you have read enough on the internet to be totally confused about Bankruptcy and precisely what to do. It would undoubtedly be easier for me to help you learn about the nature of the financial snakes you might be grasping while you are trying to get to the bottom of your financial issues in Bunbury. Essentially, you need to try and understand what your overarching alternatives are, do your very own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Bunbury 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 possibility when you seem to be in trouble. But certainly there is only so much support they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their knowledge features a hefty price.

Another option 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 more.

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and virtually all you should figure out 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 Bunbury on 1300 795 575, or visit our website:bankruptcyexpertsBunbury.com.au.

Bankruptcy in Bunbury - Choices, Choice, Choices

When it comes to Bankruptcy Bunbury, there are a great deal of choices that we get given depending on who we are, who we talk to, and exactly what has gone wrong. One of the most common trouble I see with Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Bunbury, much of the information you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation provider, 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 aiding you wrap each of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but these people won't be doing it for free. Please do not misunderstand me: if you consider your financial issues in Bunbury may be fixed by paying less interest, then go on and explore the options. Even a small amount of interest saved over years easily adds up.

Typically I find if you read this blog you've probably attempted 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 nonpayments on it so not a single person will offer you a loan, consolidated or otherwise,.

• By the time you work it all out, you're so far down a hole that saving on a bit of interest simply won't make a lot of difference,.

• You've probably gotten to the stage where you've had more than enough, you're emotionally exhausted, you can't go on one more 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 Bunbury, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Flexibility 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 business that advertises on TV. Essentially this method resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts arrange a deal on your behalf. You can offer a lump sum settlement figure or enter into a payment plan, or you can offer them assets rather than cash. This might sound acceptable when it comes to the complications with Bankruptcy - that is until you realize that one of the problems with PIA's is that 75 % of the people you owe money to will need to come to an understanding the deal. If they do not, your proposal is rejected or needs to be renegotiated.

Generally people you owe money really want all their money back plus interest. Sometimes they'll opt for beneath the amount you owe them - it's typically a percentage of the debt - but let me stress this aspect: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will in fact settle for.

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 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 clever 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 Bunbury aren't going to get that lucky!

If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Bunbury on 1300 795 575, or visit our website:bankruptcyexpertsBunbury.com.au.