Bankruptcy in Newcastle - Who do I speak to?

Should I talk to my accountant about Bankruptcy?

The answer seems clear doesn't it: if anybody knows your financial situation well in Newcastle, 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 at heart when it comes to Bankruptcy, it's that his proficiency lie in helping you save you money at tax time, minimising your tax liability and lodging your BAS.

Most accounting degrees will put in very little to no time on bankruptcy, it's generally carried out as a post graduate speciality program for those who intend to work in the field. Unless your accountant is an insolvency specialist, he won't know that a lot about the effects 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 Newcastle, they tend to be large firms with very nice offices who charge accordingly.

Should I talk with my Solicitor about Bankruptcy?

No! You can speak to your solicitor in Newcastle but more than likely it won't do you much good. Solicitors are certainly 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 concerns Bankruptcy, the specialists in Newcastle often 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 handful 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 talk to a financial counsellor about Bankruptcy?

Yes! There are plenty of financial counselling services to assist you through this, they have no hidden agendas and they're a wonderful option for letting you think through your situation when it comes to Bankruptcy. If you are stressing constantly, not sleeping, not eating or over-eating and thinking of money pressures continuously, then get some help.

There are also charitable organizations around Newcastle like Lifeline that offer a wonderful service. They will be a sounding board if you just need someone to talk about with you what your possibilities are. Don't let your financial trouble destroy your life - in the end it's just money.

If you would like 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 Experts Newcastle on 1300 795 575, or visit our website: www.bankruptcyexpertsNewcastle.com.au.

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

When people in Newcastle come to me looking to discuss Bankruptcy, they are typically packed 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 it clearer. One of the most basic troubles is 'Will I lose my business if I declare bankruptcy?' The brief answer is no. If you are a manager of a business any shape or size you can keep your business if you wish to. In Newcastle, businesses that end up being insolvent have a few options for instance, liquidation, voluntary administration and so on. It's individuals who go bankrupt not businesses.

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

A limitation that applies when you are bankrupt as a business owner is that you can be in your own business as a sole trader only. Generally there are things you will need to make known as an aspect of that but essentially you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. For 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 best questions when it comes to licenses and Bankruptcy in Newcastle.

However 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 then open the doors the next day like almost nothing had happened. There are laws in place to prevent what is called phoenix companies popping up out of the ashes of an old business.

Having said that, it's just a point of talking with the right people about Bankruptcy. Here in this circumstance you may believe you need a liquidator for your business, and you could be right, but remember that every liquidator is distinct 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 essentially damaging as it can have very substantial 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 wrong advice for the other. There are some principles however, that you may benefit from. There is no restriction to the size of the business you run though you are bankrupt. You can employ staff. You can continue to deal with your providers under certain conditions, the main one being you will need to meet the payment terms agreed upon.

So when it comes to Bankruptcy, don't get too 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 Experts Newcastle on 1300 795 575, or visit our website: www.bankruptcyexpertsNewcastle.com.au.

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

When it comes to Bankruptcy Newcastle, usually people aren't aware that there are both voluntary, and involuntary bankruptcy - both have unique approaches and guidelines.

Involuntary bankruptcy occurs when a person you owe money to applies to the court to declare you bankrupt. Usually when you get one of these particular 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 documents in and after that you are bankrupt.

You can object to 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 distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're administered to in the same way.

However, when it concerns Bankruptcy for this, the stress, torment and fear that accompanies this method is incredible. If you think you are prone to be made bankrupt by someone, get some help 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 a person bankrupt you. Once you are bankrupt, it's usually too late.

Voluntary Bankruptcy

Alternatively, 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 every person of course, but usually I find that one way you could work it out is to figure out just how long it will take you to pay each one 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 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 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 phone 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 unjust. The punishment doesn't seem to equal the crime in my book. So if you currently 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 erased completely.

So if your credit rating is a big factor in trying to decide whether to enter into 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 talked about the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the part more people are afraid of when they come to me to discuss their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this specific country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all finished with no strings attached. Compared to countries like the United States, our bankruptcy laws are quite reasonable.

I don't claim to know why that is but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government finds that 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 pay for a car accident if the car was not insured.

There is far 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, bear in mind that there are always possibilities when it relates to Bankruptcy in Newcastle, so do some homework, and Good luck!

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to check with Bankruptcy Experts Newcastle on 1300 795 575, or visit our website:bankruptcyexpertsNewcastle.com.au.

Bankruptcy in Newcastle - Will my income be changed if I go bankrupt?

Bankruptcy Newcastle is a confusing process, and you should ensure you get the right guidance. 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 rule on how much you can earn. However, I will mention that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to know 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 portion 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 get a hardship variation that raises the threshold amount, if you have costs in Newcastle such as medical, child care, considerable travel to and from your job, or a situation where your partner used to work but is no longer able to contribute to the household income.

Some of the informative parts of Bankruptcy is that your employer will not be notified 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 altered net income limit will be $55,332.10.

There are much more issues surrounding income and what is or isn't considered income - if you're not exactly sure, it's a good idea to get specialist advice. The reason you must 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 will likely be taken by the ATO whilst 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 believe that when it comes to Bankruptcy, your circumstance is more challenging, then just get specialist advice in Newcastle. 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 problems to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Newcastle on 1300 795 575, or go to our website:bankruptcyexpertsNewcastle.com.au.

Bankruptcy in Newcastle - Choices, Choice, Choices

When it comes to Bankruptcy Newcastle, there are a ton of choices that we get given depending upon who we are, who we speak with, and what exactly has happened. One of the most common confusion I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Newcastle, most of the information you receive on this subject will reflect the interests of the advice giver. Therefore, if you call a debt consolidation company, I can guarantee 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 helping you wrap most 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 free of charge. Please do not misunderstand me: if you think your financial issues in Newcastle can be fixed by paying less interest, then go ahead and check out the options. Even a tiny amount of interest saved over years quickly adds up.

Typically I find if you are reading this blog you've undoubtedly attempted to consolidate your debts already and come to the following realisations similar to these:

- Your credit rating is not 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 all of it out, you're so far down a hole that saving a tiny bit of interest simply won't make a lot of difference,.

- You've very likely gotten to the stage where you've had enough, you're emotionally worn down, 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 comes down to Bankruptcy in Newcastle, 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 - may I add - regulated trustee featuring the government trustee ITSA, and not a private company that advertises on TV. Basically this process is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these guys mediate a deal in your place. You can give a lump sum settlement figure or take part in a payment plan, or perhaps you can offer them assets rather than cash. This might sound fine when it comes to the problems with Bankruptcy - that is until you realise that one of the challenges with PIA's is that 75 % of the people you owe money to will have to agree on the deal. If they don't, your proposal is denied or ought to be renegotiated.

Generally people you owe money prefer all their money back plus interest. Sometimes they'll go for beneath the amount you owe them - it's typically a percentage of the debt - but let me 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 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 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 wise 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 Newcastle aren't going to get that lucky!

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

Bankruptcy in Newcastle - Are you going to get bitten?

When people in Newcastle ask me about Bankruptcy, I tell them the simple Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to see one last sunset before he passes away. 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 ultimately bite the boy despite his vow 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 Newcastle when it relates to Bankruptcy is a whole lot like that little boy's journey, laden with risk and danger, and typically skewed for the benefit of the person offering the advice. In most cases you'll get bitten unless you know what you've picked up long before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been necessary 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 very high and investing your money was quite profitable. I spent time researching a variety of investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had good suits and plush offices, they all appeared to exude confidence and have all the answers. What struck me was that they all had a truly different strategy of what I should do. This frustrated me so much that it put me off the entire idea of selecting any of them.

I'm sure currently you have read more than enough on the internet to be totally mixed up about Bankruptcy and precisely what to do. It would probably be easier for me to help you understand the nature of the financial snakes you might be grabbing while you are attempting to get to the bottom of your financial problems in Newcastle. Essentially, you need to try and recognize what your overarching options are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach the things you feel is best in Newcastle for your requirements. Essentially, you have 3 options for who to turn to.

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

Another alternative you may consider 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 of Bankruptcy, your accountant won't be much help to you anymore.

Your best choice? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and virtually all you have to understand when it comes to Bankruptcy.

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult with Bankruptcy Experts Newcastle on 1300 795 575, or visit our website: www.bankruptcyexpertsNewcastle.com.au.

Bankruptcy in Newcastle - Changes to aid Small Business and Entrepreneurs

Do you have an idea of just how much Bankruptcy in Newcastle is changing? The Australian Government at the end of 2015 submitted 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. Currently, there is a minimum amount of time that you must stay bankrupt, having said that, this 3 year period may in fact be reduced down to just 12 months. So if you are asking 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 changes to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that safeguarding 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 controversy around this Bankruptcy issue in Newcastle that some make is that this change will only push fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to exploitation of the bankruptcy system. We have considered 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 performed in an unethical or fraudulent way, and there are no proposals to change the outcomes of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Newcastle, I have a fair share of experience when it comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Newcastle I have never come across someone abusing the system or acting in an unaccountable way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur go through the very difficult task of bankruptcy, not once have I believed they are happy about it. The typical small business owner or entrepreneur in Newcastle does not start out taking enormous financial risks with the intention 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 most effective and brightest in Newcastle not get kicked out of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, managers keeping this country going.

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

At the major end of town large well 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 reduced because directors are troubled they'll be personally liable in an insolvency arrangement if the new endeavor doesn't work out.

The government's suggested 'safe haven' changes 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 improvements 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 field because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Newcastle not a day passes where I don't hear the tragic stories of relationship failures, thoughts of suicide and the list goes on.

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