Bankruptcy in Brisbane - Who exactly do I speak to?

Should I get in touch with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody knows your financial circumstance well in Brisbane, 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 at heart when it comes to Bankruptcy, it's that his abilities lie in helping you save you money at tax time, reducing your tax liability and lodging your BAS.

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

Should I talk with my Solicitor about Bankruptcy?

No! You can talk to your solicitor in Brisbane but more than likely it won't do you much good. Solicitors are definitely 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 Brisbane generally have either a legal or accounting experience, and the main reason for that is simply that you can't start in the post graduate study to become a qualified insolvency practitioner unless 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 locate one you will pay a sizable 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 through this, they have no hidden agendas and they're a superb option for helping you analyze your situation when it comes to Bankruptcy. If you find yourself stressing out constantly, not sleeping, not eating or over-eating and thinking of money pressures continuously, then get some help.

There are also charitable organizations around Brisbane like Lifeline that offer a fantastic service. They will be a sounding board if you just need a person to discuss 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 Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-Brisbane

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

When people in Brisbane come to me trying to discuss Bankruptcy, they are constantly full of questions. The internet has lots of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make it more clear. One of the most simple concerns 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 Brisbane, businesses that become insolvent have a few options for example, liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complicated 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 hand in hand when a business owner goes bankrupt. There are several essential implications for directors of companies when it pertains to Bankruptcy in Brisbane: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to retire as a director as soon as 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 will need to make known as a part of that but ultimately you can still run your company. For some business owners, bankruptcy affects 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 therefore you can not trade without that license, so make sure you are asking the ideal questions when it involves licenses and Bankruptcy in Brisbane.

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 business, then go bankrupt then open the doors the next day like not a thing had happened. There are laws in place to stop what is called phoenix companies popping up out of the ashes of an old business.

Having said that, it's just a point of speaking with the correct people about Bankruptcy. In this circumstance you may believe you need a liquidator for your business, and you could be right, but keep in mind that every liquidator is varied and have their own motives. Liquidators profit from your liquidation - heaps of money - so what advice do you think you will get?

When it comes to Bankruptcy, I believe that giving generic advice in this area is essentially damaging as it can have very major implications for directors and business owners. This is because it is just one of those cases where what the right guidance for one business owner is the inappropriate advice for the other. There are some basics however, that you may benefit from. There is no reduce to the size of the business you run while you are bankrupt. You can employ staff. You can continue to deal with your suppliers 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 overly stressed about what you can and can't do as a business owner, just get the appropriate advice ... If you want to learn more about what to do, precisely where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Brisbane

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

When it comes to Bankruptcy Brisbane, generally people aren't aware that there can be both voluntary, and involuntary bankruptcy - both have different methods and rules.

Involuntary bankruptcy arises when a person you owe money to applies to the court to declare you bankrupt. Generally 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 requests 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 contest a bankruptcy notice by going to court immediately after the 21 days have expired and put your case forward, to prevent 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 administered to in the 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 prone to be made bankrupt by someone, get some guidance 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 somebody bankrupt you. Once you are bankrupt, it's usually too late.

Voluntary Bankruptcy

On the other hand, when it comes to Bankruptcy, sometimes there are times that it is the most effective option. So you may need 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 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 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 level 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 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 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 affect how you need 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 actually have defaults on your credit report for 5 years, remember that bankruptcy is on your credit file for a total 7 years then its erased completely.

So if your credit rating is a big aspect 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 change 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 most 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 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 with countries like the United States, our bankruptcy laws are quite generous.

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 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 a lot 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 readily available options. When getting some advice, remember that there are always choices when it concerns Bankruptcy in Brisbane, so do some investigation, and Good luck!

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 contact Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Brisbane

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

Bankruptcy Brisbane is a complex process, and you need to ensure you get the right recommendations. 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 limit on how much you can earn. However, I will say that your income is a serious consideration when working through when it comes to Bankruptcy.

The very first thing you need to keep in mind 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 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 financial commitments in Brisbane 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 add to the family income.

Some of the interesting parts of Bankruptcy is that your employer will not be told 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 amended net income limit will be $55,332.10.

There are much more issues involving income and what is or isn't regarded as income - if you're not sure, it's a good idea 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 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 just as long as that doesn't take you over your threshold income limitations.

If you believe that when it comes to Bankruptcy, your situation is more complex, then just get qualified advice in Brisbane. I may seem like a broken record, but keep in mind that it's always a great idea to work through these options prior to declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you would like to learn more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to contact Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Brisbane

Bankruptcy in Brisbane - Choices, Choice, Choices

When it comes to Bankruptcy Brisbane, there are a great deal of options that we get given depending upon who we are, who we speak to, and just what has gone wrong. Among 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 Brisbane, much of the facts you receive on this subject will reflect the interests of the advice giver. That is why, if you call a debt consolidation provider, 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 simple way: charging you a fee for aiding you wrap each one of your credit card and personal loans into a single neat and tidy bundle.

I hate to tell you this but these people won't be doing it free of charge. Please don't misunderstand me: if you feel your financial problems in Brisbane might be solved by paying less interest, then go ahead and investigate the choices. Even a tiny amount of interest saved over years rapidly adds up.

More often than not I find if you read 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 defaults on it so not a single person will give you a loan, consolidated or otherwise,.

• By the time you work it all 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 very likely reached the stage where you've had more than enough, you're emotionally burnt out, 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 Brisbane, what's the big 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 featuring the government trustee ITSA, and not a private company that advertises on TV. Essentially this method resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these experts work out 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 can sound fine when it comes to the troubles with Bankruptcy-- that is until you realize that one of the challenges with PIA's is that 75 % of the people you owe money to must come to an understanding the deal. If they do not, your plan is denied or ought to be renegotiated.

Generally the people you owe money prefer all their money back and also interest. Sometimes they'll settle for less than the amount you owe them - it's normally a percentage of the debt-- but allow me to 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 actually settle for.

In many cases 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 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 settling 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 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 Brisbane aren't going to get that lucky!

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 call Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Brisbane

Bankruptcy in Brisbane - Are you going to get bitten?

When people in Brisbane 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 discover 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 attack the boy despite his assurance not to do so. The snake's response was 'You knew what I was when you picked me up.

Obtaining the right financial advice in Brisbane when it pertains to Bankruptcy is a lot like that little boy's encounter, tangled up with risk and danger, and generally skewed for the benefit of the person supplying the advice. In most cases you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with getting financial advice as a teenager, and it has been fundamental 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 fairly high and investing your money was very profitable. I spent some time researching many different investment options, and I went to visit a few financial advisors. It was obvious that they had more money than I did: they had good suits and plush offices, they all seemed to exude confidence and have all the answers. What struck me was that they all had a really different strategy of what I should do. This frustrated me so much that it put me off the whole idea of selecting any of them.

I'm sure currently you have read more than enough on the internet to be totally bewildered about Bankruptcy and what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you may be grabbing while you are attempting to get to the bottom of your financial issues in Brisbane. In essence, you need to try and recognize what your overarching choices are, do your very own research into where to proceed with your plan for Bankruptcy, and after that approach the things you feel is best in Brisbane for your needs. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may appear like the go-to solution when you appear to be in trouble. But there is only just so much assistance they can give on this matter. There are absolutely specialist legal advisors in bankruptcy, but their knowledge features a hefty price.

Another choice you may think about is your accountant- they are incredibly useful and vital to the process of managing your business, but for the most part, when you are considering Bankruptcy, your accountant won't be much help to you anymore.

Your best choice? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you have to know when it comes to Bankruptcy.

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 speak to Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Brisbane.

Bankruptcy in Brisbane - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Brisbane is changing? The Australian Government at the end of 2015 moved for some foundational 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 remain bankrupt, having said that, 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 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 changes to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that giving protection to 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 as a result mentoring had been "driven out of the system".

"They naturally find it very intimidating themselves personally and with their assets at risk in a risky early-stage deal, but with their own money in the deal and a lightened-up provision I think we 'd probably see more willingness. It could be more important than the money.".

Fraudulent Behaviour.

The debate around this Bankruptcy issue in Brisbane that some come up with is that this change will only motivate fraudulent behaviour opening pandora's box in a manner of speaking for the unscrupulous to misuse of the bankruptcy system. We have taken a look at the minimum, but on the other side of the matter, The government is not recommending 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 proposals to change the repercussions of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Brisbane, I have a fair share of knowledge when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Brisbane 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, each week I help a small business owner or entrepreneur undergo the very complicated task of bankruptcy, not once have I perceived they are happy about it. The ordinary small business owner or entrepreneur in Brisbane 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 Brisbane 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, companies keeping this country going.

Certainly there is a fine line with precisely what the government is trying to do here, because they are attempting to balance helping individuals who have made decisions out of their control, and preventing people from making mistakes that land them in trouble and consequently an issue of Bankruptcy. However you also don't want to destroy the experience and knowledge that business owners have. You absolutely 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 succeeded.

At the big 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 project doesn't work out.

The government's proposed '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 refinements will be detrimental to Australia's economy, in fact 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 substantial. When it comes to Bankruptcy in Brisbane not a day goes by 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 Brisbane or are just thinking of Bankruptcy, don't hesitate to call us here at Fresh Start Solutions Brisbane on 1300 818 575, or visit our website: www. freshstartsolutions.com.au/bankruptcy-brisbane