Bankruptcy in Toowoomba - Who exactly do I speak to?

Should I get in touch with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anyone knows your financial circumstance well in Toowoomba, 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 specialization lie in helping you save you money at tax time, minimizing 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 specialty course for those who want to work in the field. Unless your accountant is an insolvency specialist, he wouldn't 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 manage to find an insolvency accounting firm in Toowoomba, they have the tendency to be large firms with very nice offices who charge accordingly.

Should I consult my Solicitor about Bankruptcy?

No! You can speak with your solicitor in Toowoomba but more than likely it won't do you much good. Solicitors are definitely good at undertaking things lawyers do, like assisting you do your Will and buying your house and trying to keep you out of court if you're lucky. When it concerns Bankruptcy, the specialists in Toowoomba typically have either a legal or accounting experience, and the main 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 as there are a small number of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay an ample price for their expertise.

Should I speak with 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 fabulous option for helping you analyze your situation when it comes to Bankruptcy. If you find yourself freaking out constantly, not sleeping, not eating or over-eating and thinking of money pressures all the time, then get some help.

There are also charities around Toowoomba like Lifeline that offer an excellent service. They will be a sounding board if you just need somebody to talk about with you what your choices are. Don't let your financial trouble 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 call Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website: www.bankruptcyexpertsToowoomba.com.au.

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

When people in Toowoomba come to me wanting to speak about Bankruptcy, they are typically filled with questions. The internet is full 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 very most natural issues is 'Will I lose my business if I declare bankruptcy?' The brief answer is no. If you are an owner of a company any shape or size you can keep your business if you would like to. In Toowoomba, businesses that eventually are insolvent have a few options for example, liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complex area so get some experienced advice on this 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 Toowoomba: A bankrupt can not be a director of a company, so if you have a pty ltd company you will need to resign as a director as soon as you're bankrupt.

A restriction that applies when you are bankrupt as a business owner is that you may be in your own business as a sole trader only. Generally there are things you must disclose as an aspect of that but generally you can still run your business. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. As an example, if you run a building company, your license will be suspended once you're bankrupt and as a consequence you can no longer trade without that license, so make sure you are asking the ideal questions when it comes to licenses and Bankruptcy in Toowoomba.

But if your business is not impacted directly by such issues, then you'll will 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 rack up heaps of debt in your company, then go bankrupt and after that open the doors the next day like nothing had happened. There are laws in place to stop what is called phoenix companies growing out of the ashes of an old company.

Having said that, it's just an issue of talking to the right people about Bankruptcy. Here in this situation you may believe you need a liquidator for your business, and you may be right, but keep in mind that every liquidator is different and have their own motives. Liquidators earn money 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 possibly risky as it can have very serious 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 incorrect advice for the other. There are some principles however, that you may benefit from. There is no limitation to the size of the business you run even though you are bankrupt. You can employ staff. You can constantly 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 too confused about what you can and can't do as a business owner, just get the best advice ... If you want to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website: .bankruptcyexpertsToowoomba.com.au.

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

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

Involuntary bankruptcy happens when someone 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 goes back to the court and requests the court to issue a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the paperwork in and afterwards you are bankrupt.

You can object to a bankruptcy notice by going to court right 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 reality no difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're conducted to in the same way.

However, when it concerns Bankruptcy for this, the stress, torment and fear that accompanies this process is incredible. If you think you are probable to be made bankrupt by someone, get some tips 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 an individual bankrupt you. Once you are bankrupt, it's typically far too late.

Voluntary Bankruptcy

On the other hand, when it comes to Bankruptcy, sometimes there are moments 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 same for everybody 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 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 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 overlook 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 unscrupulous. The punishment doesn't seem to equate to the crime in my book. So if you already have defaults on your credit report for 5 years, remember that bankruptcy is on your credit file for a total 7 years then its wiped off completely.

So if your credit rating is a big detail 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 change is that with a DA or PIA you pay back 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 element 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 over with no strings attached. Compared to countries like the United States, our bankruptcy laws are extremely good.

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 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 except for 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 actually 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 readily available options. When getting some advice, bear in mind that there are always choices when it relates to Bankruptcy in Toowoomba, so do some research, 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 don't hesitate to consult with Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website: www.bankruptcyexpertsToowoomba.com.au.

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

Bankruptcy Toowoomba is a confusing process, and you have to 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 rule on how much you can earn. However, I will say that your income is a significant consideration when working through when it comes to Bankruptcy.

The first thing you need to keep in mind 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 amount you earn per year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can get a hardship variation that raises the threshold amount, if you have costs in Toowoomba like medical, child care, major travel to and from your job, or a scenario where your partner 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 notified when you file for bankruptcy. Also, Child support is always looked at 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 pay $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are much more issues involving income and what is or isn't thought of as income - if you're unsure, it's ideal to get specialist advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some situations not an economically sensible 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 chip in toward your tax bill. If you don't have a tax bill then you will keep your tax refund as long as that doesn't take you over your threshold income restrictions.

If you believe that when it comes to Bankruptcy, your situation is more complex, then just get experienced advice in Toowoomba. I may seem like a broken record, but keep in mind that it's always a great idea to overcome 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 learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Toowoomba on 1300 795 575, or check out our website: bankruptcyexpertsToowoomba.com.au.

Bankruptcy in Toowoomba - Choices, Choice, Choices

When it comes down to Bankruptcy Toowoomba, there are a lot of options that we get given depending upon who we are, who we speak 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 Toowoomba, much of the information you receive on this issue 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 business 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 just one neat and tidy bundle.

I hate to tell you this but they aren't doing it free of charge. Please don't misunderstand me: if you feel your financial problems in Toowoomba might be solved by paying less interest, then go on and check out the options. Even a small amount of interest saved over years quickly adds up.

More often than not I find if you read this blog you've most likely tried to consolidate your debts already and come to the following realisations such as these:

• Your credit rating is not good, and your credit file already has nonpayments on it so nobody will give you a loan, consolidated or otherwise,.

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

• You've very likely reached the point where you've had more than enough, you're mentally drained, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.

Personal Insolvency Agreements

So when it comes down to Bankruptcy in Toowoomba, what's the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability is the main point 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. Essentially this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys arrange a deal on your behalf. You can offer a lump sum settlement figure or enter into a payment plan, or maybe you can offer them assets rather than cash. This can sound alright when it comes to the troubles with Bankruptcy - that is up until you discover that one of the difficulties with PIA's is that 75 % of the people you owe money to will need to come to an understanding the deal. If they don't, your proposal is rejected or needs to be renegotiated.

Generally people you owe money want all their money back in addition to interest. Sometimes they'll opt for less than the amount you owe them - it's normally 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 truly settle for.

Most of the time 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 choosing less 80 % on rare occasions, but that usually only occurs with a public company entering into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of smart 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 Toowoomba 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 Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website:bankruptcyexpertsToowoomba.com.au.

Bankruptcy in Toowoomba - Are you going to get bitten?

When people in Toowoomba 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 dies. The boy was hesitant, but the rattlesnake promised not to bite him in exchange for the ride. They went together only for the snake to ultimately bite the boy despite his assurance not to do so. The snake's answer was 'You knew what I was when you picked me up.

Asking for the right financial advice in Toowoomba when it relates to Bankruptcy is a whole lot like that little boy's encounter, laden with risk and danger, and usually skewed for the benefit of the person supplying the advice. In many cases you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been key to Bankruptcy. I'd been working hard for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was quite profitable. I spent some time researching a variety of 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 good suits and plush offices; they all appeared to exude confidence and have all the answers. What hit me was that they all had a truly different idea of what I should do. This puzzled 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 lost about Bankruptcy and exactly what to do. It would probably be easier for me to help you understand the nature of the financial snakes you could be picking up while you are trying to get to the bottom of your financial problems in Toowoomba. Essentially, you need to try and comprehend what your overarching alternatives are, do your very own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Toowoomba for your needs. Essentially, you have 3 options for whom to turn to.

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

Another choice you may consider 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 anymore.

Your best choice? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you need to understand 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 consult with Bankruptcy Experts Toowoomba on 1300 795 575, or visit our website:bankruptcyexpertsToowoomba.com.au.

Bankruptcy in Toowoomba - Changes to aid Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Toowoomba is changing? The Australian Government in late 2015 came up with some radical 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. Now, there is a minimum amount of time that you must continue to be bankrupt, however, this 3 year period may in fact be reduced to just 12 months. So if you are asking about Bankruptcy, this news may be pretty 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 protecting family assets was very important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws put off 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 Behavior.

The controversy surrounding this Bankruptcy issue in Toowoomba that some make is that this modification will only motivate fraudulent behavior opening pandora's box so to speak for the unscrupulous to abuse of the bankruptcy system. We have taken a look at the minimum, but on the other side of the issue, The government is not suggesting to change the maximum term of 8 years if it deems a bankrupt has acted in an unethical or fraudulent way, and there are no recommendations to change the consequences of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Toowoomba, I have a decent share of experience when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Toowoomba I have never struck someone abusing the system or acting in an unaccountable way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur look at the very formidable task of bankruptcy, not once have I really felt they are happy about it. The standard small business owner or entrepreneur in Toowoomba does not start out taking enormous financial risks with the intention to fail. The media prefers citing the apparent wrongdoing 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 Toowoomba not get tossed 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, because they are attempting to balance helping individuals who have made decisions out of their control, and discouraging people from making oversights that land them in trouble and therefore an issue of Bankruptcy. However you also don't want to wipe out the experience and knowledge that business owners have. You absolutely don't want to smash people simply because they have had an honest failure in a large or small start-up venture that has not succeeded.

At the big end of town large developed companies have long been criticised for their failure to innovate - lets face it they would be more likely to do so if the risks of insolvency were scaled down because directors are concerned they'll be personally liable in an insolvency arrangement if the new venture doesn't work out.

The government's proposed 'safe haven' changes 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 alterations will be harmful to Australia's economy, indeed these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health industry because the emotional cost of bankruptcy is substantial. When it comes to Bankruptcy in Toowoomba not a day passes where I don't find out the tragic stories of relationship failures, thoughts of suicide and the list goes on.

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