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bankruptcy

Bankruptcy Experts Bunbury – how travel can get you in trouble.

Something that some people don’t know when they take a look at Bankruptcy is that it can effectively stop you from travelling abroad. This is an aspect that many individuals neglect, and it can actually get you in a lot of trouble.

bankruptcy-imageIn case you are facing Personal bankruptcy then traveling is possibly one of your minor considerations– but it is nevertheless crucial to know about. However if you are currently more anxious about assets, your house, your home, and what they are going to leave you with, then I would totally recommend you make use of our free consult at Bankruptcy Experts Bunbury on 1300 795 575.

But I wish to clarify to you here a little regarding a number of your responsibilities and limitations that are placed upon you when it relates to Bankruptcy. Now don’t let all of this stop you from looking at Bankruptcy, since it is practically often the most intelligent choice to make, but I wish you to become knowledgeable about all the situations that can impact you.

So first of all, when it comes to Bankruptcy you need to recognize that as soon as you declare bankruptcy you are to be deemed a bankrupt until it comes to an end following discharge or annulment. This will generally be 3 years and 1 day after you file.

But! This may be extended if you break the policies. There are a number of them, so please do seek advice from a qualified specialist service, like that at Bankruptcy Experts Bunbury. For right now, let us review overseas travel.

Firstly, it is an offense to travel while bankrupt, or even to make arrangements to travel without having the written authorization of your bankruptcy trustee. As explained the rules on this specific part of Bankruptcy are very clear, and you can face an extension of your insolvency time period– or even face imprisonment upon conviction. Essentially these regulations exist to stop someone who is facing bankruptcy from leaving the country. For the majority of people out there who, as an illustration have a local business in Bunbury and have just made some poor judgments, this won’t be the risk, but the limitations will still apply.

For instance, we once had a client in Bunbury who declared personal bankruptcy and a year later was sadly informed that their mother passed away in her home in England. Our customer, undoubtedly upset, went on the next flight readily available to go and see her relatives. However, this was in conflict of the bankruptcy conditions, and she truly dealt with some substantial problems for leaving the country without consent.

In all honesty, if she had adhered to the procedure there would certainly have been no serious problem as a result of the events, but rules are rules.

The technique encompassing Bankruptcy and international travel is an option on the part of the trustee, but if you do not request consent you are going to end up in trouble– and that is just among one of the typically neglected restrictions when it involves Bankruptcy. You should make sure that you understand as much as you can about Bankruptcy as early on as possible given that only then can you try to make the best decision for your circumstance. I suggest that you utilize our free consultation at Bankruptcy Experts Bunburyon 1300 795 575. And if you have any other questions or concerns about foreign travel or Bankruptcy, then also take a look at our website www.bankruptcyexpertsbunbury.com.au.

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Bankruptcy and Superannuation.

Superannuation is confusing enough, not to mention when you need to think about Bankruptcy also. At Bankruptcy Experts Bunbury we frequently have a lot of people talking to us about what will happen to their super, and if you possess a regulated or industry fund (like most superfunds) then your super is secure, and Bankruptcy will likely have no impact upon your super. Nonetheless, if you possess a Self-Managed Super Fund then you could discover some troubles because there are various things you can not do when insolvent related to the management of finances.

This is really a growing concern with a number of Australians in the last few years; the ATO tells us it has grown Australia-wide from 758,589 in 2009 to 1,011,689 in 2014. So what occurs to these Superfunds when it boils down to Bankruptcy?

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As I recommended previously, a basic option to your SMSF problem is to put your super back into a standard regulated managed fund before personal bankruptcy and save yourself all the issues outlined above.

Firstly, if you are thinking about Bankruptcy, you can not be a part of a SMSF. Why? Because if you are confronting bankruptcy, you will be grouped as a ‘disqualified person’. And a disqualified person can not operate as an Individual Trustee. This leads to a problem because typically most of the SMSFs are just 2 individuals, which implies the two of these users must also be the individual trustees. The position of trustee sets a bunch of legal rules, and if you are in this position I would strongly urge you to become familiar with them all– as an example the fact that you can not ‘know or suspect’ that one of you are bankrupt. So you can observe how an individual insolvency could be quite harmful to a SMSF and as you can imagine the process of Bankruptcy for a SMSF is rather convoluted.

Irrespective if you phone us or somebody else it does not matter, just please don’t walk into bankruptcy blind when it concerns your SMSF. In fact because Bankruptcy is so complicated with SMSFs we encourage you to get both legal and financial advice before proceeding with any one of the decisions pointed out within this short article.

So what occurs if one of the members of an SMSF does enter Insolvency?

For starters, the SMSF will want to be reorganized. This means that you will certainly wish to think about your whole structure and ensure it is satisfying the basic terms, incorporating aspects like maintaining a new trustee that is not coping with problems with Insolvency. The Australian Tax office will provide you a 6 month ‘grace period’ to get this accomplished before you face punishments. And take into consideration, in some cases the most optimal strategy would certainly be to simply roll the fund into an industry or corporate fund.

More than these large-scale restructuring matters, there is a lot of paperwork to cope with too, and you need to be continually keeping the ATO notified of what is taking place. This suggests you have to let them know that you have a bankruptcy issue with your current trustee, that they are being eliminated as quickly as possible and let them know who the new trustee/director is. The Bankrupt will also have to update the ATO using the form NAT 3036 (Found on the ATO website) and they need to also notify ASIC of their resignation.

During that 6 month period of time you will need to remove the Bankrupt from the SMSF– including their property and assets. Keep in mind if you are uncertain call Bankruptcy Experts Bunbury for some complimentary recommendations on 1300 795 575.

What happens if I use a single member fund?

However, if you are a single member fund the Bankruptcy can be a bit different because you will need to designate a new director (because it can not be you from now on) you are going to need to make a great deal of tough selections with this therefore consulting with a professional is going to be essential. You can easily get in touch with Bankruptcy Experts Bunbury for some free guidance on 1300 795 575.

From that you can discover how when it involves Bankruptcy, even though one single member is dealing with troubles, it can have an effect on the very existence of an SMSF. If you are at this point facing this concern yourself, or with a partner in a SMSF, please seek financial advice to make sure you are meeting the ATO requirements.

Bankruptcy is certainly never easy, but finding appropriate suggestions is the very best first step. If you would like to talk about your options further, contact us at Bankruptcy Experts Bunbury or visit our website: www.bankruptcyexpertsbunbury.com.au or just call us on 1300 795 575.

Bankruptcy Bunbury

Bankruptcy and Bunbury, the Tricks Rich People Know about Bankruptcy.

Bankruptcy in Australia is something that individuals seldom want to ever speak about. It is a taboo subject matter, and when a person is enduring a personal financial matter people tend to be quick to identify them rather than assist them. For the most part the whole process of Bankruptcy is of course likely to be a confidential concern, but that can make it hard since one of the greatest components of life is being able to learn from other people’s errors. However if all of the stories about Bankruptcy are being kept private, where can you learn? Well often it is going to be great to check out the wealthy and powerful folks who have endured this who tend to hide in the shadows of both the corporate world and our individual lives. It’s the utmost taboo subject matter. The worry is perception– considering that in reality going bankrupt is primarily a solution that we have the capacity to utilize to safeguard ourselves, and rich individuals understand this. Wealthy people have found that bankruptcy is a vital component of staying in business. In certain situations, factors don’t develop just like you had expected, that the market has altered and the numbers basically don’t work any longer. If you are taking care of a business in Bunbury, then take note, because (and not to sound too dramatic) learning more about this may help you to rescue your business, vehicle, house and family.image

I mean if you think of Clive Palmer’s nickel mine and the fall of the Dick Smith string of customer electrics you can see how Bankruptcy can be intriguing. Both have closed up but both high profile owners are still wealthy and worth millions of dollars. So how does that work? Just how can these particular people have effectively had a substantial business failure, and yet had this barely influence their individual wealth? It is because of the fact that they understand the nuances of Bankruptcy.

To begin with, when it comes to Bankruptcy there are clear ways to secure assets in your business tasks, means to separate off your assets and essentially place a wall in between a business, and your property and motor vehicle. Usually this takes the form of a legal trust, so if you wish to get more information about this then talk to a specialist when building your Bunbury establishment. However, this really should be done before you start having problems.

The next thing that you should discover Bankruptcy from this is that often there could be a period of time when you will certainly want to step back from this business that is struggling and know when to call an end to it. That is what has occurred with Clive Palmer and Dick Smith– both of these have been managing businesses long enough to understand when it is not likely to be successful any longer therefore they end the business as opposed to going down with the ship.

The judgment that surrounds Bankruptcy is something that I would love to have eliminated, since when we really think of it, there are a lot of people that this influences– such as the public figures and rich people– who merely shrug it off, and so why must the average individual who makes a bad decision or two believe they have failed?

If you have ever resided in a Bushfire sensitive location you would recognize that you have 2 options: fight or retreat – and the exact same can be said of business. If you battle with a struggling business in certain scenarios you can save it, but the majority of the time you will be swallowed up by the flames. But if you are clever you will retreat, let the organization of Bankruptcy help extinguish the flames and save your home. As with any aspect of life, this is a difficult decision, and this is one that you should rarely make with no professional advice, but don’t ever hesitate to look to Bankruptcy when you have to.

If you truly want to find out more about some of your options when it concerns Bankruptcy – such as what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to get in touch with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au.

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Filing For Bankruptcy Bunbury, What is the Deal with Debts?

Exactly what Debts are removed if I go Bankrupt?

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The quick answer is that when it comes to Filing For Bankruptcy most debts are wiped, and I have featured a chart below for you to look at.

But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) as well as any debts arising from uninsured Motor-vehicle claims and educational debts for example, HECS or FEE-HELP. These debts are not erased when you file for bankruptcy.

What about Secured Debts?

A secured debt is a car loan or a home loan; it is a debt that has some definite security connected to it. So as an example if you buy a new car for $40,000 dollars the security for this car is the actual car itself.

So, can my secured debts be removed if I file for bankruptcy?

Yes. If you have a car loan for $40,000 you can have that debt cleared away if you simply hand back the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts might be wiped but the asset will need to be sold or returned. This is just one facet that, when it comes to Filing For Bankruptcy, it is necessary to get professional help – like that you can find at Bankruptcy Experts Bunbury.

What about my Tax Debts with the ATO can they be removed If I go bankrupt?

Yes they can, both business and personal debts owing to the ATO can be erased with bankruptcy. If you have a business with any kind of debts get some advice because it is not always so easy. Feel free to call us right here at Bankruptcy Experts Bunbury if you have any type of questions on 1300 795 575. Or feel free to head to our website: www.bankruptcyexpertsBunbury.com.au

What about my business or Company debts?

In some cases when it involves Filing For Bankruptcy we can help you with your business debts, call us concerning this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Normally you may need to liquidate a company to deal with the debt that way. When it comes to Filing For Bankruptcy, it can be a confusing area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Experts Bunbury we specialise in business and personal debts so give us a call here at Bankruptcy Experts Bunbury if you have any questions regarding Filing For Bankruptcy on 1300 795 575. Or feel free to go to our website: www.bankruptcyexpertsBunbury.com.au

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Filing For Bankruptcy Problems! – Just what will extend your Bankruptcy Term?

When it comes down to Filing For Bankruptcy, generally there is a lot of complication because it is generally an area that you really do need to get some firm advice in because typically you may find yourself in an even more severe predicament. That I why here at Bankruptcy Experts Bunbury we truly want to make sure people realize that there are particular things that can really make your Bankruptcy term be stretched from 3 years to 5 (or even 8) years!

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Yes, this means that you will be even longer in the ‘Bankruptcy limbo’ so heed our suggestions and avoid inducing any of the following areas– because if you do, then the entire area of Filing For Bankruptcy becomes even more challenging and the Trustee can actually intercede and get your term extended in lieu of letting it automatically discharge.

So exactly how can the period be extended to 5 years?

There are a variety of ways in Bunbury, and these types of are considered the ‘minor breaches’ because they only extend the term to the 5 year mark. So please, while Bankrupt:

  •  Do not continue to act as a Director of a company.
  •  Do not depart Australia without the permission of your Trustee
  •  Do not acquire credit more that the prescribed amount
  •  Do not fail to attend a meeting of your creditors
  •  Do not fail to reveal a beneficial interest or asset
  •  Do not fail to go to an interview organised by your trustee without having justifiable explanation.

And also, if certain additional aspects are discovered, this can also raise the term to 5 years, so if it is discovered that before Bankruptcy, you:

  •  Made a preferential payment
  •  Entered into an undervalued transaction.

So how can the term be extended to 8 years?

So when it comes down to Filing For Bankruptcy, there are some areas that if you breach can effectively end up extending the term to 8 years. So please, while Bankrupt:

  •  Do not fail to give written explanation to the trustee regarding any issues arising from property or income.
  •  Do not incur more credit than the prescribed quantity
  •  Do not leave Australia and fail to come back when asked by the trustee.
  •  Do not refuse to sign a document after the trustee has requested you to sign it.
  •  Do not fail to disclose a beneficial interest in an asset.
  •  Do not fail to explain the purpose of any money spent or property sold 5 years prior to bankruptcy

And again, if prior to bankruptcy you did any of the following:

  •  Deliberately provided any false or misleading information to your trustee
  •  Entered into a transaction, or extreme payments into your superannuation fund with the intention to defeat creditors

Filing For Bankruptcy and these types of term extensions in Australia are confusing and complicated, these lists of problems that you may face are just the tip of the iceberg as far as your choices in Bunbury are concerned. If you need to know more about Filing For Bankruptcy feel free to consult with us here at Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsBunbury.com.au

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Filing for Bankruptcy in Bunbury – Choices, Choice, Choices.

When it comes to Filing for Bankruptcy in 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 Filing for Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

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Should I consolidate my debts?

When it comes to Filing for 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 Filing for 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 Filing for 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 Filing for 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 Filing for Bankruptcy, then feel free to contact Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsBunbury.com.au.

Bankruptcy Bunbury

Insolvency Advice Bunbury– how travel can get you in trouble.

One thing that lots of folks don’t know when they take a look at Insolvency Advice is that it can actually stop you from travelling overseas. This is a little something that many people overlook, and it can in fact get you in a lot of trouble.

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If you are facing Bankruptcy then travel is probably one of your lesser concerns– but it is nonetheless important to know about. However if you are at this time more worried about assets, your house, your home, and what they can leave you with, then I would wholeheartedly recommend you take advantage of our free consult at Bankruptcy Experts Bunbury on 1300 795 575.

But I want to explain to you here a bit about some of your obligations and restrictions that are placed upon you when it relates to Insolvency Advice. Now don’t let any of this stop you from looking into Insolvency Advice, because it is essentially often the smartest decision to make, but I want you to be aware of all the circumstances that can affect you.

So firstly, when it concerns Insolvency Advice you should know that once you declare bankruptcy you are to be regarded as a bankrupt until it concerns an end as a result of discharge or annulment. This will traditionally be 3 years and 1 day after you file.

However! This may be longer if you break the rules. There are a variety of them, so please do consult a professional service, like that at Bankruptcy Experts Bunbury. For now, let’s review overseas travel.

Initially, it is an offence to travel while bankrupt, or even to make preparations to travel without the written authorization of your bankruptcy trustee. As discussed the rules on this part of Insolvency Advice are clear, and you can face an extension of your bankruptcy period– or even face imprisonment upon conviction. Generally these regulation exist to prevent someone who is facing bankruptcy from fleeing the country. But for many people out there who, for instance have a small business in Bunbury and have just made some poor decisions, this won’t be the risk, but the limitations will still apply.

For instance, we once had a customer in Bunbury who, declared bankruptcy and a year later was unfortunately was told that their mother died in her home in England. Our client, obviously upset, took the next plane available to go see her family. However, this was in contravention of the bankruptcy conditions, and she really faced some severe issues for departing the country without permission.

In all honesty, if she had followed the procedures there would have been no serious issue because of the circumstances, but rules are rules.

The process encompassing Insolvency Advice and overseas travel is discretionary on the part of the trustee, but if you do not ask permission you will end up in trouble– and this is just among one of the often overlooked restrictions when it concerns Insolvency Advice. You have to ensure that you recognize as much as you can about Insolvency Advice as early as possible since only then can you try to make the very best decision for your situation. I suggest that you use our free consultation at Bankruptcy Experts Bunbury on 1300 795 575. And if you have any questions of concerns about overseas travel or Insolvency Advice, then also see our website www.bankruptcyexpertsBunbury.com.au.

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Going Bankrupt in Bunbury, the Mysteries Rich People Understand about Going Bankrupt

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Going Bankrupt in Australia seems to sneak in the shadows of both the corporate world and our personal lives. It’s the ultimate taboo subject. The trouble is perception– because in truth bankruptcy is just a tool that we can use to protect ourselves, and rich people know this. Rich people have worked out that insolvency is an essential part of staying in business, in some cases things don’t work out like you had planned, that the market has changed and the numbers simply don’t work anymore. If you are operating a small business in Bunbury, then listen, because (and not to sound too dramatic) getting to know this may help you to save your business, car, house and family.

With the recent end and liquidation of Clive Palmer’s nickel mine there has been a community reaction, employees have lost their jobs and an entire community will be impacted by the sudden shut down of the mine. Similarly we have also seen the downtrend of the Dick Smith’s chain of consumer electrics, as you have possibly noticed around Bunbury– nonetheless this has been met with far less outrage in the community.

Regardless, both have closed and yet both high profile owners are nevertheless rich and worth millions of dollars. So how does that work? How can these people have basically had a huge business failure, but had this barely affect their personal wealth? It is due to the fact that they understand the nuances of Going Bankrupt.

When it concerns businesses, there is often a risk that you are going to fail, and this is no different when compared to a small business in Bunbury than it is to looking at a large corporation– there is always risk, and there is always a way to soften the risk.

First of all, there are certain ways to protect assets in your business ventures, ways to split up your assets and basically place a wall between a business, and your home and car. Often this has the form of a legal trust, if you wish to find out more about this then talk to a professional when starting your Bunbury business. However this really needs to be done long before you start having problems.

The 2nd thing that you ought to discover Going Bankrupt from this is that often there will be a period of time when you will have to step back from the business that is falling short and know when to call an end to it. This is what has happened with Clive Palmer and Dick Smith– both have been operating businesses long enough to know when it is not going to prosper any longer and so they pull the plug instead of going down with the ship.

Ultimately, Going Bankrupt is seen as a horribly demanding decision loaded with stigma, and we have to remove this, because some of the most successful and wealthy people around the world have declared bankruptcy several times.

One of the biggest complications that numerous people have in Bunbury is that business owners are not ready to just stand back from the problem and think critically. Because often there is not going to be a moment when you can easily just ‘call it quits’, but you need to realise when fighting on is just going to do more harm than good – because you don’t need to fight to the bitter end.

If you have ever lived in a Bushfire sensitive area you would know that you have 2 options: fight or retreat – and the same can be said of business. If you fight with a failing business in some cases you can save it, but typically you will be swallowed up by the flames. But if you are smart you will retreat, let the establishment of Bankruptcy help snuff the flames and save your house. Similar to any part of life, this is a hard decision, and this is one that you should rarely make without specialist advice, but don’t fear to turn to Going Bankrupt when you have to.

If you really would like to learn more about some of your options when it concerns Going Bankrupt – such as what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to get in touch with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsBunbury.com.au.

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How to improve your chances of going bankrupt in Bunbury

Having spent years in the mysterious world of bankrupt in Bunbury I have produced a list to reasons people wind up declare bankruptcy and finish up broke. This is by no means an exhaustive list, there are as many ways to end up bankrupt it seems as there are hot dinners, however for the sake of everyone’s peace of mind I have kept this list to a simple Top 10.

You will notice that there is a theme in all of these and it focuses on change. It’s generally change that destroys us financially, anyway lets get to it; By the way the first 5 are applicable to everyone and the entire list is relevant for the business owners.

So how do increase my chances or going bankrupt I hear you ask try this list on for size.

Get Divorced. This shouldn’t come as too much of a surprise to anyone, household finances are generally worked out on 2 incomes, when that changes assets need to be sold and loans that were obtained based on two incomes suddenly become just one parties responsibility and before you know it someone winds up bankrupt. Start a Business. You have heard that most small businesses fail in the first 6 months regrettably this holds true, generally that failure is accompanied by debt far beyond what an individual can re-pay in a reasonable period. Get Sick. Typically when you apply for a loan for that new vehicle you are basing your ability to repay the loan on everything working out and that includes your health. One day you wake up with a devastating illness your capacity to work and repay the loan is destroyed over night. Lose your Job. Unemployed or underemployment is a major reason for bankruptcy. It doesn’t take long for the bills to start piling when there is no income coming in. Legal Action. If someone decides to take you to court for any reason and you end up with a bill from both your lawyers and from losing the case it doesn’t take long before you can be out of pocket a substantial amount of money. Trusting your Accountant. This one applies to business owners really, everyday I hear someone curse their accountant for not doing their BAS. Its either the taxes haven’t been done for years or they have been done but now we have a huge tax bill. Either way you as the business owner end up with a ATO bill bigger than Ben Hur and no way to repay it in the time the ATO require. Signing a Commercial Lease. Another one for the business owner. Generally a small business needs an area to work from whether in retail or whatever, so sadly in this country when you sign your name on a lease you (not your company or trust) are personally liable for the rent for the entire period of the lease. Typically these are 3 to 5 year deals and you are trapped. Partnership Breakdown. Going into business with a friend instead of your horrible boss doing something your excited about sounds perfect doesn’t it? Business is tough enough without having an partnership dynamic to contend with, it doesn’t take long before the rot can set in. Because you are good friends with someone it doesn’t automatically imply that you would be good business partners. Adverse Market Conditions. I had a client who ran a successful fireplace business he had a retail store and 8 truck on the road installing them, until one day the local council decided that open fireplaces are no longer legal as they are a bush fire hazard. Any tick of the clock things can change in the market and your business can evaporate over night. Using your Credit Cards to help your business. Once you find yourself consistently putting business bills on your credit cards or re-mortgaging the house to keep the business ticking it could be the beginning of the end. You never seem to catch it back up.

I realize that this is a fairly negative list of possibilities, hopefully you can take something away from it that will save you pain and potential bankruptcy. In my experience no one ever signs a loan or starts a business with the intention to go bankrupt and losing it all, however it does happen to about 25,000 people a year in Bunbury. If you are trapped in debt and feel like you have no options get some advice from an Insolvency Specialist, you will be surprised on what options you do have. Bankruptcy is not the end of the road its the beginning of a new debt free road.