blog (Page 4)

you-dont-know-how-much-you-owe

Losing your home: Just how much do you know of Bankruptcy in Bunbury?

The most significant concern many have with Bankruptcy is without a doubt ‘Can I manage to retain my home?’ and it might be complicated, but sometimes it is attainable.

you-dont-know-how-much-you-oweThe only good reason where you will be required to sell your family residence when you declare bankruptcy is if you have equity in the home so that it is considered an asset. But exactly how does this work? What is equity? How much equity can make it an asset? We receive the concerns frequently about Bankruptcy. So here are a few good examples to show you how it all works and really help you understand Bankruptcy. Bear in mind if you wish to know more relating to Bankruptcy and residential properties feel free to get in touch with us here at Bankruptcy Experts Bunbury on 1300 795 575, or check out our website: www.bankruptcyexpertsbunbury.com.au

Case Study 1. (Tanya & Matt).

5 years ago Matt and Tanya bought a house in a mining town, they moved there for work during the mining boom therefore prices were high, and life seemed great. Having said that in recent years the work has dried up, prices have gone down and their debt has just kept increasing. Now they are needing to look at Bankruptcy due to substantial financial debts and mortgage.

They purchased the house for $450,000, and they have $80,000 in various other unpaid debts.

They definitely wish to keep their home but question if they could. They know that house prices, if anything, have declined in the region in the last 5 years so to be safe they think that their house is currently only worth $450,000 after all these years. To make sure they browsed www.realestate.com.au sold category of the website to see what other properties in the streets close by have sold for lately.

Over the past 5 years they have just been paying off the interest, so they still owe the initial $450,000.

Current House Value = $450,000.

Current Mortgage Value = $450,000.

Net Equity Value = $0.

Because there is no equity within this specific residential property the trustee will not ask Tanya and Matt to sell their home when they declare bankruptcy, so long as they keep up the mortgage payments then all will be fine for them for the 3 years they remain in bankruptcy.

At the end of the bankruptcy time period the trustee will contact them and ask if they want to take control of ownership of their house again and provided that it has not increased in price over the 3 years they have been insolvent they will be requested to make an offer to have their home back. This is normally somewhere around $3,000 and $5,000 to cover the legal fees of changing the land title deed etc. This was a fairly basic sample to demonstrate how a home may be considered by a trustee when there is no equity involved.

Case Study 2. (Bill & Michelle Johnson).

2 years ago Bill and Michelle bought a townhouse in a nice suburb of Bunbury for $850,000. They tipped in $50,000 as a down payment and now the townhouse two years later is valued at $900,000.

Current House Value = $900,000.

Current Mortgage Value = $800,000.

Net Equity Value = $100,000.

Due to a recent business problem Bill is about $240,000 in the red. Michelle who carries out work in banking has a separate job and no other debt besides the mortgage. Bill can not pay his financial obligations so he is taking a look at Bankruptcy. Michelle is worried that she too may need to file for insolvency or be driven into it because of the home loan.

Within this specific case the trustee is required to gain access to or get their hands on Bill’s share of the equity which is $50,000 less selling costs. These professionals might carry this out in a few ways; 1. Have them sell off the home. 2. Ask Michelle to purchase Bills half of the equity. 3. keep them in the home – but it’s very unlikely with this situation that the trustee would be happy to keep Bill and Michelle in the home considering that there is simply too much equity.

So Michelle might have the capability to acquire Bill’s percentage of the equity by coming up with $50,000 and buying out Bills’ fifty percent and from that time its now 100 % Michelle’s property.

Property and Bankruptcy in Australia is complex and complicated. These two examples above are simply the tip of the iceberg as far as your options in Bunbury are concerned. If you must know more about Bankruptcy and residential properties feel free to get in touch with us here at Bankruptcy Experts Bunbury on 1300 795 575, or take a look at our website: www.bankruptcyexpertsbunbury.com.au.

bankruptcy

Bankruptcy Problems? Did you know that your Bankruptcy period could be extended?

My objective today is to try and inform you regarding possible problems you could have with Bankruptcy so that you can avoid making errors!

When it includes Bankruptcy, there is a great deal of difficulty and misinformation due to how complicated it can be, and how emotionally charged individuals are whenever they are going through it. Here at Bankruptcy Experts Bunbury we absolutely intend to ensure people realize that if you make errors it could be stretched from 3 years to 5 (or even 8) years!

Yes, this suggests that you will stay even further in the ‘Bankruptcy limbo’ so stay clear of setting off any one of the following aspects– because if you do, then Bankruptcy becomes much more tough.

The basic reason that a Bankruptcy term will be prolonged is if you behave dishonestly or unethically.

11111

MINOR BREACHES– Extend to 5 Years

As I said, Bankruptcy is complex, so just ensure you act honestly. Before entering into insolvency you have to ensure that you declare everything– simply because if it is found that you made a special payment, or entered into an underestimated transaction this will be a minor breach and will prolong the term. On top of that, you have to make sure that you stay clear of certain aspects while you are insolvent, so please:

– Do not serve as a Director of a company.

– Do not leave Australia without the permission of your Trustee

– Do not acquire credit more that the prescribed amount

– Do not fail to show up at a meeting of your lenders

– Do not fail to disclose a beneficial interest or asset

– Do not fail to go to an interview arranged by your trustee without having justifiable explanation.

MAJOR BREACHES– Extend to 8 Years.

So when it relates to Bankruptcy, there are some areas that if you are in violation can effectively end up prolonging the term to 8 years. This is certainly something you will want to avoid. So please, while Bankrupt:

– Do not fail to give written explanation to the trustee regarding any issues developing from property or earnings.

– Do not acquire more credit than the prescribed amount

– Do not leave Australia and fail to return when asked by the trustee.

– Do not refuse to sign a file after the trustee has requested you to sign it.

– Do not fail to disclose a beneficial interest in an asset.

– Do not fail to reveal the reason of any money invested or property sold 5 years prior to bankruptcy

And furthermore, if before insolvency you did any of the following:

– Deliberately provided any false or misleading information to your trustee

– Participated in a transaction, or extreme payments into your superannuation fund with the intention to overpower lenders

Bankruptcy and these forms of term increases in Australia are always challenging and intricate, and sadly, what I have just listed is only the tip of the Iceberg. If you need to understand more about Bankruptcy feel free to talk to us here at Bankruptcy Experts Bunbury on 1300 795 575, or go to our website: www.bankruptcyexpertsbunbury.com.au

bankruptcy

Bankruptcy in Bunbury – Worried about what will happen to your business?

Among the most significant concerns we get when it comes to Bankruptcy is if you will lose your business if you go bankrupt. The short answer is no, you are not likely to lose your small business unless you need to.

362999605When it relates to Bankruptcy, if you are a manager of a company any shape or size you can retain your business if you want to, often a failing company can pressure someone into bankruptcy, so in light of those circumstances it might be better to let the business go. In Bunbury, enterprises that become insolvent have a few options like liquidation, voluntary administration and more. So keep in mind that it is people who go bankrupt not businesses.

Bankruptcy is a complicated area so get some qualified advice on this one, particularly if you have a business. Generally speaking, the monetary debts in a business and individual debts go together when a business owner declares insolvency.

Are you a company Director?

There are a few crucial implications for directors of companies when it relates to Bankruptcy in Bunbury: if you are bankrupt you can not be a director of a company – so this means that if you have a pty ltd company you absolutely will be required to stop working as a director as soon as you’re insolvent.

For some business owners, bankruptcy impacts their ability to run the business due to the licensing matters. Such as, if you operate a building business, your license will be suspended once you’re insolvent and as a consequence you can not trade without that license, so make sure you are asking about the right inquiries when it comes to licenses and Bankruptcy in Bunbury.

Having said that if your business is not impacted directly by such concerns, then you’ll want to reorganize the way you operate your business. There are points to consider when and if you go bankrupt as a business owner: you can not acquire loads of financial debt in your business, then go bankrupt and after that open the doors the following day like not a single thing had occurred. There are laws in place to put a stop to what is referred to as phoenix companies appearing out of the ashes of an old company.

Having said that, it’s just an issue of speaking with the right people about Bankruptcy. For instance, some of the most typical presumptions is that you need to have a liquidator. However a lot of the time you are going to hear this from a liquidator who stands to gain a large payment- so beware with exactly where you acquire recommendations from and be careful about other individuals who might have their own agendas.

An essential point to keep in mind with Bankruptcy is to be mindful of general or simple methods to your business and Bankruptcy because each business is going to be different, and if you are not vigilant there may be some substantial implications. Often the right advice for one small business owner is the wrong recommendations for the other. There are a few basics nonetheless, that you might benefit from. There is no mandatory reduction in the size of your business when you are bankrupt. You can still employ and hire new personnel. And you can easily continue to deal with your suppliers under certain situations, the main one being you will need to satisfy the payment terms agreed upon in light of your bankruptcy.

So when it comes to Bankruptcy, don’t get overly overwhelmed concerning what you can and can’t do as a business owner, just get the recommendations that is right for your circumstance. If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to speak with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au.

bankruptcy

Bankruptcy in Bunbury – Concerned about losing your home?

Bankruptcy in Bunbury is a challenging procedure, but I recognize from meeting with thousands facing the possibility of bankruptcy for many years that the most terrifying facet is the distress of losing the family residential property.

untitled-1Almost everyone is on an emotional degree attached to their house – it’s where the kids have grown, it’s where you sleep, eat, relax and built it from a house to a home. So it is scary to feel that a thing like personal bankruptcy can move in and take all that away from you.

So, Could you lose your home if you declare bankruptcy?

My response is ‘maybe’– I know it is not a helpful response, but it will really based on your unique conditions. People usually think that losing your house is imminent and just one more part of Bankruptcy– but don’t drive yourself crazy just yet, because there could be hope.

So how does personal bankruptcy view my house?

The first thing to understand is that homes are viewed as assets– but no two houses will be the same. What you ought to grasp is that whenever it comes to Bankruptcy, they appoint a trustee to oversee the procedure. Their role is to make certain that they can settle as many of your debts with your asset. This is completed via equity– and if there is no equity in your house then there is no true advantage to selling it.

Trustees not selling residential properties is occurring considerably more since the GFC as house prices in many places have been heading south so what you paid 4 years ago may not automatically demonstrate the price nowadays.

But the biggest part with Bunbury and Bankruptcy is that you definitely should get an expert to assist you through this process, there are a number of factors in these scenarios that ought to be taken into consideration.

For example, if you have no equity in your house you need to consider your home loan. With loans, you are basically just a customer of the financial institution and they will also have a preference– will they wish to take your home back, or do they prefer you to keep the home loan? You might feel that they would certainly want to just take the house to steer clear of the risk, but honestly banks are run as a business, and if these guys can leave you with a mortgage to keep generating income off you, they generally will provided that you keep up to date with your monthly payments. But it is nonetheless up to the trustee to determine that there is lots of equity in your house the trustee will force you and the bank to sell off your home.

What is my house worth?

Usually with Bankruptcy it is difficult to know what your home is really worth– indeed, you may have an idea if you were selling off your house, but the way that this is worked out in insolvency is generally different. When you declare bankruptcy you may need to note down the value of the house, and the amount of money that you owe– and you can figure this out by utilizing a valuer. Doing this is going to be much more precise than using your ‘gut feel’ or a real estate agent. The other important factor is that you will need to ask your valuer for two prices– one for a Quick Sale, and one for a non-time sensitive sale. This will certainly give you 2 realistic figures that can assist you to correctly value the property and realise its worth even when you are being pressured to sell promptly.

When it comes to Bankruptcy and houses, an additional major point to consider is ownership, in a lot of cases homes are bought in joint titles. In other words a couple may have bought a house 50/50 utilizing both salaries to make the repayments. If one party declares bankruptcy and the other party does not, the equity is solely factored on the 50 % of the home. With Bankruptcy, this is merely one of quite possibly various situations that are probable when it is in regards to the family home. Keep in mind the non-bankrupt party can buy the bankrupt’s part of the house in insolvency too. I should repeat this but get some recommendations on this area of Bankruptcy given that it is very complicated and each and every situation is different.

If you truly want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then do not hesitate to reach out to Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au.

bankruptcy

Bankruptcy in Bunbury – Who do I speak to?

Should I talk to my financial advisor about Bankruptcy?

MegaphoneThe response appears obvious doesn’t it: if anybody understands your financial situation well in Bunbury, It’s going to be your accountant. Nonetheless, the short answer is a resounding No! It’s certainly not that your accountant may not have your best interests in mind when it comes to Bankruptcy, it’s that his experience depends on helping you save you money at tax time, lowering your tax liability and lodging your BAS.

Most accounting certifications will dedicate very little to no time on bankruptcy, it’s normally undertaken as a post graduate specialized course for those who intend to do work in the sector. Unless your financial advisor is a bankruptcy expert, he would not know a lot about the effects of Bankruptcy. I can assure you bankruptcy specialists don’t know much about tax returns or BAS. If you do happen to identify an insolvency accounting firm in Bunbury, they have the inclination to be big firms with extremely nice offices who charge accordingly.

Should I talk with my Solicitor about Bankruptcy?

No! You can talk to your solicitor in Bunbury but more than likely it won’t do you a great deal of good. Solicitors are absolutely proficient at performing things lawyers do, like helping you to do your Will and buying your house and attempting to keep you out of court if you’re fortunate. When it comes to Bankruptcy, the professionals in Bunbury typically have either a legal or accounting qualifications, and the primary reason for that is simply that you can not start off in the post graduate study to become a qualified bankruptcy specialist except if you possess a law or accounting degree.

Just as there are a number of bankruptcy accountancy firms, certainly there are few bankruptcy legal businesses in Australia, and indeed if you find one you will pay out an adequate price for their knowledge.

Should I talk to a financial counsellor about Bankruptcy?

Yes! There are a number of financial counselling solutions to assist you through this, they have no hidden agendas and they’re a great option for letting you to evaluate your case when it comes to Bankruptcy. If you turn out stressing out constantly, not sleeping, not eating or over-eating and contemplating finance strains constantly, then obtain some help.

There are also charitable organizations around Bunbury like Lifeline that provide a terrific service. They will certainly be a sounding board if you just need a person to review with you what your choices are. Don’t let your financial difficulties destroy your life – at the end of the day, it’s just money.

If you really want to find out more regarding what to do, where to turn and what issues to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au.

what-happen-to-my-income

Bankruptcy in Bunbury – What happens to my income?

Money is always a concern with Bankruptcy, so I want to talk you through some of the factors around income and Insolvency

what-happen-to-my-income

Bankruptcy in Bunbury is always going to be complex and troublesome, specifically because it involves money and people’s livelihoods. People regularly ask us how bankruptcy will influence their earnings, because bankruptcy is going to limit just how much money you can make. When it comes to Bankruptcy it is mostly going to think about your complete income and the amount of dependants that you have

How is this calculated?

You need to know about Bankruptcy that there are actually established quantities that you can make– yes, this suggests that you will certainly not be left broke, but nor does this mean that you could be earning a six figure salary and not be paying back bankruptcy debt.

Net income is the pre-tax/ in the hand amount you gain each year.

A dependant is a person who lives with you and makes below $3,124 per year (regardless of their age).

Could this be increased?

Yes, under some scenarios you can get a hardship variation that raises the threshold quantity, if you have financial commitments in Bunbury like medical, childcare, considerable travel to and from work, or a situation where your partner used to be employed but is now not able to support the household income.

Could my boss be informed about this?

No, the good thing about Bankruptcy is that your workplace will not be notified when you declare bankruptcy.

What about child support?

Child support is always taken into consideration in insolvency– this means that if you get child support, that is not factored in as income. Having said that if you pay child support this will be often obtained from your net income amount, for instance if you provide $5,000 child support each year and you have no dependents living with you then your changed net income limit will be $55,332.10.

What about tax-time, do I still get money back?

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will very likely be taken by the ATO whilst you are insolvent to contribute toward your tax bill. If you do not have a tax bill then you will keep your tax return provided that doesn’t take you over your threshold income caps.

So what is regarded as income?

Certainly there are a lot more issues surrounding income and Bankruptcy– particularly because many people will justify with what is thought of as ‘income’- if you’re not exactly sure, it’s a great idea to get professional personal bankruptcy advice in Bunbury.

Easily one of the most important aspects of Bankruptcy is that you ought to get advice as early as possible as it will make sure you are taking the best way. It is always going to be best to be over prepared because when it concerns Bankruptcy knowledge is everything, and as soon as you have submitted the documentation it’s far too late to change your mind.

If you believe when it comes to Bankruptcy, your circumstance is more complicated than what is mentioned above, then I would highly recommend that you get specialist recommendations in Bunbury.

If you wish to find out more about what to do, where to turn and what complications to inquire about with Bankruptcy, then don’t wait to contact Bankruptcy Experts Bunbury on 1300 795 575, or explore our website: www.bankruptcyexpertsbunbury.com.au.

bankruptcy

Bankruptcy in Bunbury – Which Path will you take?

There are always going to be options and judgments in life, and Bankruptcy is no different!

You really have to make certain you understand as much as possible about Bankruptcy in Bunbury. So when it boils down to Bankruptcy in Bunbury, there are lots of alternatives that we can have depending upon who we are, who we contact, and simply what has happened. So I want to inform you about 3 substitutes to Bankruptcy that people are often confused about– Debt Consolidation, Personal Insolvency Agreements, and Debt Agreements– with any luck I can assist you become less lost when it comes to Bankruptcy and your selections.

CHOICE 1 – Debt consolidation.

This is where you can have an agency wrap up your financial debts into a single package.

PROS:

Can help save money on interest.

CONS:

There are lots of fees required (Often surpassing the interest saved).

Won’t assist if your credit rating is poor.

Won’t give you a fresh start– simply tidying up the old financial obligation.

When it concerns Bankruptcy in Bunbury, I would like you to become conscious that everybody who offers you recommendations is going to possess some kind of viewpoint (even myself) consequently be sceptical with something a person says to you about Bankruptcy. This is certainly most important when you look at Debt consolidation because if you speak with somebody who works for one, they will of course inform you that it is the best way since they want your money. Every loan that they assist you wrap up into just one neat and simple bundle is going to be another charge– there is a reason they are such a significant money-making market. But, it can still be a good alternative for you if you believe that getting all your financial obligations in the one place is going to benefit – because even a small amount of interest saved over years easily adds up.

But chances are that in the event that you are reading this, you have already attempted this step, and discovered that your credit rating is so weak that you can not get a combined loan, that you are pretty much too far advanced and the small amount of interest saved won’t make a huge difference. Most likely you’ve just had enough of the telephone calls, demands and feeling of desperation that debt brings– and you are looking for a resolution that can provide you a clean slate.

CHOICE 2 – Personal Insolvency Agreements.

A PIA is a versatile way to lay out your debts without ending up being bankrupt, often it is a way of minimizing the quantity owed and organising how and when everything is to get paid. It does not reach personal bankruptcy, but has a number of very similar aspects and includes designating a trustee to control your property and develop a proposal to your creditors.

It is not Bankruptcy, but rather an ‘act of Bankruptcy’ which implies that if you fail to properly set up a PIA a creditor can easily apply to a court to declare you Bankrupt and push you to follow those actions. So it may seem to be that PIA is a good choice when it involves Bankruptcy, but it is rarely an easy process to really get all your creditors to agree– and if you don’t get at least 75% of them to agree, the PIA fails and this will complicate the concern with Bankruptcy.

OPTION 3 -Debt Agreements.

Debt agreements are another type of binding understanding between borrower and creditor similar to a Personal Insolvency agreement.

So when it concerns Bankruptcy in Bunbury, what’s the significant contrast then?

Well the initial hurdle is that it depends on the amount of salary you are handling, and certain other thresholds– If you come under the requirements you can lodge a debt agreement or a PIA, but if you are over your only alternative is a PIA. Similarly, you can not have had similar financial concerns in the last 10 years for a Debt Agreement, but it is only 6 months for a Personal Insolvency Agreement.

So with Bankruptcy, what is the benefit to a Debt Agreement? The debt agreement is often a lot faster to put together and are a bit simpler when it comes to regulating trustees and dealing with the government. It can also make things much easier to keep running your small business or be a director of a company.

When it concerns Bankruptcy I’ve heard of lenders opting for less than 80 % on infrequent occasions, but that normally only occurs with a public company going into receivership with outstanding substantial sums of money (the sort that makes the news). If you are owed $10million and you realize the folks who owe you the money have a group of brilliant attorneys and some very smart frameworks in place and they offer 5 % of the financial debt, you may accept it and be grateful. Unfortunately, ordinary punters like you and me in Bunbury aren’t going to get that privileged!

So in summary, you have 3 options to Bankruptcy– Debt Consolidation, Personal Insolvency Agreements, and Debt Agreements.

I would definitely suggest beginning by taking a look at a debt consolidation– but if you are too much in debt, it probably won’t make too much difference and you will be inundated with charges.

Then, you ought to look at whether you are eligible for a Debt Agreement. If you aren’t, take a look at a Personal Insolvency Agreement. But no matter which one you opt for, you should be realistic with your expectations considering that when it comes to Bankruptcy nothing is straightforward.

If you wish to find out more about 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.

BDO explains the types of options to deal with debt

Bankruptcy in Bunbury – What Debts are removed by Bankruptcy?

So how much will actually be cleared away? What financial debts will I still be left with? Is Bankruptcy actually going to assist me get a fresh start?

When it concerns Bankruptcy in Bunbury I commonly have individuals either worried that their debt won’t be taken away, or will have no idea that bankruptcy does not actually pay for every little thing. So before you get too caught up with Bankruptcy please make certain that the sort of financial obligation you possess is truly one that Insolvency will wipe clean!

Overall, when it relates to Bankruptcy, most personal debts are wiped out, but I have produced a helpful table to help you out:

So as you can see, some of the exemptions are Centrelink Debts, Child Support, Court fines (like speeding fines) and any financial debts arising from uninsured Motor-vehicle claims and educational financial debts which include HECS or FEE-HELP. These financial debts are not cleared away when you file for insolvency.

But what happens with Bankruptcy and Secured Debts?

A secured debt is financial debt that has some type of security connected to the financing– like a car or house loan where the asset is the security– the big difference with these types of debts is that when you eliminate them you will lose the security.

So if you possess a $30,000 vehicle loan, you can wipe the debt through insolvency by simply giving the car back. This is just one aspect that, when it comes to Bankruptcy, it is necessary to get experienced help – like that offered at Bankruptcy Experts Bunbury because it isn’t always as simple, but you need to be practical and remember that you can not always retain the possession. Don’t hesitate to call us at Bankruptcy Experts Bunbury if you have any kind of queries on 1300 795 575. Or don’t hesitate to go to our website: www.bankruptcyexpertsbunbury.com.au

What about my business or Company debts?

In some cases when it involves Bankruptcy we can aid you with your business liabilities, call us concerning this first. Keep in mind bankruptcy applies to an individual not companies, trusts or businesses. Normally you may have to liquidate a company to take care of the liability this way. When it concerns Bankruptcy, it can be a complex aspect, so always remember there are ramifications for a business owner such as insolvent trading.

So what about Tax Debts?

Both business and personal debts owing to the ATO can be removed with insolvency. If you have a business with any kind of debt get some guidance because it is not often so simple when it involves Bankruptcy because every single debt is going to be varied which will affect the degree that it could be cleared, and the effects it will have for Bankruptcy.

At Bankruptcy Experts Bunbury we specialise in business and personal debts and can better explain the exceptions to bankruptcy and what this will mean for you and your liabilities. So call Bankruptcy Experts Bunbury if you have any queries concerning Bankruptcy on 1300 795 575. Or don’t hesitate to go to our website: www.bankruptcyexpertsbunbury.com.au

how-to-provide-security-over-assets-or-a-guarantee-to-a-lender

Bankruptcy in Bunbury– Voluntary or involuntary bankruptcy?

When it involves Bankruptcy, there are 2 kinds of people– those who have made a decision to declare bankruptcy and people declared insolvent by others (Their creditors).

how-to-provide-security-over-assets-or-a-guarantee-to-a-lender

When it comes to Bankruptcy in Bunbury, normally lots of people aren’t aware that there is both voluntary, and involuntary bankruptcy– and this is very important because in some cases individuals don’t become aware that others can declare them insolvent– and that if this happens you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs when an individual you owe money to calls for the court to declare you bankrupt. This will lead to you being issued with a notice that, typically when you get one of these sorts of notices, you have 21 days to pay all the debt. If you do not, then the creditor returns to the court and asks the court to supply a sequestration order that declares you bankrupt. During the course of this time you will have a brief window wherein you can argue and put your case forward as to exactly why it ought to not advance to the next level and why you ought to not be declared insolvent. Once the determination has been made, you will be insolvent and going through the same measures as those who took that path freely.

Having said that, when it concerns Bankruptcy you can picture that the involuntary procedure is full of much more tension, worry and concern as other people are taking control of your life. My biggest tip with Bankruptcy and involuntary bankruptcy is that if you think that it might occur, get qualified advice on bankruptcy as early as feasible, even if you are just stressed over debt and fear that it could continue to escalate. I am sure that you can picture that it is much better to realise what you can and can’t do before being forced into that scenario. The moment you are insolvent, it’s normally far too late to act.

What next?

Well if you have been declared bankrupt, you will not really have many options but to move through the process and you will certainly want to get qualified guidance to make sure you are declaring properly, not breaking any rules, and will have the bankruptcy discharged as quickly as feasible.

Fortunately is that in Australia the arrangements for bankruptcy are actually really generous: you could declare bankruptcy owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared with countries like the United States, our insolvency laws are rather good.

I do not claim to know why that is, but a couple of hundred years ago debtors went to prison. These days I presume the government believes that the quicker it can get you back on your feet working and paying income taxes, the better. It makes more sense than locking you up which costs the taxpayer anyway.

Personal bankruptcy will clear away the huge majority of your several debts, (including tax debts to the ATO) but bear in mind the few exceptions- the primary ones being Centrelink Debts, Court Fines like parking and speeding fines, HECS or Fee Help loans, and money to pay for a car accident if the car was not covered.

There is a lot more that can be said about this and Bankruptcy generally so if obtaining some guidance, bear in mind that there are always options when it involves Bankruptcy in Bunbury, so do some research, and good luck!

If you want to find out more about precisely what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hold off to get in contact with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au.

Bankruptcy Bunbury

Bankruptcy in Bunbury – Changes that can help Small Business and Entrepreneurs.

office-computer-night-536907925-hero-images-getty-compressor

Written 15th March 2016 – By Charles Bosse– If reading this greatly after this time, please go through a few of our other blogs to validate the data is still up to date. Do you realise just how much Bankruptcy in Bunbury is likely to be changing? The Australian Government at the end of 2015 developed some radical plans and prospective modifications to the Bankruptcy Laws in Australia, especially when it comes to the duration of bankruptcy. At the moment, there is a minimum amount of time that you will need to stay insolvent, having said that, this 3 year duration may well be decreased to just 12 months. So if you are looking at going bankrupt, these changes are going to be relatively significant to you! Exactly how did this all come to be? Well, Mark Carnegie (an expert in this field) remarked back in December 2015 in the Financial Review that there was going to be recommendations for “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”. What trouble is he attempting to fix? At the moment, the laws don’t have enough protections, to the extent that Mr Carnegie, went on to say in the Financial Review that providing security to family assets was necessary since “banks just terrorise small business and the mental health consequences to society are enormous”. The issue is Australia’s bankruptcy laws prevented investors from supporting start-ups, and for that reason mentoring had been “driven out of the system” and too many individuals are too worried to try and invest or attempt to run a small business. “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”. That implies that at the moment, the current laws are costing the overall economy and they may work for you, however they can be exploited and in some cases the innocent fall within the gaps and get unjustly penalized. What is being proposed? The proposal is to have the 3 year bankruptcy duration reduced to just 12 months when there is no sign of fraud or unethical behaviour. These improvements will mean a lot for Bankruptcy and will likely take at the very least 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a term that includes every one of the negative factors. So when it concerns Bankruptcy, this indicates that it will deal with behaving dishonestly, concealing assets, taking reckless risks, acting unethically or just commonly trying to con others. One proposed concept is that while they are decreasing the amount of time for those behaving truthfully, they may actually implement a counter proposition to pinpoint those behaving significantly dishonestly and raise the time. Certainly there are already some regulations in position for whenever you do not follow certain guidelines (and I recommend you to learn more about Bankruptcy to make sure you don’t unintentionally break these guidelines) but it will be interesting to see how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be terrific for small business and I really hope that you read these alterations to Bankruptcy and are getting as thrilled as I am. These proposed changes will benefit businesses because it can motivate additional people to get engaged and take calculated risks– There will nonetheless be penalties in effect, but it will not be unfairly penalizing those who make genuinely honest miscalculations. Most business owners I help with Bankruptcy, are hardworking, tax paying, businesses that are keeping this nation going and so I am thrilled to observe what will be taking place next with this, and how it will affect Bankruptcy. Bankruptcy helps save lives, and it can save yours. If you really require some assistance with your financial debts in Bunbury or are just considering Bankruptcy, feel free to phone us here at Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au