Bankruptcy in Sydney - Who exactly do I talk to?

Should I speak to my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody knows your financial circumstance well in Sydney, It's going to be your accountant. However, the short answer is a definite No! It's not that your accountant doesn't have your best interests at heart when it comes to Bankruptcy, it's that his proficiency lie in helping you save you money at tax time, reducing your tax liability and lodging your BAS.

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

Should I talk with my Solicitor about Bankruptcy?

No! You can speak to your solicitor in Sydney but more than likely it won't do you much good. Solicitors are certainly good at doing things lawyers do, like assisting you do your Will and buying your house and keeping you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Sydney normally 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 until you have a law or accounting degree.

Just as there are a handful of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you locate one you will pay a considerable price for their expertise.

Should I speak to a financial counsellor about Bankruptcy?

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

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

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

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

When people in Sydney come to me hoping to talk about Bankruptcy, they are usually filled with questions. The internet has lots of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make it more clear. One of the most usual problems is 'Will I lose my business if I declare bankruptcy?' The concise answer is no. If you are an owner of a business any shape or size you can maintain your business if you want to. In Sydney, businesses that eventually are insolvent have a few options for instance liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complex area so get some expert 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 declares bankruptcy. There are some vital implications for directors of companies when it pertains to Bankruptcy in Sydney: A bankrupt can not be a director of a company, so if you have a pty ltd company you will definitely need to retire as a director soon after you're bankrupt.

A limitation that applies when you are actually bankrupt as a business owner is that you can be in your own business as a sole trader only. Certainly there are things you will need to make known as an aspect of that but in essence you can still run your business. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. For instance, if you run a building company, your license will be suspended once you're bankrupt and consequently you can no longer trade without that license, so make sure you are asking the ideal questions when it concerns licenses and Bankruptcy in Sydney.

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

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

When it comes to Bankruptcy, I consider that giving generic advice in this area is potentially damaging as it can have very major implications for directors and business owners. This is since it is just one of those cases where what the right guidance for one business owner is the inappropriate advice for the other. There are some fundamentals however, that you may benefit from. There is no limit to the size of the business you run while 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 extremely stressed about what you can and can't do as a business owner, just get the right advice ... If you would like to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Fresh Start Solutions Sydney on 1300 818 575, or visit our website:.freshstartsolutions.com.au/bankruptcy-Sydney

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

When it comes toBankruptcy Sydney, often people aren't aware that there may be both voluntary, and involuntary bankruptcy - both of these have distinct methods and policies.

Involuntary bankruptcy arises when somebody you owe money to involves the court to declare you bankrupt. Normally when you get one of these kinds 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 provide a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the documentation in and then you are bankrupt.

You can challenge a bankruptcy notice by going to court shortly after the 21 days have expired and put your case forward, to avoid it going to the next level. Other than the way you became bankrupt there is in fact no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're conducted to in the same way.

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this process is incredible. If you think you are more than likely to be made bankrupt by someone, get some suggestions 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 someone bankrupt you. Once you are bankrupt, it's usually far too late.

Voluntary Bankruptcy

On the other hand, when it comes to Bankruptcy, sometimes there are times that it is the best option. So you may have to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for everybody of course, but typically I find that one way you could work it out is to figure out how long it will take you to pay each one of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may serve to help you make that decision, and help you to understand Bankruptcy.

Once, I had an 80 year old pensioner, who spoke to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the rate she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can help you think this through. If you move house and forget to pay your $30 phone bill for 6 months more, it's very likely the telephone company will default your credit file. That default will sit on your file for 5 years, so for $30 you can have your credit file very seriously damaged for that period of time - and all of this will affect how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is not fair. The punishment doesn't seem to equate to the crime in my book. So if you currently have defaults on your credit report for 5 years, keep in mind that bankruptcy is on your credit file for a total 7 years then its rubbed out completely.

So if your credit rating is a big aspect in trying to decide whether to enter into a Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they will all sit on your credit file for a total of 7 years. The biggest variation is that with a DA or PIA you repay the money and still have it on your file for 7 years.

Bankruptcy

I have talked about the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element most people are afraid of when they come to me to discuss their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the provisions are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all finished with no strings attached. Compared to countries like the United States, our bankruptcy laws are really generous.

I don't pretend to know why that is but a few hundred years ago debtors went to prison. Nowadays I suppose the government thinks the sooner it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which in turn costs the taxpayer anyway.

Bankruptcy wipes all your debts including ATO debts with the exception of a few things:.

·         Centrelink Debts, Court Fines like parking and speeding fines.

·         HECS or Fee Help loans.

·         Money to pay for a car accident if the car was not insured.

There is far more that can be said about doing this and Bankruptcy in general but the purpose of this blog was to help you decide between a few possible options. When getting some advice, bear in mind that there are always alternatives when it involves Bankruptcy in Sydney, so do some legwork, and Good luck!

If you would like to find out more about just what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to speak with Fresh Start Solutions Sydney on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Sydney

Bankruptcy in Sydney - Will my income be influenced if I go bankrupt?

Bankruptcy Sydney is a complicated process, and you should make sure you get the right suggestions. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you need to know about going bankrupt is there is no rule on how much you can earn. However, I will mention that your income is a serious consideration when working through when it comes to Bankruptcy.

The very first thing you need to know about this area of Bankruptcy is the amount you can earn before you start paying back money to your creditors via your trustee (see table below).

Net income is the pre-tax/ in the hand portion you earn each year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can look for a hardship variation that increases the threshold amount, if you have costs in Sydney such as medical, child care, major travel to and from work, or a scenario where your partner used to work but is not able to contribute to the family income.

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

There are much more issues covering income and what is or isn't considered income - if you're uncertain, it's ideal to get specialist advice. The reason you have to consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases not an economically practical 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 contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund provided that doesn't take you over your threshold income limitations.

If you feel like when it comes to Bankruptcy, your issue is more challenging, then simply get qualified advice in Sydney. I may sound like a broken record, but remember that it's always a great idea to work through these options prior to declaring bankruptcy, since once you have filed the paperwork it's far too late to change your mind.

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

Bankruptcy in Sydney - Choices, Choice, Choices

When it comes down to Bankruptcy Sydney, there are a bunch of choices that we get given depending upon who we are, who we speak with, and what exactly has happened. The most common confusion 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 Sydney, most 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 assure you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for aiding you wrap most of your credit card and personal loans into just one neat and tidy bundle.

I hate to tell you this but these guys won't be doing it free of charge. Please do not misunderstand me: if you believe your financial issues in Sydney may be solved by paying less interest, then go on and investigate the choices. Even a tiny amount of interest saved over years rapidly adds up.

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

• Your credit rating is not good, and your credit file already has defaults 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 a tiny bit of interest simply won't make a great deal of difference,.

• You've most probably gotten to the stage where you've had enough, you're emotionally worn down, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

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

Overall flexibility is the main point 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 firm that advertises on TV. Ultimately this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these guys work out a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or you can offer them assets as an alternative to cash. This can sound alright when it comes to the troubles with Bankruptcy - that is up until you realize that one of the difficulties with PIA's is that 75 % of the people you owe money to need to come to an understanding the deal. If they don't, your plan is denied or needs to be renegotiated.

Generally the people you owe money really want all their money back and also interest. Sometimes they'll opt for less than the amount you owe them - it's typically a percentage of the debt - but allow me to stress this part: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will really 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 opting for 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 shrewd 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 Sydney aren't going to get that lucky!

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to call Fresh Start Solutions Sydney on 1300 818 575, or visit our website:freshstartsolutions.com.au/bankruptcy-Sydney

Bankruptcy in Sydney - Are you going to get bitten?

When people in Sydney ask me about Bankruptcy, I let them know the time-honored 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 view one last sunset before he passes away. The boy was reluctant, but the rattlesnake vowed not to bite him in exchange for the ride. They travelled together only for the snake to ultimately attack the boy despite his assurance not to do so. The snake's response was 'You knew what I was when you picked me up.

Receiving the right financial advice in Sydney when it pertains to Bankruptcy is a whole lot like that little boy's encounter, fraught with risk and danger, and usually skewed for the benefit of the individual offering the advice. In most cases you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I learned the problem with receiving financial advice as a teenager, and it has been necessary to Bankruptcy. I'd been keeping my nose to the grindstone for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were fairly high and investing your money was really profitable. I spent time researching numerous 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 nice suits and plush offices, they all seemed to exude confidence and have all the solutions. What struck me was that they all had a truly different idea of what I should do. This frustrated me a lot that it put me off the whole idea of selecting any of them.

I'm sure by now you have read enough on the internet to be totally lost about Bankruptcy and precisely what to do. It would probably be easier for me to help you understand the nature of the financial snakes you might be grasping while you are attempting to get to the bottom of your financial problems in Sydney. Basically, you have to try and figure out what your overarching choices 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 Sydney for your requirements. Basically, you have 3 options for who to turn to.

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

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

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

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