Bankruptcy in Darwin - Who exactly do I speak to?

Should I talk with my accountant about Bankruptcy?

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

Most accounting degrees will put in hardly any to no time on insolvency, it's generally performed as a post graduate specialty program for those who wish 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 Darwin, they tend to be large firms with very nice office spaces who charge accordingly.

Should I talk to my Solicitor about Bankruptcy?

No! You can talk with your solicitor in Darwin but more than likely it won't do you much good. Solicitors are certainly good at carrying out 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 comes to Bankruptcy, the specialists in Darwin tend to have either a legal or accounting qualifications, and the reason for that is simply that you can't enrol in the post graduate study to become a qualified insolvency practitioner unless you have a law or accounting degree.

Just like there are a small number of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay a substantial price for their expertise.

Should I speak to a financial counsellor about Bankruptcy?

Yes! There are plenty of financial counselling services to help you through this, they have no hidden agendas and they're a splendid option for letting you analyze your situation when it comes to Bankruptcy. If you are stressing out constantly, not sleeping, not eating or over-eating and thinking about money pressures continuously, then get some help.

There are also charities around Darwin like Lifeline that offer a terrific service. They will be a sounding board if you just need somebody to talk about with you what your choices are. Don't let your financial issue destroy your life - in the end it's just money.

If you want to learn more about what to do, where to turn and what points to ask about Bankruptcy, then feel free to speak to Bankruptcy Experts Darwin on 1300 795 575, or visit our website: www.bankruptcyexpertsDarwin.com.au.

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

When people in Darwin come to me looking to speak about Bankruptcy, they are constantly full of questions. The internet has lots of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make it more clear. One of the most standard worries is 'Will I lose my business if I declare bankruptcy?' The brief answer is no. If you are a manager of a company any shape or size you can maintain your business if you want to. In Darwin, businesses that end up being insolvent have a few options such as liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complex area so get some reliable advice on this one if you have a business. Generally speaking, the financial debts in a business and personal debts go hand in hand when a business owner goes bankrupt. There are a few important implications for directors of companies when it pertains to Bankruptcy in Darwin: A bankrupt can not be a director of a company, so if you have a pty ltd company you definitely will need to resign as a director after you're bankrupt.

A constraint that applies when you are actually bankrupt as a business owner is that you may be in your very own business as a sole trader only. Certainly there are things you should disclose as an aspect of that but in a nutshell you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. As an example, if you run a building company, your license will be suspended once you're bankrupt and consequently you can not trade without that license, so make sure you are asking the ideal questions when it concerns licenses and Bankruptcy in Darwin.

But if your business is not impacted directly by such issues, then you'll have to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not acquire heaps of debt in your business, then go bankrupt then open the doors the next day like not a single thing had happened. There are laws in place to prevent what is called phoenix companies popping up out of the ashes of an old company.

Having said that, it's just a point of talking to the correct people about Bankruptcy. Here in this situation you may think you need a liquidator for your company, and you could be right, but remember that every liquidator is different and have their own motives. Liquidators make money from your liquidation - heaps of money - so exactly what advice do you think you will get?

When it comes to Bankruptcy, I consider that giving generic advice in this area is possibly dangerous as it can have very serious implications for directors and business owners. This is because it is one of those cases where what the right advice for one business owner is the inappropriate advice for the other. There are some fundamentals however, that you may benefit from. There is no reduce to the size of the business you run even though you are bankrupt. You can employ staff. You can constantly deal with your vendors 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 uneasy 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 Bankruptcy Experts Darwin on 1300 795 575, or visit our website: .bankruptcyexpertsDarwin.com.au.

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

When it comes to Bankruptcy Darwin, usually people aren't aware that there can be both voluntary, and involuntary bankruptcy - the two have distinct approaches and guidelines.

Involuntary bankruptcy happens when someone you owe money to applies to the court to declare you bankrupt. Commonly when you get one of those notices, you have 21 days to pay all the debt. If you do not, then the creditor returns to the court and requests the court to issue a sequestration order that declares you bankrupt. A trustee is assigned, and then you have 14 days to get the documentation in and after that you are bankrupt.

You can contest a bankruptcy notice by going to court after the 21 days have expired and put your case forward, to prevent it going to the next level. Apart from the way you became bankrupt there is in reality no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're managed to in the same way.

However, when it comes to Bankruptcy for this, the stress, torment and fear that accompanies this method is incredible. If you think you are in all likelihood to be made bankrupt by someone, get some assistance and act on that advice. Generally I've found it's always far better to know what you can and can't do before you have a person bankrupt you. Once you are bankrupt, it's usually too late.

Voluntary Bankruptcy

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

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

Once, I had an 80 year old pensioner, who came to me once regarding * Bankrupcty tell me that her credit card statement calculated how long her debt would take to pay at the 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 phone company will default your credit file. That default will remain on your file for 5 years, so for $30 you can have your credit file seriously damaged for that period of time - and all of this will impact how you have to approach Bankruptcy.

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

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

Bankruptcy

I have mentioned 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 go over their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this specific country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. As compared to countries like the United States, our bankruptcy laws are extremely reasonable.

I don't pretend to know why that is but a few hundred years ago debtors went to prison. These days I suppose the government feels 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 take care of a car accident if the car was not actually insured.

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

If you want 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 Darwin on 1300 795 575, or visit our website:bankruptcyexpertsDarwin.com.au.

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

Bankruptcy Darwin is a intricate process, and you have to be sure you get the right insight. 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 limit on how much you can earn. However, I will point out that your income is a considerable consideration when working through when it comes to Bankruptcy.

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

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

You can request a hardship variation that raises the threshold amount, if you have costs in Darwin such as medical, child care, substantial travel to and from your job, or a scenario where your partner used to work but is not able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always looked at in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you provide $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are much more issues surrounding income and what is or isn't thought of as income - if you're uncertain, it's a good idea to get professional advice. The reason you need to consider your income as a part of the Big 5 questions here is that bankruptcy is in some instances not an economically sensible option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO while you are bankrupt to add 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 restrictions.

If you believe that when it comes to Bankruptcy, your situation is more challenging, then please get specialist advice in Darwin. I may sound like a broken record, but bear in mind that it's always a smart idea to work through these options prior to declaring bankruptcy, due to the fact that once you have filed the paperwork it's too late to change your mind.

If you intend to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Darwin on 1300 795 575, or check out our website: bankruptcyexpertsDarwin.com.au.

Bankruptcy in Darwin - Choices, Choice, Choices

When it comes down to Bankruptcy Darwin, there are a bunch of choices that we get given depending on who we are, who we approach, and exactly what has happened. The most common trouble I see with Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Darwin, most of the information and facts you receive on this matter will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can promise you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for assisting you wrap all of your credit card and personal loans into just one neat and tidy package.

I hate to tell you this but these people aren't doing it for free. Please do not misunderstand me: if you consider your financial issues in Darwin might be solved by paying less interest, then go on and check out the choices. Even a tiny amount of interest saved over years easily adds up.

Typically I find if you are reading 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 definitely has nonpayments on it so nobody will offer you a loan, consolidated or otherwise,.

• By the time you work all of it out, you're so far down a hole that saving on a small amount of interest simply won't make a great deal of difference,.

• You've most probably reached the point where you've had more than enough, you're emotionally worn down, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail and so on.

Personal Insolvency Agreements

So when it relates to Bankruptcy in Darwin, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability is the main point Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - might I add - regulated trustee featuring the government trustee ITSA, and not a private firm that advertises on TV. Ultimately this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys negotiate 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 might sound fine when it comes to the problems with Bankruptcy - that is until you discover that one of the challenges with PIA's is that 75 % of the people you owe money to need to come to an understanding the deal. If they do not, your plan is rejected or has to be renegotiated.

Generally people you owe money prefer all their money back in addition to interest. Sometimes they'll settle for under the amount you owe them - it's generally 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 actually settle for.

In most cases you'll have to pay back 100 % of the debt owed. This is not just because your creditors are greedy or have a mean streak, it's because the administrators take 20 % of whatever is decideded upon with the people you owe money to. That applies whether you use a private company for this process or ITSA, the government body setup to administer to these PIAs.

When it comes to Bankruptcy and insolvency I've come across creditors choosing 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 smart 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 Darwin 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 contact Bankruptcy Experts Darwin on 1300 795 575, or visit our website:bankruptcyexpertsDarwin.com.au.

Bankruptcy in Darwin - Are you going to get bitten?

When people in Darwin ask me about Bankruptcy, I tell them the simple Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to discover one last sunset before he dies. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They journeyed together only for the snake to in the end attacks the boy despite his assurance not to do so. The snake's answer was 'You knew what I was when you picked me up.

Acquiring the right financial advice in Darwin when it pertains to Bankruptcy is a lot like that little boy's encounter, fraught with risk and danger, and typically skewed for the benefit of the individual providing 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 getting financial advice as a teenager, and it has been key to Bankruptcy. I'd been working hard for a few years, and saved up a small amount of money I wanted to invest. It was the early 1980s so interest rates were very high and investing your money was really profitable. I spent time researching a variety of investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had good suits and plush offices; they all seemed to exude confidence and have all the answers. What hit me was that they all had an extremely different idea of what I should do. This puzzled me so much that it put me off the entire idea of selecting any of them.

I'm sure currently you have read more than enough on the internet to be totally bewildered about Bankruptcy and exactly what to do. It would undoubtedly be easier for me to help you learn about the nature of the financial snakes you might be picking up while you are trying to get to the bottom of your financial concerns in Darwin. Basically, you need to try and understand what your overarching choices are, do your very own research into where to proceed with your plan for Bankruptcy, and then approach what you feel is best in Darwin for your requirements. Basically, you have 3 options for who to turn to.

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

Another choice you may consider is your accountant - they are incredibly helpful and vital to the task of running 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 need to figure out when it comes to Bankruptcy.

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult with Bankruptcy Experts Darwin on 1300 795 575, or visit our website: bankruptcyexpertsDarwin.com.au.

Bankruptcy in Darwin - Changes that help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Darwin is changing? The Australian Government in late 2015 submitted some innate changes to the Bankruptcy Laws in Australia. One of the most significant of these is the length of time that a person is bankrupt for. Now, there is a minimum amount of time that you must continue to be bankrupt, having said that, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be considerably important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 suggested that "the proposed changes to ease the burden of bankruptcy laws didn't go far enough and the government should adopt US-style laws to protect the family home".

These adjustments to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that safeguarding family assets was very important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws put off investors from supporting start-ups, and therefore mentoring had been "driven out of the system".

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

Fraudulent Behavior.

The debate about this Bankruptcy issue in Darwin that some make is that this change will only reinforce fraudulent behavior opening pandora's box so to speak for the unscrupulous to maltreatment of the bankruptcy system. We have taken a look at the minimum, but on the other side of the issue, The government is not recommending to change the maximum term of 8 years if it deems a bankrupt has appeared in an unethical or fraudulent way, and there are no suggestions to change the penalties of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Darwin, I have a decent share of experience when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Darwin I have never caught someone abusing the system or acting in a reckless way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur look at the very formidable task of bankruptcy, not once have I really felt they are happy about it. The typical small business owner or entrepreneur in Darwin does not start out taking enormous financial risks with the intention to fail. The media prefers citing the apparent abuse that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These recommended changes will be good for often the best and brightest in Darwin not get rejected of the game financially for financial decisions often out of their control. Most small business owners I help with Bankruptcy, are hardworking, tax paying, employers keeping this country going.

There really is a fine line with just what the government is trying to do here, because they are aiming to balance helping individuals who have made decisions out of their control, and deterring people from making problems that land them in trouble and as a result an issue of Bankruptcy. However you also don't want to kill the experience and knowledge that business owners have. You undoubtedly don't want to smash people simply because they have had a sincere failure in a large or small start-up enterprise that has not succeeded.

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

The government's suggested 'safe haven' changes for directors of companies will enable Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I cannot imagine, that these variations will be detrimental to Australia's economy, actually these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Darwin not a day passes where I don't find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you need some assistance with your debts in Darwin or are just thinking of Bankruptcy, don't hesitate to call us here at Bankruptcy Experts Darwin on 1300 795 575, or visit our website: www.bankruptcyexpertsdarwin.com.au