Bankruptcy in Lismore - Who do I talk to?

Should I talk to my accountant about Bankruptcy?

The answer seems clear doesn't it: if anyone knows your financial circumstance well in Lismore, It's going to be your accountant. However, the short answer is a resounding No! It's not that your accountant will not have your best interests at heart when it comes to Bankruptcy, it's that his know-how lie in helping you save you money at tax time, minimizing your tax liability and lodging your BAS.

Most accounting degrees will invest hardly any to no time on insolvency, it's generally carried out as a post graduate speciality course for those who intend to work in the field. Unless your accountant is an insolvency expert, he wouldn't know that a lot about the implications 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 Lismore, they often tend to be large firms with very nice office spaces who charge accordingly.

Should I talk with my Solicitor about Bankruptcy?

No! You can speak to your solicitor in Lismore but more than likely it won't do you much good. Solicitors are really good at undertaking 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 Lismore tend to 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 like there are a handful 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 talk to a financial counsellor about Bankruptcy?

Yes! There are a lot of financial counselling services to guide you through this, they have no hidden agendas and they're an excellent option for letting you analyze your situation when it comes to Bankruptcy. If you end up freaking out constantly, not sleeping, not eating or over-eating and thinking of money pressures at all times, then get some help.

There are also charities around Lismore like Lifeline that offer a terrific service. They will be a sounding board if you just need somebody to go over with you what your options are. Don't let your financial issue destroy your life - ultimately it's just money.

If you like to learn more about what to do, where to turn and what matters to ask about Bankruptcy, then feel free to call Bankruptcy Experts Lismore on 1300 795 575, or visit our website: www.bankruptcyexpertsLismore.com.au.

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

When people in Lismore come to me looking to discuss Bankruptcy, they are typically filled with questions. The internet has plenty of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make it clearer. One of the most universal issues is 'Will I lose my business if I declare bankruptcy?' The quick answer is no. If you are an owner of a company any shape or size you can maintain your business if you wish to. In Lismore, businesses that are insolvent have a few options like liquidation, voluntary administration and so on. It's individuals who go bankrupt not businesses.

Bankruptcy is a complicated area so get some qualified advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go hand in hand when a business owner goes bankrupt. There are some essential implications for directors of companies when it comes to Bankruptcy in Lismore: A bankrupt can not be a director of a company, so if you have a pty ltd company you are going to need to resign as a director as soon as you're bankrupt.

A constraint that applies when you are bankrupt as a business owner is that you may 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 effectively you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. Such as, if you run a building company, your license will be suspended once you're bankrupt and therefore you can not trade without that license, so make sure you are asking the ideal questions when it concerns licenses and Bankruptcy in Lismore.

However if your business is not impacted directly by such issues, then you'll will need to restructure the way you run your business. There are considerations when and if you go bankrupt as a business owner: you can not acquire heaps of debt in your business, then go bankrupt and afterwards open the doors the next day like practically nothing had happened. There are laws in place to stop what is called phoenix companies growing out of the ashes of an old company.

Having said that, it's just a point of speaking with the best people about Bankruptcy. In this situation you may believe 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 believe that giving generic advice in this area is likely risky as it can have very severe implications for directors and business owners. This is due to the fact that it is one of those cases where what the right advice for one business owner is the wrong advice for the other. There are some principles however, that you may benefit from. There is no limitation to the size of the business you run while you are bankrupt. You can employ staff. You can constantly deal with your distributors 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 overly worried about what you can and can't do as a business owner, just get the appropriate advice ... If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Lismore on 1300 795 575, or visit our website:.bankruptcyexpertsLismore.com.au.

Bankruptcy in Lismore - Changes to aid Small Business and Entrepreneurs

Do you have knowledge of how much Bankruptcy Lismore is changing? The Australian Government at the end of 2015 posed some inherent 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. Currently, there is a minimum amount of time that you must continue to be bankrupt, but, this 3 year period may in fact be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be somewhat important to you.

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

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

The problem is Australia's bankruptcy laws discouraged 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 issue about this Bankruptcy issue in Lismore that some come up with is that this change will only motivate fraudulent behavior opening pandora's box so to speak for the unscrupulous to misuse of the bankruptcy system. We have taken a look at the minimum, but on the other side of the issue, The government is not submitting to change the maximum term of 8 years if it deems a bankrupt has performed in an unethical or fraudulent way, and there are no recommendations to change the effects of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

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

A Win for Small Business

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

Now there is a fine line with what exactly the government is trying to do here, since they are trying to balance helping people who have made decisions out of their control, and dissuading people from making problems that land them in trouble and consequently an issue of Bankruptcy. However you also don't want to eliminate the experience and knowledge that business owners have. You certainly don't want to shatter people simply because they have had a sincere failure in a large or small start-up venture that has not worked out.

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

The government's proposed 'safe haven' changes for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I can not imagine, that these adjustments will be detrimental to Australia's economy, in fact 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 Lismore not a day passes where I don't hear the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you really need some help with your debts in Lismore or are just thinking of Bankruptcy, feel free to contact us here at Bankruptcy Experts Lismore on 1300 795 575, or visit our website: bankruptcyexpertslismore.com.au

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

When it comes to Bankruptcy Lismore, commonly people aren't aware that there are both voluntary, and involuntary bankruptcy - both have distinct methods and guidelines.

Involuntary bankruptcy occurs when somebody you owe money to involves the court to declare you bankrupt. Commonly when you get one of these particular notices, you have actually 21 days to pay all the debt. If you don't, then the creditor returns to the court and asks the court to provide a sequestration order that declares you bankrupt. A trustee is assigned, and then you have 14 days to get the paperwork in and after that you are bankrupt.

You can contest a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to stop it going to the next level. Other than the way you became bankrupt there is in reality no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're overseen 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 help 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 somebody bankrupt you. Once you are bankrupt, it's normally too late.

Voluntary Bankruptcy

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

This question is not the very same for everybody of course, but usually I find that one way you could work it out is to figure out just how long it will take you to pay each 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 level she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can help you think this through. If you move house and 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 unethical. The punishment doesn't seem to amount to the crime in my book. So if you currently have defaults on your credit report for 5 years, remember that bankruptcy is on your credit file for a total 7 years then its wiped off completely.

So if your credit rating is a big factor 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 contrast is that with a DA or PIA you pay back the money and nevertheless 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 review their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. Compared with countries like the United States, our bankruptcy laws are extremely good.

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

Bankruptcy wipes every one of your debts including ATO debts except for a few things:

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

·         HECS or Fee Help loans.

·         Money to take care of a car accident if the car was not insured.

There is a lot 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 available options. When getting some advice, remember that there are always possibilities when it concerns Bankruptcy in Lismore, so do some research, and Good luck!

If you want to find out more about just what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to talk to Bankruptcy Experts Lismore on 1300 795 575, or visit our website:.bankruptcyexpertsLismore.com.au.

Bankruptcy in Lismore - Will my income be affected if I go bankrupt?

Bankruptcy Lismore is a confusing process, and you ought to ensure you get the right recommendations. And when it comes to your income being affected, the answer to the question is maybe. The first thing you need to know about going bankrupt is there is no restraint on how much you can earn. However, I will say that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to understand 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 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 apply for a hardship variation that increases the threshold amount, if you have expenses in Lismore such as medical, child care, significant travel to and from work, or a scenario where your partner used to work but is not able to add to the household income.

Some of the insightful parts of Bankruptcy is that your employer will not be notified when you file for bankruptcy. Also, Child support is always taken into consideration in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also considered, for example if you give $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.

There are many more issues involving income and what is or isn't thought of as income - if you're unsure, it's a good idea 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 situations not an economically viable option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund can 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 as long as that doesn't take you over your threshold income caps.

If you think when it comes to Bankruptcy, your issue is more complex, then please get expert advice in Lismore. I may sound like a broken record, but bear in mind that it's always a good idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you wish to find out more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Lismore on 1300 795 575, or visit our website: bankruptcyexpertsLismore.com.au.

Bankruptcy in Lismore - Are you going to get bitten?

When people in Lismore ask me about Bankruptcy, I tell them 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 went together only for the snake to ultimately attack the boy despite his assurance not to do so. The snake's answer was 'You knew what I was when you picked me up.

Obtaining the right financial advice in Lismore when it pertains to Bankruptcy is a lot like that little boy's encounter, laden with risk and danger, and generally skewed for the benefit of the individual giving the advice. Often you'll get bitten except if you know what you've picked up 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 fairly high and investing your money was rather profitable. I spent a long time researching many different investment options, and I went to visit a few financial advisors. It was 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 hit me was that they all had a really different strategy of what I should do. This puzzled me so much that it put me off the whole idea of selecting any of them.

I'm sure by now you have read more than enough on the internet to be totally bewildered 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 may be grabbing while you are attempting to get to the bottom of your financial problems in Lismore. Basically, you have to try and comprehend what your overarching options are, do your own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Lismore for your requirements. Essentially, you have 3 options for who to turn to.

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

Another option you may think about is your accountant - they are incredibly useful and vital to the task of managing your business, but for the most part, when you are considering Bankruptcy, your accountant won't be much help to you anymore.

Your best bet? A Financial Counsellor that can outline debt consolidation, personal insolvency agreements, and basically all you should know when it comes to Bankruptcy.

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 Bankruptcy Experts Lismore on 1300 795 575, or visit our website: bankruptcyexpertsLismore.com.au.

Bankruptcy in Lismore - Choices, Choice, Choices

When it comes down to Bankruptcy Lismore, there are a bunch of options that we get given depending on who we are, who we talk to, and what exactly has gone wrong. The most common trouble I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Lismore, most of the help and advice you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can promise you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very basic way: charging you a fee for helping you wrap all of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but these guys aren't doing it for free. Please do not misunderstand me: if you believe your financial issues in Lismore might be fixed by paying less interest, then go on and look into the choices. Even a small amount of interest saved over years quickly adds up.

Normally I find if you are reading this blog you've most likely tried to consolidate your debts already and come to the following realisations similar to 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 small amount of interest simply won't make a great deal of difference,

• You've most probably reached 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 relates to Bankruptcy in Lismore, what's the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability is the main point Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - may I add - regulated trustee featuring the government trustee ITSA, and not a private organization that advertises on TV. Essentially this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys mediate a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets rather than cash. This can sound fine when it comes to the issues with Bankruptcy - that is up until you realize that one of the problems with PIA's is that 75 % of the people you owe money to will have to agree on the deal. If they don't, your plan is rejected or will need to be renegotiated.

Generally the people you owe money want all their money back and also interest. Sometimes they'll go for beneath the amount you owe them - it's generally 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 actually settle for.

In many 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 Bankruptcy and insolvency I've heard of creditors settling 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 brilliant 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 Lismore aren't going to get that lucky!

If you would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Lismore on 1300 795 575, or visit our website:bankruptcyexpertsLismore.com.au.