Bankruptcy in Adelaide - Who exactly do I talk to?

Should I talk to my accountant about Bankruptcy?

The answer seems clear doesn't it: if anybody knows your financial situation well in Adelaide, 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 in mind 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 speciality program for those who intend to work in the field. Unless your accountant is an insolvency specialist, he would not know that a lot about the effects of Bankruptcy, I can assure you insolvency specialists know much about tax returns or BAS in. If you do happen to find an insolvency accounting firm in Adelaide, they tend to be large firms with very nice offices who charge accordingly.

Should I talk to my Solicitor about Bankruptcy?

No! You can speak with your solicitor in Adelaide but more than likely it won't do you much good. Solicitors are certainly good at carrying out things lawyers do, like helping 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 Adelaide usually 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 unless you have a law or accounting degree.

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

Should I speak with a financial counsellor about Bankruptcy?

Yes! There are lots of financial counselling services to aid you with this, they have no hidden agendas and they're a superb option for really helping you analyze your situation when it comes to Bankruptcy. If you end up stressing constantly, not sleeping, not eating or over-eating and thinking of money pressures regularly, then get some help.

There are also charitable organizations around Adelaide like Lifeline that offer a remarkable service. They will be a sounding board if you just need a person to discuss with you what your options are. Don't let your financial issue 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 speak to Fresh Start Solutions Adelaide on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-Adelaide

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

When people in Adelaide come to me wanting to talk about Bankruptcy, they are always filled with questions. The internet has plenty of information, but far too much of it is baffling or contradicts itself, so I make it my mission to try and make things more clear. One of the very most simple troubles is 'Will I lose my business if I declare bankruptcy?' The short answer is no. If you are a manager of a company any shape or size you can keep your business if you wish to. In Adelaide, businesses that eventually become insolvent have a few options for instance liquidation, voluntary administration and so on. It's individuals 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 debts in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are a few vital implications for directors of companies when it pertains to Bankruptcy in Adelaide: A bankrupt can not be a director of a company, so if you have a pty ltd company you definitely will need to retire as a director as soon as you're bankrupt.

A restriction that applies when you are generally 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 must reveal as a part of that but generally you can still run your business. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. For 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 comes to licenses and Bankruptcy in Adelaide.

But 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 rack up heaps of debt in your company, then go bankrupt then open the doors the next day like not a thing 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 matter of speaking with the right people about Bankruptcy. In this situation you may think you need a liquidator for your business, and you could be right, but remember that every liquidator is unique 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 think that giving generic advice in this area is potentially perilous as it can have very substantial implications for directors and business owners. This is because it is 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 restriction 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 comes to 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 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 Adelaide on 1300 818 575, or visit our website: .freshstartsolutions.com.au/bankruptcy-Adelaide

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

When it comes to Bankruptcy Adelaide, usually people aren't aware that there can be both voluntary, and involuntary bankruptcy - both have different approaches and rules.

Involuntary bankruptcy occurs when somebody you owe money to applies to the court to declare you bankrupt. Commonly when you get one of these notices, you have normally 21 days to pay all the debt. If you don't, then the creditor goes back 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 afterwards you are bankrupt.

You can challenge a bankruptcy notice by going to court following the 21 days have expired and put your case forward, to stop it going to the next level. Apart from 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 managed to in the exact same way.

However, when it comes to Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this method 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 effective to know what you can and can't do before you have a person bankrupt you. Once you are bankrupt, it's usually far too late.

Voluntary Bankruptcy

Alternatively, when it comes to Bankruptcy, sometimes there are moments 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 each person of course, but basically 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 really help 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 her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can really help you think this through. If you move house and overlook to pay your $30 phone bill for 6 months more, it's very likely the phone service will default your credit file. That default will remain 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 impact how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unjust. The punishment doesn't seem to equate to the crime in my book. So if you actually 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 detail in trying to decide whether to take part 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 pay back the money and still 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 discuss their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this specific country the provisions 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 generous.

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 finds that 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 of 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 actually 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 possible options. When getting some advice, always remember that there are always possibilities when it comes to Bankruptcy in Adelaide, so do some investigation, and Good luck!

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

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

Bankruptcy Adelaide is a complicated process, and you have to be sure you get the right guidance. 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 rule on how much you can earn. However, I will say that your income is a major 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 each year. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can make an application for a hardship variation that raises the threshold amount, if you have financial commitments in Adelaide like medical, child care, substantial travel to and from work, or a situation where your spouse 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 told 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 changed net income limit will be $55,332.10.

There are more issues surrounding income and what is or isn't considered income - if you're not sure, it's best to get specialist advice. The reason you need 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 can 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 limits.

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

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 Fresh Start Solutions Adelaide on 1300 818 575, or explore our website:freshstartsolutions.com.au/bankruptcy-Adelaide

Bankruptcy in Adelaide - Choices, Choice, Choices

When it comes to Bankruptcy Adelaide, there are a great deal of choices that we get given depending upon who we are, who we talk with, and just what has happened. Among the most common confusion 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 Adelaide, much of the information and facts you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation firm, I can assure you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for helping you wrap every one of your credit card and personal loans into just one neat and tidy package.

I hate to tell you this but these guys aren't going to be doing it free of charge. Please don't misunderstand me: if you think your financial troubles in Adelaide may be solved by paying less interest, then go ahead and consider the choices. Even a little amount of interest saved over years easily adds up.

Generally I find if you are reading this blog you've most likely tried to consolidate your debts already and come to the following realisations such as these:

• Your credit rating is no good, and your credit file already has defaults on it so nobody will give 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 bit of interest simply won't make a great deal of difference,.

• You've most probably reached the point where you've had enough, you're mentally fatigued, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail etc.

Personal Insolvency Agreements

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

Flexibility is the main thing Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - may I add - regulated trustee featuring the government trustee ITSA, and not a private agency that advertises on TV. Essentially this method is similar to 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 give a lump sum settlement figure or enter into a payment plan, or perhaps you can offer them assets instead of cash. This can sound okay when it comes to the problems with Bankruptcy - that is until you realize that one of the challenges with PIA's is that 75 % of the people you owe money to must agree on the deal. If they do not, your proposal is denied or will need to be renegotiated.

Generally the people you owe money want all their money back as well as interest. Sometimes they'll go for under 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 in fact settle for.

Most of the time 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 agreed 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 going for less 80 % on rare occasions, but that usually only occurs with a public company going into receivership owing huge sums of money (the kind that makes the news). If you are were owed $10million and you know the people who owe you the money have a team of brilliant 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 Adelaide 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 Fresh Start Solutions Adelaide on 1300 818 575, or visit our website:freshstartsolutions.com.au/bankruptcy-Adelaide

Bankruptcy in Adelaide - Changes that help Small Business and Entrepreneurs

Do you appreciate how much Bankruptcy Adelaide is changing? The Australian Government at the end of 2015 put forward some progressive changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. At this time, there is a minimum amount of time that you must stay bankrupt, having said that, this 3 year period may very well be reduced down to just 12 months. So if you are inquiring about Bankruptcy, this news may be fairly important to you.

Mark Carnegie in the Financial Review on the 7th December 2015 proposed 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 defending family assets was necessary because "banks just terrorise small business and the mental health consequences to society are enormous.

The problem is Australia's bankruptcy laws deterred investors from supporting start-ups, and as a result 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 argument around this Bankruptcy issue in Adelaide that some make is that this change will only invite 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 suggesting 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 propositions to change the repercussions of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Adelaide, I have a decent share of experience when it comes to Bankruptcy. And having dealt with countless bankruptcy cases in Adelaide I have never uncovered 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 go through the very tough task of bankruptcy, not once have I felt they are happy about it. The average small business owner or entrepreneur in Adelaide does not start out taking enormous financial risks with the intention to fail. The media 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 Adelaide 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 is a fine line with the things the government is trying to do here, since they are attempting to balance helping individuals who have made decisions out of their control, and dissuading people from making errors that land them in trouble and therefore an issue of Bankruptcy. However you also don't want to kill the experience and knowledge that business owners have. You certainly don't want to shatter people simply because they have had an honest failure in a large or small start-up venture that has not panned out.

At the major end of town large reputable 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 bankruptcy were reduced because directors are troubled they'll be personally accountable in an insolvency arrangement if the new venture doesn't work out.

The government's suggested 'safe haven' modifications for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I cannot imagine, that these changes will be harmful 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 substantial. When it comes to Bankruptcy in Adelaide not a day goes by where I don't find out the tragic stories of relationship failures, thoughts of suicide and the list continues.

Bankruptcy helps save lives, and it could save yours. If you want some help with your debts in Adelaide or are just thinking about Bankruptcy, don't hesitate to call us here at Fresh Start Solutions Adelaide on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-adelaide

Bankruptcy in Adelaide- Are you going to get bitten?

When people in Adelaide 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 hesitant, but the rattlesnake promised not to bite him in exchange for the ride. They journeyed 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 Adelaide when it relates to Bankruptcy is a whole lot like that little boy's journey, tangled up with risk and danger, and generally skewed for the benefit of the person giving the advice. In most cases you'll get bitten unless you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with getting financial advice as a teenager, and it has been key 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 rather profitable. I spent time researching many different investment options, and I went to visit a few financial advisors. It was transparent 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 very different idea of what I should do. This baffled me so much that it put me off the entire idea of opting for any of them.

I'm sure currently you have read enough on the internet to be totally mixed up about Bankruptcy and just what to do. It would most likely be easier for me to help you comprehend the nature of the financial snakes you could be grabbing while you are trying to get to the bottom of your financial problems in Adelaide. In essence, you need to try and comprehend what your overarching alternatives are, do your very own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Adelaide for your needs. Basically, you have 3 options for who to turn to.

The first option is a Solicitor - This may feel like the go-to possibility when you appear to be in trouble. But certainly there is only just so much help they can give on this matter. There are definitely specialist legal advisors in bankruptcy, but their experience includes a hefty price.

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

Your best bet? 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 would like to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult with Fresh Start Solutions Adelaide on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-Adelaide