Bankruptcy in Darwin - Who do I talk to?

Should I get in touch with my accountant about Bankruptcy?

The answer seems clear doesn't it: if anyone knows your financial situation well in Darwin, It's going to be your accountant. However, the short answer is a definite No! It's not that your accountant does not 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, minimizing your tax liability and lodging your BAS.

Most accounting degrees will devote very little to no time on insolvency, it's generally done as a post graduate specialty course for those who want to work in the field. Unless your accountant is an insolvency expert, he won't know that a lot about the implications of Bankruptcy, I can assure you insolvency specialists know much about tax returns or BAS in. If you do manage 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 with 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 definitely good at undertaking things lawyers do, like helping you do your Will and buying your house and trying to keep you out of court if you're lucky. When it relates to Bankruptcy, the specialists in Darwin usually have either a legal or accounting qualifications, and the main reason for that is simply that you can't start in the post graduate study to become a qualified insolvency practitioner until you have a law or accounting degree.

Just like there are few insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay an ample 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 with this, they have no hidden agendas and they're an amazing option for really helping you think through your situation when it comes to Bankruptcy. If you end up stressing constantly, not sleeping, not eating or over-eating and thinking about money pressures regularly, then get some help.

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

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

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

When people in Darwin come to me trying to discuss Bankruptcy, they are always 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 very most common troubles is 'Will I lose my business if I declare bankruptcy?' The brief answer is no. If you are an owner of a company any shape or size you can keep your business if you wish to. In Darwin, businesses that become insolvent have a few options including liquidation, voluntary administration and so on. It's people who go bankrupt not businesses.

Bankruptcy is a complicated area so get some reliable advice on this if you have a business. Generally speaking, the financial obligations in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are some essential 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 as soon as you're bankrupt.

A limitation 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 want to make known as a part of that but in essence you can still run your company. For some business owners, bankruptcy impacts 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 consequently you can not trade without that license, so make sure you are asking the best questions when it involves licenses and Bankruptcy in Darwin.

However 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 business, then go bankrupt and then open the doors the next day like almost nothing had happened. There are laws in place to stop what is called phoenix companies appearing out of the ashes of an old company.

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

When it comes to Bankruptcy, I consider that giving generic advice in this area is likely dangerous as it can have very significant implications for directors and business owners. This is due to the fact that it is just one of those cases where what the right advice for one business owner is the wrong advice for the other. There are some basics however, that you may benefit from. There is no restriction to the size of the business you run while you are bankrupt. You can employ staff. You can continue to deal with your manufacturers 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 too uneasy about what you can and can't do as a business owner, just get the best advice ... If you wish to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to call Fresh Start Solutions Darwin on 1300 818 575, or visit our website: .freshstartsolutions.com.au/bankruptcy-Darwin

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

When it comes to Bankruptcy Darwin, quite often people aren't aware that there can be both voluntary, and involuntary bankruptcy - both of these have different methods and policies.

Involuntary bankruptcy takes place when someone you owe money to involves the court to declare you bankrupt. Typically when you get one of these types of notices, you have 21 days to pay all the debt. If you don't, then the creditor goes back to the court and requests the court to provide a sequestration order that declares you bankrupt. A trustee is appointed, and then you have 14 days to get the documentation in and then you are bankrupt.

You can contest a bankruptcy notice by going to court following 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 declared bankrupt, they're conducted to in the very same way.

However, when it concerns Bankruptcy for this, the stress, 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 tips 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 typically 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 everyone of course, but commonly I find that one way you could work it out is to figure out how long it will take you to pay all 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 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 truly damaged for that period of time - and all of this will impact how you need 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 actually have defaults on your credit report for 5 years, bear in mind that bankruptcy is on your credit file for a total 7 years then its erased 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 contrast 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 more people are afraid of when they come to me to talk about 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. As compared to countries like the United States, our bankruptcy laws are extremely good.

I don't pretend to know why that is but a couple of hundred years ago debtors went to prison. Nowadays 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 costs the taxpayer anyway.

Bankruptcy wipes every one 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 much more that can be said about 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, don't forget that there are always alternatives when it involves Bankruptcy in Darwin, so do some research, and Good luck!

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

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

Bankruptcy Darwin is a intricate process, and you ought to ensure you get the right guidance. 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 constraint on how much you can earn. However, I will mention that your income is a major consideration when working through when it comes to Bankruptcy.

The first thing you need to keep in mind 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 sum 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 increases the threshold amount, if you have financial commitments in Darwin such as medical, child care, serious travel to and from work, or a scenario where your partner used to work but is not able to support the family income.

Some of the interesting parts of Bankruptcy is that your employer will not be alerted when you file for bankruptcy. Also, Child support is always taken into account 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 pay $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 surrounding income and what is or isn't considered income - if you're unsure, it's recommended 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 cases not an economically practical option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will be taken by the ATO whilst you are bankrupt to chip in 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 caps.

If you feel like when it comes to Bankruptcy, your case is more complicated, then simply get specialist advice in Darwin. I may seem like a broken record, but keep in mind that it's always a good idea to work through these options prior to declaring bankruptcy, because once you have filed the paperwork it's far too late to change your mind.

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

Bankruptcy in Darwin - Choices, Choice, Choices

When it comes to Bankruptcy Darwin, there are a bunch of options that we get given depending upon who we are, who we speak to, and exactly what has gone wrong. 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 Darwin, a lot of the facts you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, I can assure you they will tell you to consolidate your debts. The debt consolidation industry is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for assisting you wrap each one of your credit card and personal loans into just one neat and tidy bundle.

I hate to tell you this but they aren't doing it free of charge. Please do not misunderstand me: if you believe your financial troubles in Darwin may possibly be fixed by paying less interest, then go ahead and look into the choices. Even a small amount of interest saved over years easily adds up.

More often than not I find if you read this blog you've undoubtedly 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 nonpayments on it so no one will give you a loan, consolidated or otherwise,.
• By the time you work it all out, you're so far down a hole that saving a little bit of interest just won't make a great deal of difference,.
• -You've most probably arrived at 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 on.

Personal Insolvency Agreements

So when it comes to Bankruptcy in Darwin, what's the big 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 firm that advertises on TV. Ultimately this process is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they work out a deal in your place. You can give a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets instead of cash. This might sound okay when it comes to the problems 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 must come to an understanding the deal. If they don't, your plan is rejected or ought to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they'll settle for under the amount you owe them - it's normally a percentage of the debt - but allow me to 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.

In most 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 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 heard of creditors choosing 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 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 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 Darwin on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Darwin

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: www.bankruptcyexpertsDarwin.com.au.

Bankruptcy in Darwin - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you recognize just how much Bankruptcy in Darwin is changing? The Australian Government in late 2015 moved for some innate changes to the Bankruptcy Laws in Australia. The most significant of these is the length of time that a person is bankrupt for. Right now, there is a minimum amount of time that you must stay bankrupt, however, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be pretty 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 alterations 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 prevented 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 around this Bankruptcy issue in Darwin that some make is that this modification will only strengthen fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to defilement 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 behaved in an unethical or fraudulent way, and there are no proposals to change the consequences of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Darwin, I have a decent share of practical experience when it concerns Bankruptcy. And having dealt with thousands of bankruptcy cases in Darwin I have never caught someone abusing the system or acting in an immoral way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur undergo the very difficult task of bankruptcy, not once have I believed they are happy about it. The standard small business owner or entrepreneur in Darwin does not start out taking enormous financial risks with the intention to fail. The media loves citing the apparent misuse 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 most effective 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 certainly is a fine line with what the government is trying to do here, since they are aiming to balance helping people who have made decisions out of their control, and discouraging people from making miscalculations that land them in trouble and as a result an issue of Bankruptcy. However you likewise don't want to destroy the experience and knowledge that business owners have. You surely don't want to smash people simply because they have had a genuine failure in a large or small start-up enterprise that has not succeeded.

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 insolvency were decreased because directors are distressed they'll be personally responsible in an insolvency arrangement if the new project 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 revisions will be destructive to Australia's economy, indeed these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health field because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Darwin not a day goes by where I don't hear the tragic experiences of relationship failures, thoughts of suicide and the list goes on.

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