Bankruptcy in Cairns - Who exactly do I talk to?

Should I get in touch with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anyone knows your financial circumstance well in Cairns, 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 expertise lie in helping you save you money at tax time, minimizing your tax liability and lodging your BAS.

Most accounting degrees will invest very little to no time on insolvency, it's generally done as a post graduate speciality course for those who wish to work in the field. Unless your accountant is an insolvency expert, he won't 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 manage to find an insolvency accounting firm in Cairns, they often tend to be large firms with very nice offices who charge accordingly.

Should I speak to my Solicitor about Bankruptcy?

No! You can talk with your solicitor in Cairns but more than likely it won't do you much good. Solicitors are certainly good at doing 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 Cairns normally have either a legal or accounting experience, and the reason for that is simply that you can't start in the post graduate study to become a qualified insolvency practitioner unless 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 choose one you will pay a sizeable price for their expertise.

Should I speak to a financial counsellor about Bankruptcy?

Yes! There are plenty of financial counselling services to aid you with this, they have no hidden agendas and they're a splendid option for letting 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 of money pressures regularly, then get some help.

There are also charities around Cairns like Lifeline that offer a fantastic service. They will be a sounding board if you just need someone to go over with you what your choices are. Don't let your financial trouble destroy your life - in the end it's just money.

If you need to learn more about what to do, where to turn and what problems to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Cairns on 1300 795 575, or visit our website: www.bankruptcyexpertsCairns.com.au.

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

When people in Cairns come to me looking to talk about Bankruptcy, they are always loaded 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 it more clear. One of the most simple considerations is 'Will I lose my business if I declare bankruptcy?' The short answer is no. If you are a manager of a business any shape or size you can maintain your business if you wish to. In Cairns, businesses that eventually are insolvent have a few options for instance liquidation, voluntary administration and so on. It's people who go bankrupt not companies.

Bankruptcy is a complicated area so get some professional advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are several crucial implications for directors of companies when it pertains to Bankruptcy in Cairns: A bankrupt can not be a director of a company, so if you have a pty ltd company you will need to resign as a director once you're bankrupt.

A limitation that applies when you are bankrupt as a business owner is that you may be in your very own business as a sole trader only. There are things you have to reveal as a part of that but in essence you can still run your business. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. Such as, if you run a building company, your license will be suspended once you're bankrupt and consequently you can no longer trade without that license, so make sure you are asking the best questions when it comes to licenses and Bankruptcy in Cairns.

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 after that open the doors the next day like nothing had happened. There are laws in place to stop what is called phoenix companies popping up out of the ashes of an old company.

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

When it comes to Bankruptcy, I think that giving generic advice in this area is potentially damaging as it can have very serious implications for directors and business owners. This is considering 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 basics however, that you may benefit from. There is no limitation to the size of the business you run even though you are bankrupt. You can employ staff. You can continue to deal with your companies 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 appropriate advice ... If you need to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Cairns on 1300 795 575, or visit our website: .bankruptcyexpertsCairns.com.au.

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

When people in Cairns come to me looking to talk about Bankruptcy, they are always loaded 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 it more clear. One of the most simple considerations is 'Will I lose my business if I declare bankruptcy?' The short answer is no. If you are a manager of a business any shape or size you can maintain your business if you wish to. In Cairns, businesses that eventually are insolvent have a few options for instance liquidation, voluntary administration and so on. It's people who go bankrupt not companies.

Bankruptcy is a complicated area so get some professional advice on this one if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner goes bankrupt. There are several crucial implications for directors of companies when it pertains to Bankruptcy in Cairns: A bankrupt can not be a director of a company, so if you have a pty ltd company you will need to resign as a director once you're bankrupt.

A limitation that applies when you are bankrupt as a business owner is that you may be in your very own business as a sole trader only. There are things you have to reveal as a part of that but in essence you can still run your business. For some business owners, bankruptcy impacts their ability to run the business because of the licensing issues. Such as, if you run a building company, your license will be suspended once you're bankrupt and consequently you can no longer trade without that license, so make sure you are asking the best questions when it comes to licenses and Bankruptcy in Cairns.

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 after that open the doors the next day like nothing had happened. There are laws in place to stop what is called phoenix companies popping up out of the ashes of an old company.

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

When it comes to Bankruptcy, I think that giving generic advice in this area is potentially damaging as it can have very serious implications for directors and business owners. This is considering 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 basics however, that you may benefit from. There is no limitation to the size of the business you run even though you are bankrupt. You can employ staff. You can continue to deal with your companies 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 appropriate advice ... If you need to learn more about what to do, exactly where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Cairns on 1300 795 575, or visit our website: .bankruptcyexpertsCairns.com.au.

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

When it comes to Bankruptcy Cairns, quite often people aren't aware that there can be both voluntary, and involuntary bankruptcy - both have distinct methods and guidelines.

Involuntary bankruptcy happens when someone you owe money to involves the court to declare you bankrupt. Typically when you get one of those notices, you have actually 21 days to pay all the debt. If you don't, then the creditor returns to the court and requests the court to issue a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the documents in and afterwards you are bankrupt.

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

However, when it concerns Bankruptcy for this, the stress and anxiety, torment and fear that accompanies this process is incredible. If you think you are in all likelihood to be made bankrupt by someone, get some help 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 somebody bankrupt you. Once you are bankrupt, it's generally too late.

Voluntary Bankruptcy

Alternatively, when it comes to Bankruptcy, sometimes there are moments that it is the most ideal option. So you may want to ask yourself, 'when should I consider voluntary Bankruptcy?'.

This question is not the very same for everybody of course, but generally I find that one way you could work it out is to figure out just 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 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 telephone 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 truly 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 equal the crime in my book. So if you actually have defaults on your credit report for 5 years, keep in mind that bankruptcy is on your credit file for a total 7 years then its rubbed out completely.

So if your credit rating is a big detail 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 change 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 talked about 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 review 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 really generous.

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

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

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 reach out to Bankruptcy Experts Cairns on 1300 795 575, or visit our website:bankruptcyexpertsCairns.com.au.

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

Bankruptcy Cairns is a intricate process, and you need to ensure you get the right insight. And when it comes to your income being affected, the answer to the question is maybe. The first thing you have to know about going bankrupt is there is no constraint on how much you can earn. However, I will point out that your income is a major 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 amount 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 request a hardship variation that increases the threshold amount, if you have costs in Cairns such as medical, child care, significant travel to and from work, or a circumstance where your partner used to work but is no longer able to add to the family income.

Some of the insightful parts of Bankruptcy is that your employer will not be informed 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 encompassing income and what is or isn't considered income - if you're not exactly sure, it's ideal to get professional 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 practical option.

If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO while you are bankrupt to 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 think when it comes to Bankruptcy, your situation is more complicated, then feel free to get professional advice in Cairns. I may seem like a broken record, but bear in mind that it's always a great idea to overcome these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you would like to learn more about what to do, where to turn and what issues to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Cairns on 1300 795 575, or explore our website: bankruptcyexpertsCairns.com.au.

Bankruptcy in Cairns - Choices, Choice, Choices

When it comes down to Bankruptcy Cairns, there are a ton of choices that we get given depending on who we are, who we approach, and just what has happened. Among 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 Cairns, most of the information you receive on this issue will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can guarantee you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very simple way: charging you a fee for aiding you wrap each of your credit card and personal loans into one neat and tidy bundle.

I hate to tell you this but they aren't going to be doing it for free. Please don't misunderstand me: if you believe your financial troubles in Cairns may be solved by paying less interest, then go on and look into the options. Even a little amount of interest saved over years quickly adds up.

Generally I find if you are reading this blog you've probably attempted 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 all of it out, you're so far down a hole that saving a little bit of interest just won't make a lot of difference,.

• You've most probably gotten to the stage where you've had more than enough, you're mentally drained, 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 Cairns, what's the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Overall 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 organization that advertises on TV. Essentially this method resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these guys arrange a deal on your behalf. You can give a lump sum settlement figure or enter into a payment plan, or you can offer them assets rather than cash. This might sound okay when it comes to the problems with Bankruptcy - that is up until you realise that one of the challenges with PIA's is that 75 % of the people you owe money to will need to agree on the deal. If they don't, your plan is rejected or needs to be renegotiated.

Generally people you owe money prefer all their money back in addition to interest. Sometimes they'll go for less than the amount you owe them - it's typically a percentage of the debt - but let me 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 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 decideded upon with the people you owe money to. That applies whether you use a private company for this process or ITSA, the government body setup to administer to these PIAs.

When it comes to Bankruptcy and insolvency I've come across creditors opting for less 80 % on rare occasions, but that usually only occurs with a public company 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 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 Cairns 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 get in touch with Bankruptcy Experts Cairns on 1300 795 575, or visit our website:bankruptcyexpertsCairns.com.au.

Bankruptcy in Cairns - Are you going to get bitten?

When people Cairns ask me about Bankruptcy, I tell them the timeless 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 see one last sunset before he passes away. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They journeyed together only for the snake to ultimately attack the boy despite his vow not to do so. The snake's answer was 'You knew what I was when you picked me up.'.

Asking for the right financial advice in Cairns when it concerns Bankruptcy is a great deal like that little boy's experience, filled with risk and danger, and generally skewed for the benefit of the person 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 obtaining financial advice as a teenager, and it has been vital 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 pretty high and investing your money was quite profitable. I spent a few years researching different investment options, and I went to visit a few financial advisors. It was obvious 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 answers. What hit me was that they all had a really different strategy of what I should do. This frustrated me so much that it put me off the entire idea of choosing any of them.

I'm sure by now you have read enough on the internet to be totally confused about Bankruptcy and exactly what to do. It would most likely be easier for me to help you understand the nature of the financial snakes you could be grasping while you are attempting to get to the bottom of your financial issues in Cairns. Essentially, you have to try and understand what your overarching options are, do your own research into where to proceed with your strategy for Bankruptcy, and then approach just what you feel is best in Cairns for your needs. Essentially, you have 3 options for who to turn to.

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

Another option you may think about is your accountant - they are incredibly helpful and vital to the process of operating your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you at all.

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

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Experts Cairns on 1300 795 575, or visit our website: www.bankruptcyexpertsCairns.com.au.

Bankruptcy in Cairns - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you know how much Bankruptcy in Cairns is changing? The Australian Government at the end of 2015 urged some advanced changes to the Bankruptcy Laws in Australia. Among 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 remain bankrupt, but, 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 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 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 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 issue surrounding this Bankruptcy issue in Cairns that some come up with is that this shift will only push fraudulent behavior opening pandora's box so to speak for the unscrupulous to maltreatment of the bankruptcy system. We have looked at the minimum, but on the other side of the matter, 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 suggestions to change the effects of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Cairns, I have a reasonable share of experience when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Cairns I have never caught someone abusing the system or acting in a reckless 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 problematic task of bankruptcy, not once have I felt they are happy about it. The standard small business owner or entrepreneur in Cairns does not start out taking enormous financial risks with the intent to fail. The media prefers citing the apparent wrongdoing 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 very best and brightest in Cairns 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, managers keeping this country going.

There is a fine line with what the government is trying to do here, because they are trying to balance helping individuals who have made decisions out of their control, and preventing people from making oversights 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 absolutely 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 bankruptcy were reduced because directors are worried they'll be personally responsible in an insolvency arrangement if the new venture doesn't work out.

The government's suggested 'safe haven' modifications for directors of companies will enable Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I can not imagine, that these revisions will be detrimental to Australia's economy, indeed these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health industry because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Cairns not a day goes by 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 assistance with your debts in Cairns or are just thinking of Bankruptcy, feel free to contact us here at Bankruptcy Experts Cairns on 1300 795 575, or visit our website: www.bankruptcyexpertscairns.com.au