Bankruptcy in Pert - Who exactly do I talk to?

Should I speak to my accountant about Bankruptcy?

The answer seems clear doesn't it: if anybody knows your financial circumstance well in Perth, It's going to be your accountant. However, the short answer is a resounding No! It's not that your accountant may 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, lowering your tax liability and lodging your BAS.

Most accounting degrees will put in hardly any to no time on insolvency, it's generally done as a post graduate specialty program 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 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 Perth, they tend to be large firms with very nice offices who charge accordingly.

Should I talk with my Solicitor about Bankruptcy?

No! You can talk to your solicitor in Perth but more than likely it won't do you much good. Solicitors are really good at carrying out things lawyers do, like assisting you do your Will and buying your house and trying to keep you out of court if you're lucky. When it comes to Bankruptcy, the specialists in Perth tend to 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 unless 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 choose one you will pay a substantial price for their expertise.

Should I speak with 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 a marvellous option for really helping you analyze your situation when it comes to Bankruptcy. If you find yourself stressing constantly, not sleeping, not eating or over-eating and thinking of money pressures at all times, then get some help.

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

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

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

When people in Perth come to me wanting 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 regular worries is 'Will I lose my business if I declare bankruptcy?' The concise answer is no. If you are an owner of a company any shape or size you can keep your business if you want to. In Perth, businesses that are insolvent have a few options for example, liquidation, voluntary administration and so on. It's people 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 declares bankruptcy. There are some vital implications for directors of companies when it comes to Bankruptcy in Perth: A bankrupt can not be a director of a company, so if you have a pty ltd company you will definitely need to retire as a director after you're bankrupt.

A limitation that applies when you are generally bankrupt as a business owner is that you can be in your own business as a sole trader only. Generally there are things you have to disclose as a part of that but in essence you can still run your company. 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 no longer trade without that license, so make sure you are asking the right questions when it involves licenses and Bankruptcy in Perth.

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 nothing at all had happened. There are laws in place to avoid what is called phoenix companies growing out of the ashes of an old company.

Having said that, it's just a point of speaking to the best people about Bankruptcy. In this situation you may believe you need a liquidator for your company, and you might be right, but remember that every liquidator is unique and have their own motives. Liquidators make money from your liquidation - heaps of money - so 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 significant implications for directors and business owners. This is since it is one of those cases where what the right guidance for one business owner is the incorrect advice for the other. There are some fundamentals however, that you may benefit from. There is no reduce to the size of the business you run even though you are bankrupt. You can employ staff. You can 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 comes to Bankruptcy, don't get too worried about what you can and can't do as a business owner, just get the right advice ... If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Fresh Start Solutions Perth on 1300 818 575, or visit our website:.freshstartsolutions.com.au/bankruptcy-Perth

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

When it comes to Bankruptcy Perth, typically people aren't aware that there can be both voluntary, and involuntary bankruptcy - both have unique approaches and policies.

Involuntary bankruptcy takes place when somebody you owe money to applies to the court to declare you bankrupt. Commonly when you get one of these notices, you have 21 days to pay all the debt. If you do not, then the creditor goes back 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 then you are bankrupt.

You can object to a bankruptcy notice by going to court after the 21 days have expired and put your case forward, to prevent it going to the next level. Apart from the way you became bankrupt there is in reality no difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're administered 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 prone 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 an individual bankrupt you. Once you are bankrupt, it's typically far too late.

Voluntary Bankruptcy

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

This question is not the very same for every person of course, but normally I find that one way you could work it out is to figure out how long it will take you to pay each of your debts - if its longer than 3 years (the period you are declared bankrupt), then this may serve to 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 help you think this through. If you move house and forget to pay your $30 phone bill for 6 months more, it's very likely the phone company will default your credit file. That default will 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 need to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is improper. 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, 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 factor 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 variation is that with a DA or PIA you repay 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 part most people are afraid of when they come to me to go over their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this specific country the arrangements are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. As compared to countries like the United States, our bankruptcy laws are quite generous.

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

Bankruptcy wipes all 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 actually insured.

There is a lot more that can be said about doing this and Bankruptcy in general but the purpose of this blog was to help you decide between a few available options. When getting some advice, bear in mind that there are always choices when it involves Bankruptcy in Perth, so do some homework, and Good luck!

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

Bankruptcy in Perth - Choices, Choice, Choices

When it comes to Bankruptcy Perth, there are a number of options that we get given depending on who we are, who we speak with, and exactly what has gone wrong. The most common confusion I see with Bankruptcy is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Perth, most of the related information you receive on this subject matter 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 aiding 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 free of charge. Please do not misunderstand me: if you consider your financial problems in Perth can be fixed by paying less interest, then go on and explore the options. Even a small amount of interest saved over years quickly adds up.

Usually I find if you read this blog you've probably attempted to consolidate your debts already and come to the following realisations similar to these:

•      Your credit rating is not good, and your credit file definitely has nonpayments on it so no one 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 a bit of interest just won't make a lot of difference,.
•     You've quite possibly gotten to the stage where you've had enough, you're mentally worn down, you can't go on 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 Perth, what's the difference between a Debt Agreement and a Personal Insolvency Agreement?

Flexibility 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. Ultimately this process is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these guys work out a deal in your place. You can give a lump sum settlement figure or enter into a payment plan, or maybe you can offer them assets rather than cash. This might sound alright when it comes to the complications with Bankruptcy - that is up until you discover that one of the difficulties with PIA's is that 75 % of the people you owe money to will need to agree on the deal. If they do not, your plan is rejected or will have to be renegotiated.

Generally the people you owe money want all their money back as well as interest. Sometimes they'll go for beneath the amount you owe them - it's typically 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 actually 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 clever 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 Perth 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 Fresh Start Solutions Perth on 1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Perth.

Bankruptcy in Perth - Are you going to get bitten?

When people in Perth 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 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 in the end 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.

Acquiring the right financial advice in Perth when it concerns Bankruptcy is a great deal like that little boy's experience, laden with risk and danger, and usually skewed for the benefit of the individual presenting the advice. In many cases you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with obtaining 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 little bit of money I wanted to invest. It was the early 1980s so interest rates were pretty high and investing your money was really profitable. I spent a few years researching varying investment options, and I went to visit a few financial advisors. It was obvious 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 solutions. What hit me was that they all had a really different idea of what I should do. This baffled me so much that it put me off the entire idea of selecting any of them.

I'm sure currently you have read enough on the internet to be totally overwhelmed about Bankruptcy and precisely what to do. It would undoubtedly be easier for me to help you comprehend the nature of the financial snakes you may be grabbing while you are attempting to get to the bottom of your financial issues in Perth. Essentially, you have to try and recognize what your overarching alternatives are, do your own research into where to proceed with your strategy for Bankruptcy, and after that approach just what you feel is best in Perth for your requirements. Essentially, you have 3 options for who to turn to.

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

Another solution you may think about is your accountant - they are incredibly helpful and vital to the process of managing 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 option? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and virtually all you need to understand 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 contact Fresh Start Solutions Perth on 1300 818 575, or visit our website:freshstartsolutions.com.au/bankruptcy-Perth

Bankruptcy in Perth - Changes to help Small Business and Entrepreneurs.

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Perth is changing? The Australian Government in late 2015 proposed some radical changes to the Bankruptcy Laws in Australia. One of the most significant of these is the length of time that a person is bankrupt for. Now, there is a minimum amount of time that you must stay bankrupt, but, this 3 year period may in fact be reduced down to just 12 months. So if you are asking about Bankruptcy, this news may be pretty important to you.

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

These modifications 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 very important because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws put off investors from supporting start-ups, and 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 controversy about this Bankruptcy issue in Perth that some make is that this variation will only encourage 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 problem, The government is not proposing 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 recommendations to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Perth, I have a decent share of experience when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Perth I have never uncovered 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 look at the very difficult task of bankruptcy, not once have I sensed they are happy about it. The average small business owner or entrepreneur in Perth does not start out taking enormous financial risks with the intention to fail. The media prefers citing the apparent abuse that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These suggested changes will be good for often the most effective and brightest in Perth 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, managers keeping this country going.

There really is a fine line with the things the government is trying to do here, since they are aiming to balance helping people who have made decisions out of their control, and preventing people from making missteps that land them in trouble and consequently an issue of Bankruptcy. However you likewise don't want to destroy the experience and knowledge that business owners have. You undoubtedly don't want to smash people simply because they have had an honest failure in a large or small start-up venture that has not worked out.

At the major end of town large organized 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 scaled down because directors are distressed they'll be personally accountable in an insolvency arrangement if the new venture doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will allow Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I cannot imagine, that these alterations will be detrimental to Australia's economy, actually these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health field because the emotional cost of bankruptcy is enormous. When it comes to Bankruptcy in Perth not a day goes by where I don't hear the tragic experiences 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 Perth or are just considering Bankruptcy, feel free to phone us here at Fresh Start Solutions Perth on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-perth