Bankruptcy Sunshine Coast, So what is the Deal with Debts?

Just what Debts are removed if I go Bankrupt?

The simple answer is that when it concerns Bankruptcy most debts are wiped, and I have featured a chart below for you to look at.

But, simply put some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) together with any debts arising from uninsured Motor-vehicle claims and educational debts for example, HECS or FEE-HELP. These debts are not erased when you file for bankruptcy.

What about Secured Debts?

A secured debt is a car loan or a home loan; it is a debt that has some real security connected to it. So for example if you buy a new car for $40,000 dollars the security for that car is the actual car itself.

So, can my secured debts be cleared away if I file for bankruptcy?

Yes. If you have a car loan for $40,000 you can have that debt erased if you simply hand back the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts can be wiped but the asset has to be sold or returned. This is just one element that, when it comes to Bankruptcy, it is necessary to get professional help - like that you can find at Bankruptcy Experts Sunshine Coast.

What about my Tax Debts with the ATO can they be erased If I go bankrupt?

Yes they can, both business and personal debts owing to the ATO can be cleared away with bankruptcy. If you have a business with any kind of debts receive some advice because it is not always so self-explanatory. Feel free to call us here at Bankruptcy Experts Sunshine Coast if you have any questions on 1300 795 575. Or feel free to check out our website: www.bankruptcyexpertsSunshineCoast.com.au

What about my business or Company debts?

In some cases when it involves Bankruptcy we can really help you with your business debts, call us concerning this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Typically you may need to liquidate a company to deal with the debt this way. And when it comes to Bankruptcy, it can be a confusing area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Experts Sunshine Coast we specialise in business and personal debts so contact us here at Bankruptcy Experts Sunshine Coast if you have any questions regarding Bankruptcy on 1300 795 575. Or feel free to explore our website: www.bankruptcyexpertsSunshineCoast.com.au

Bankruptcy in Sunshine Coast - Will I lose my home if I go bankrupt?

Bankruptcy Sunshine Coast is a tricky process, but I know from meeting with thousands facing the possibility of bankruptcy over the years, that nothing worries people more than the thought of losing the family home. Almost every person is sentimentally connected to their home - it's where the kids have grown, it's where you take pleasure in life on a day to day basis.

Will you lose your home if you go bankrupt? The response is a resounding maybe. (not very useful, I know) People generally feel that it's an inevitable consequence and a part of Bankruptcy, and consequently push themselves to the brink of insanity to not lose the family home. But when it comes to the whole process of Bankruptcy, a key perk of Debt Agreements and Personal Insolvency Agreements is you can keep your house. The reason is simple: you've agreed to pay back the debt you are in.

So how is it possible to keep my Sunshine Coast house, you ask? It's easier if I explain the basic theory behind the Bankruptcy process as administered by the trustee, then you'll have a more clear image.

The function of the bankruptcy trustee is to firstly abide by the regulation of the bankruptcy act 1966 (it's a very boring read about 600 pages if you are curious).

Within that regulatory framework, the trustee is to help recover monies owed to your creditors, that is carried out in a bunch of distinct ways but it mainly comes down to income and assets. The trustees role is to collect payments over and above your income threshold. The other role is to sell any assets that can contribute to repaying your debts.

What this sounds like is that yes the trustee will sell your house right? Not always. The only reason the trustee will sell off any asset including your house is to get money to pay back your debts. If there is no equity in your home then it's pointless to sell your home. This is happening much more since the GFC as house prices in many regions have been heading south so what you paid 4 years ago may not automatically reflect the price today.

A quick tip here if you have a house in Sunshine Coast and are looking at Bankruptcy: get an expert to help you through this process, there are plenty of variables in these scenarios that should be considered.

You might wonder, why would the bank want bankrupt clients? wouldn't they hope to sell your house and not take the risk? The bank that has generously lent you the money for your house is making good money every month in interest out of you, month in month out, as long as you keep up to date with your monthly payments then the bank wants you in there at all costs. Essentially however it's not the bank's call if the trustee determines that there is lots of equity in your house the trustee will force you and the bank to sell the house.

When you file for bankruptcy you are asked to make a note of the value of your house and the quantity you owe on the house. A tip if you are aiming to work out the value of your house: use a registered valuer as this will offer you peace of mind, don't use your neighbours' gut feel advice or a real estate agents advice to get to this figure. When you get a valuer out to your house, make certain you tell the valuer to value the property for a quick sale, ensure you mow the lawn and don't leave the kitchen in a mess also.

Valuers used to give two valuations: one for a quick sale and one for a well marketed non time sensitive sale. Nowadays that's not the case, but if you meet them and tell them you need to sell the house in the next 30 days you may control the result. The idea is that you want a realistic sell now figure.

There are two main reasons this valuation technique is critical to you: one you will definitely have peace of mind ascertaining the market value of your house, then afterwards you can easily develop your equity position. Secondly, your property may be worth a lot more than you thought. Get some tips before carrying this out. The number of times I've met clients that have sold their family home of 20 years simply to figure out I could of helped them keep it; unfortunately this happens all too often

When it comes to Bankruptcy and houses, another significant consideration is ownership, in most cases houses are acquired in joint names. Simply put a couple may be a house 50/50 using both incomes to make the payments. If one party declares bankruptcy and the other party does not, the equity is only factored on the 50 % of the property.

When it comes down to Bankruptcy, this is just one of potentially numerous scenarios that are possible when it comes to the family home. Bear in mind the non-bankrupt party can buy the bankrupt's portion of the house in bankruptcy also. I need to repeat this but get some guidance on this area of Bankruptcy because it is very tricky and every case is different.

If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak with Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsSunshineCoast.com.au.

Bankruptcy in Sunshine Coast - Who do I talk to?

Should I speak with my accountant about Bankruptcy?

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

Most accounting degrees will put in very little to no time on bankruptcy, it's generally done as a post graduate specialty course for those who intend to work in the field. Unless your accountant is an insolvency expert, he will not 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 happen to find an insolvency accounting firm in Sunshine Coast, they have the tendency to be large firms with very nice office spaces who charge accordingly.

Should I chat with my Solicitor about Bankruptcy?

No! You can talk with your solicitor in Sunshine Coast but more than likely it won't do you much good. Solicitors are certainly good at doing 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 concerns Bankruptcy, the specialists in Sunshine Coast typically have either a legal or accounting qualifications, and the 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 as there are a handful of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you find one you will pay a sizeable price for their expertise.

Should I talk to a financial counsellor about Bankruptcy?

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

There are also charities around Sunshine Coast like Lifeline that offer an excellent service. They will be a sounding board if you just need a person to talk about with you what your possibilities are. Don't let your financial issue 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 questions to ask about Bankruptcy, then feel free to contact Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsSunshineCoast.com.au.

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

When people in Sunshine Coast come to me seeking to talk about Bankruptcy, they are usually filled with questions. The internet is full of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make things more clear. One of the most general problems is 'Will I lose my business if I declare bankruptcy?' The short 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 Sunshine Coast, businesses that end up being insolvent have a few options for example, liquidation, voluntary administration and so on. It's individuals who go bankrupt not companies.

Bankruptcy is a complicated area so get some qualified advice on this if you have a business. Generally speaking, the financial obligations in a business and personal debts go together when a business owner declares bankruptcy. There are some important implications for directors of companies when it comes to Bankruptcy in Sunshine Coast: 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 actually 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 will need to reveal as a part of that but generally you can still run your company. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. As an example, if you run a building company, your license will be suspended once you're bankrupt and therefore you can no longer trade without that license, so make sure you are asking the appropriate questions when it comes to licenses and Bankruptcy in Sunshine Coast.

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 acquire heaps of debt in your business, then go bankrupt then open the doors the next day like practically 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 speaking to the suitable people about Bankruptcy. In this situation you may think you need a liquidator for your company, and you could be right, but keep in mind that every liquidator is different and have their own motives. Liquidators earn 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 likely risky as it can have very considerable implications for directors and business owners. This is since 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 reduce to the size of the business you run though you are bankrupt. You can employ staff. You can continue to deal with your providers under certain conditions, the main one being you will need to meet the payment terms agreed upon.

So when it concerns Bankruptcy, don't get overly stressed 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, precisely where to turn and what questions to ask about Bankruptcy, then feel free to call Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: .bankruptcyexpertsSunshineCoast.com.au.

Bankruptcy in Sunshine Coast - does it matter if it is voluntary?

When it comes to Bankruptcy Sunshine Coast, normally people aren't aware that there may be both voluntary, and involuntary bankruptcy - both of these have different approaches and guidelines.

Involuntary bankruptcy occurs when someone you owe money to applies to the court to declare you bankrupt. Commonly when you get one of those notices, you have normally 21 days to pay all the debt. If you do not, then the creditor returns 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 paperwork in and then you are bankrupt.

You can contest a bankruptcy notice by going to court after the 21 days have expired and put your case forward, to avoid it going to the next level. Other than 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 concerns Bankruptcy for this, the stress, torment and fear that accompanies this method is incredible. If you think you are prone to be made bankrupt by someone, get some tips and act on that advice. Generally I've found it's always much better to know what you can and can't do before you have a person bankrupt you. Once you are bankrupt, it's generally far too late.

Voluntary Bankruptcy

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

This question is not the very same for each person of course, but more often than not I find that one way you could work it out is to figure out just 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 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 rate she was paying off her account, and it was 35 years! Imagine 35 years for one credit card bill.

Credit rating damage can help you think this through. If you move house and forget to pay your $30 phone bill for 6 months more, it's very likely the 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 seriously damaged for that period of time - and all of this will affect how you have to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is unreasonable. The punishment doesn't seem to equal 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 issue 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 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 quite reasonable.

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 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 costs the taxpayer anyway.

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

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

·         HECS or Fee Help loans.

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

There is far 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, don't forget that there are always possibilities when it concerns Bankruptcy in Sunshine Coast, so do some homework, 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 contact Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: bankruptcyexpertsSunshineCoast.com.au.

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

Bankruptcy Sunshine Coast is a challenging process, and you should make sure you get the right advice. And when it comes to your income being affected, the answer to the question is maybe. The very first thing you have to know about going bankrupt is there is no limit on how much you can earn. However, I will say that your income is a serious consideration when working through when it comes to Bankruptcy.

The very first thing you need to know about this area of Bankruptcy is the amount 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 apply for a hardship variation that raises the threshold amount, if you have financial strains in Sunshine Coast like medical, child care, significant travel to and from work, or a situation 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 notified 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 provide $5,000 child support each year and you have no dependents living with you then your revised net income limit will be $55,332.10.

There are much more issues involving income and what is or isn't considered income - if you're unsure, 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 instances not an economically viable 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 contribute toward your tax bill. If you don't have a tax bill then you will keep your tax refund as long as that doesn't take you over your threshold income limits.

If you feel like when it comes to Bankruptcy, your situation is more complex, then just get specialist advice in Sunshine Coast. I may sound like a broken record, but keep in mind that it's always a good idea to overcome these options prior to declaring bankruptcy, because once you have filed the paperwork it's too late to change your mind.

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: bankruptcyexpertsSunshineCoast.com.au.

Bankruptcy in Sunshine Coast - Choices, Choice, Choices

When it comes down to Bankruptcy Sunshine Coast, there are a ton of choices that we get given depending upon who we are, who we approach, and exactly what has happened. Among the most common trouble 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 Sunshine Coast, most of the facts you receive on this topic will reflect the interests of the advice giver. That is why, if you call a debt consolidation company, I can assure you they will tell you to consolidate your debts. The debt consolidation business is a multi-billion dollar industry making money in one very straightforward way: charging you a fee for helping you wrap all of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but these people won't be doing it for free. Please do not misunderstand me: if you think your financial problems in Sunshine Coast may be fixed by paying less interest, then go ahead and investigate the options. Even a small amount of interest saved over years rapidly adds up.

More often than not I find if you read this blog you've most likely attempted to consolidate your debts already and come to the following realisations such as these:

• Your credit rating is no good, and your credit file definitely has nonpayments on it so not a single person will offer you a loan, consolidated or otherwise,.

• By the time you work it all out, you're so far down a hole that saving a tiny bit of interest just won't make a lot of difference,.

• You've probably reached the stage where you've had more than enough, you're emotionally drained, you can't go on one more day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes to Bankruptcy in Sunshine Coast, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Freedom 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 including the government trustee ITSA, and not a private firm that advertises on TV. Basically 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 take part in a payment plan, or you can offer them assets rather than cash. This can sound alright when it comes to the problems with Bankruptcy - that is up until you realize that one of the difficulties with PIA's is that 75 % of the people you owe money to have to come to an understanding the deal. If they don't, your proposal is denied or ought to be renegotiated.

Generally people you owe money prefer all their money back as well as interest. Sometimes they'll go for less than the amount you owe them - it's typically a percentage of the debt - but allow me to 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 truly settle for.

In many cases 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 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 shrewd 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 Sunshine Coast aren't going to get that lucky!

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 Sunshine Coast on 1300 795 575, or visit our website:bankruptcyexpertsSunshineCoast.com.au.

Bankruptcy in Sunshine Coast - Changes to help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of how much Bankruptcy in Sunshine Coast is changing? The Australian Government at the end of 2015 put forward some innate 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 stay bankrupt, however, this 3 year period may very well be reduced to just 12 months. So if you are asking about Bankruptcy, this news may be somewhat important to you.

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

These shifts 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 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 issue surrounding this Bankruptcy issue in Sunshine Coast that some make is that this shift will only motivate fraudulent behavior opening pandora's box so to speak 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 appeared in an unethical or fraudulent way, and there are no propositions to change the penalties of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As an insolvency professional in Sunshine Coast, I have a decent share of experience when it concerns Bankruptcy. And having dealt with thousands of bankruptcy cases in Sunshine Coast I have never caught someone abusing the system or acting in an irresponsible way as to exploit the insolvency laws in Australia. When it comes to Bankruptcy, every week I help a small business owner or entrepreneur undergo the very complicated task of bankruptcy, not once have I perceived they are happy about it. The average small business owner or entrepreneur in Sunshine Coast does not start out taking enormous financial risks with the intent to fail. The media prefers citing the apparent injustice that will be rampant if these changes occur, what a joke!

A Win for Small Business.

These recommended changes will be good for often the very best and brightest in Sunshine Coast 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.

Truth be told there is a fine line with just what the government is trying to do here, since they are trying to balance helping individuals who have made decisions out of their control, and discouraging people from making miscalculations that land them in trouble and consequently an issue of Bankruptcy. However you likewise 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 gone well.

At the major end of town large well established 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 scaled down because directors are troubled they'll be personally responsible in an insolvency arrangement if the new endeavor 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 changes for Bankruptcy. I can not imagine, that these adjustments will be destructive to Australia's economy, in fact these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health sector because the emotional cost of bankruptcy is extensive. When it comes to Bankruptcy in Sunshine Coast not a day passes where I don't find out 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 Sunshine Coast or are just thinking about Bankruptcy, feel free to contact us here at Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertssunshinecoast.com.au