Bankruptcy Gladstone, So what is the Deal with Debts?

Precisely what Debts are cleared away if I go Bankrupt?

The simple answer is that when it involves Bankruptcy most debts are wiped, and I have included a table 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 instance, HECS or FEE-HELP. These debts are not erased when you file for bankruptcy.

What about Secured Debts?

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

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

Yes. If you have a car loan for $40,000 you can have that debt wiped out if you simply return 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 needs to be sold or returned. This is just one element that, when it comes to Bankruptcy, it is essential to get professional assistance - like that provided at Bankruptcy Experts Gladstone.

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

Yes they can, both business and personal debts owing to the ATO can be wiped out with bankruptcy. If you have a business with any form of debts find some advice because it is not always so easy. Feel free to call us here over at Bankruptcy Experts Gladstone if you have any type of questions on 1300 795 575. Or feel free to head to our website: www.bankruptcyexpertsGladstone.com.au

What about my business or Company debts?

Sometimes 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. Normally you may have to liquidate a company to deal with the debt that way. 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 Gladstone we specialise in business and personal debts so give us a call here at Bankruptcy Experts Gladstone if you have any questions regarding Bankruptcy on 1300 795 575. Or feel free to go to our website: www.bankruptcyexpertsGladstone.com.au

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

Bankruptcy Gladstone is a complicated process, but I know from meeting with thousands facing the chance of bankruptcy over the years, that nothing at all troubles people more than the thought of losing the family house. Almost everybody is sentimentally connected to their home - it's where the children have grown up, it's where you enjoy life on a day to day base.

Will you lose your house if you go bankrupt? The answer is a resounding maybe. (not very helpful, 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 strength of Debt Agreements and Personal Insolvency Agreements is you can keep your house. The reason is simple: you've accepted to pay back the debt you are in.

So how is it possible to keep my Gladstone house, you ask? It's easier if I explain the basic concept behind the Bankruptcy process as administered by the trustee, then you'll have a clearer idea.

The function of the bankruptcy trustee is to firstly agree to the regulation of the bankruptcy act 1966 (it's a very dry read about 600 pages if you are interested).

Within that regulatory framework, the trustee is to help recuperate monies owed to your creditors, that is done in a bunch of different 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 off any assets that can contribute to paying your debts.

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

A quick word of advice here if you have a house in Gladstone and are looking at Bankruptcy: get a professional to help you through this process, there are a lot of variables in these scenarios that need to be considered.

You might wonder, why would the bank want bankrupt customers? wouldn't they prefer to sell your house and not take the risk? The bank that has kindly lent you the money for your house is creating good money every month in interest out of you, month in month out, provided that you keep up to date with your fees then the bank desires you in there at all costs. Ultimately 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 jot down 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 give you peace of mind, don't use your neighbours' gut feel recommendations or a real estate agents advice to arrive at this figure. When you get a valuer out to your property, ensure you tell the valuer to value the property for a quick sale, make certain 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 let them know you need to sell your home in the next 30 days you may control the result. The idea is that you want a life-like sell now figure.

There are two main reasons this valuation process is critical to you: one you can have peace of mind ascertaining the market value of your house, and afterwards you can easily develop your equity position. Secondly, your house may be worth so much more than you thought. Get some guidance before carrying this out. The number of times I've met with clients that have sold their family home of 20 years simply to discover 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 many cases houses are purchased 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 doesn't, the equity is only factored on the 50 % of the property.

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

If you really want 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 Gladstone on 1300 795 575, or visit our website: www.bankruptcyexpertsGladstone.com.au.

Bankruptcy in Gladstone - Who do I speak to?

Should I talk with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anyone knows your financial situation well in Gladstone, It's going to be your accountant. However, the short answer is a definite No! It's not that your accountant may not have your best interests at heart 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 devote 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 would not know that a lot about the implications of Bankruptcy, I can guarantee you insolvency specialists know much about tax returns or BAS in. If you do manage to find an insolvency accounting firm in Gladstone, they have the tendency to be large firms with very nice offices who charge accordingly.

Should I talk to my Solicitor about Bankruptcy?

No! You can talk with your solicitor in Gladstone 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 keeping you out of court if you're lucky. When it comes to Bankruptcy, the specialists in Gladstone often 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 until 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 considerable price for their expertise.

Should I speak to a financial counsellor about Bankruptcy?

Yes! There are lots of financial counselling services that can help you with this, they have no hidden agendas and they're an amazing option for helping you think through your circumstance when it comes to Bankruptcy. If you find yourself freaking out constantly, not sleeping, not eating or over-eating and thinking about money pressures continuously, then get some help.

There are also charitable organizations around Gladstone like Lifeline that offer a remarkable service. They will be a sounding board if you just need someone to go over with you what your alternatives 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 questions to ask about Bankruptcy, then feel free to speak to Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: www.bankruptcyexpertsGladstone.com.au.

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

When people in Gladstone come to me seeking to talk about Bankruptcy, they are constantly full of 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 things more clear. One of the very most simple concerns is 'Will I lose my business if I declare bankruptcy?' The quick answer is no. If you are an owner of a company any shape or size you can maintain your business if you would like to. In Gladstone, businesses that become insolvent have a few options just like liquidation, voluntary administration and so on. It's people who go bankrupt not companies.

Bankruptcy is a complex area so get some experienced advice on this one if you have a business. Generally speaking, the debts in a business and personal debts go hand in hand when a business owner declares bankruptcy. There are a few vital implications for directors of companies when it comes to Bankruptcy in Gladstone: A bankrupt can not be a director of a company, so if you have a pty ltd company you will likely need to resign as a director as soon as you're bankrupt.

A constraint that applies when you are actually bankrupt as a business owner is that you can be in your own business as a sole trader only. Generally there are things you will want to disclose as an aspect of that but in a nutshell you can still run your business. For some business owners, bankruptcy affects their ability to run the business because of the licensing issues. For example, if you run a building company, your license will be suspended once you're bankrupt and 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 Gladstone.

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 and after that open the doors the next day like not a thing had happened. There are laws in place to avoid what is called phoenix companies appearing out of the ashes of an old company.

Having said that, it's just a point of speaking with the best people about Bankruptcy. In this situation you may believe you need a liquidator for your business, and you could be right, but remember that every liquidator is varied and have their own motives. Liquidators profit 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 essentially perilous as it can have very significant implications for directors and business owners. This is because it is just one of those cases where what the right guidance 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 when 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 overly stressed about what you can and can't do as a business owner, just get the appropriate advice ... If you wish to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: .bankruptcyexpertsGladstone.com.au.

Bankruptcy in Gladstone - Changes to help Small Business and Entrepreneurs

Do you recognize how much Bankruptcy Gladstone is changing? The Australian Government at the end of 2015 put forward some foundational 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 remain bankrupt, having said that, this 3 year period may in fact be reduced 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 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 modifications to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that shielding family assets was necessary because "banks just terrorise small business and the mental health consequences to society are enormous".

The problem is Australia's bankruptcy laws discouraged 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 debate about this Bankruptcy issue in Gladstone that some make is that this variation will only motivate fraudulent behavior opening pandora's box so to speak for the unscrupulous to abuse 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 operated in an unethical or fraudulent way, and there are no proposals to change the repercussions of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As an insolvency professional in Gladstone, I have a reasonable share of knowledge when it comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Gladstone 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 tough task of bankruptcy, not once have I perceived they are happy about it. The average small business owner or entrepreneur in Gladstone does not start out taking enormous financial risks with the intent to fail. The media prefers 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 best and brightest in Gladstone not get kicked out 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.

Certainly there is a fine line with the things the government is trying to do here, because they are trying to balance helping people who have made decisions out of their control, and dissuading people from making problems that land them in trouble and as a result an issue of Bankruptcy. However you likewise 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 genuine failure in a large or small start-up project that has not succeeded.

At the big end of town large 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 bankruptcy were lessened because directors are distressed they'll be personally liable in an insolvency arrangement if the new venture doesn't work out.

The government's proposed 'safe haven' modifications for directors of companies will allow Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I can not imagine, that these variations will be detrimental to Australia's economy, in reality 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 enormous. When it comes to Bankruptcy in Gladstone 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 help with your debts in Gladstone or are just thinking of Bankruptcy, don't hesitate to phone us here at Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: bankruptcyexpertsgladstone.com.au

Bankruptcy in Gladstone - Are you going to get bitten?

When people in Gladstone ask me about Bankruptcy, I let them know 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 view one last sunset before he passes away. The boy was hesitant, but the rattlesnake pledged 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 answer was 'You knew what I was when you picked me up.

Asking for the right financial advice in Gladstone when it relates to Bankruptcy is a lot like that little boy's experience, tangled up with risk and danger, and typically skewed for the benefit of the person offering the advice. In most cases you'll get bitten except if you know what you've picked up before you move forward (avoid the rattlesnakes). I discovered the problem with receiving financial advice as a teenager, and it has been central 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 very high and investing your money was quite profitable. I spent a long time researching different investment options, and I went to visit a few financial advisors. It was clear that they had more money than I did: they had great suits and plush offices, they all appeared to exude confidence and have all the answers. What struck me was that they all had an extremely different strategy of what I should do. This frustrated me so much that it put me off the whole idea of opting for any of them.

I'm sure by now you have read more than enough on the internet to be totally baffled about Bankruptcy and exactly what to do. It would undoubtedly be easier for me to help you comprehend the nature of the financial snakes you may be picking up while you are attempting to get to the bottom of your financial concerns in Gladstone. Essentially, you need to try and recognize what your overarching choices are, do your very own research into where to proceed with your strategy for Bankruptcy, and then approach what you feel is best in Gladstone for your needs. Essentially, you have 3 options for who to turn to.

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

Another choice 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 about Bankruptcy, your accountant won't be much help to you any more.

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you need to understand 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 contact Bankruptcy Experts Gladstone on 1300 795 575, or visit our website:bankruptcyexpertsGladstone.com.au.

Bankruptcy in Gladstone - Choices, Choice, Choices

 When it comes down to Bankruptcy Gladstone, there are a bunch of choices that we get given depending upon who we are, who we talk with, and what exactly has gone wrong. Among 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 Gladstone, a lot of the related 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 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 simple way: charging you a fee for aiding you wrap each one of your credit card and personal loans into a single neat and tidy package.

I hate to tell you this but they aren't going to be doing it for free. Please do not misunderstand me: if you believe your financial problems in Gladstone can be fixed by paying less interest, then go ahead and investigate the possibilities. Even a small amount of interest saved over years easily adds up.

Usually I find if you are reading this blog you've undoubtedly tried to consolidate your debts already and come to the following realisations like these:

• Your credit rating is no 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 probably reached the stage where you've had enough, you're mentally drained, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail etc.

Personal Insolvency Agreements

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

Flexibility is the main thing Personal Insolvency Agreements (PIA) have in their favour. They're also administered by a registered and - may I add - regulated trustee including the government trustee ITSA, and not a private firm that advertises on TV. Ultimately this method is similar to Debt Agreements (DA): The trustee has a meeting with the people you owe money to and they arrange a deal in your place. You can offer a lump sum settlement figure or enter into a payment plan, or you can offer them assets as an alternative to cash. This might sound fine when it comes to the issues 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 have to come to an understanding the deal. If they don't, your plan is rejected or needs to be renegotiated.

Generally the people you owe money really want all their money back plus interest. Sometimes they'll go for beneath 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 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 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 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 Gladstone aren't going to get that lucky!

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 contact Bankruptcy Experts Gladstone on 1300 795 575, or visit our website:bankruptcyexpertsGladstone.com.au.