Bankruptcy Port Macquarie, So what is the Deal with Debts?

Exactly what Debts are wiped out if I go Bankrupt?

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

But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) along with any debts arising from uninsured Motor-vehicle claims and educational debts like 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 absolute security affixed to it. So for instance 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 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 may be wiped but the asset must be sold or returned. This is just one element that, when it comes to Bankruptcy, it is essential to get professional advice - like that available at Bankruptcy Experts Port Macquarie.

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 cleared away with bankruptcy. If you have a business with any sort of debts receive some advice because it is not always so basic. Feel free to call us here at Bankruptcy Experts Port Macquarie if you have any type of questions on 1300 795 575. Or feel free to head to our website: www.bankruptcyexpertsPortMacquarie.com.au

What about my business or Company debts?

Sometimes when it comes to Bankruptcy we can help you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Generally you may have to liquidate a company to deal with the debt that way. And when it comes to Bankruptcy, it can be a complicated area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Experts Port Macquarie we specialise in business and personal debts so give us a call here at Bankruptcy Experts Port Macquarie if you have any questions regarding Bankruptcy on 1300 795 575. Or feel free to go to our website: www.bankruptcyexpertsPortMacquarie.com.au

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

Bankruptcy Port Macquarie is a difficult process, but I know from meeting with thousands facing the prospect of bankruptcy over the years, that nothing at all concerns people more than the idea of losing the family home. Almost every person is emotionally connected to their home - it's where the children have grown, it's where you appreciate life on a day to day base.

Will you lose your house if you go bankrupt? The answer is a resounding maybe. (not very useful, I know) People typically feel it's an inevitable consequence and a part of Bankruptcy, and because of this 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 benefit 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 Port Macquarie house, you ask? It's easier if I explain the basic idea behind the Bankruptcy process as administered by the trustee, then you'll have a more clear idea.

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

Within that regulatory framework, the trustee is to help recuperate monies owed to your creditors, that is carried out in a bunch of different ways but it mainly comes down to income and assets. The trustees role is to collect payments beyond your income threshold. The further role is to sell any assets that can contribute to paying your debts.

What this seems like is that yes the trustee will sell your house right? Not normally. 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 increasingly more since the GFC as house prices in many areas have been heading south so what you paid 4 years ago may not actually reflect the price today.

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

You might wonder, why would the bank want bankrupt customers? wouldn't they like to sell your house and not take the risk? The bank that has generously 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 wants you in there at all costs. Ultimately however it's not the bank's call if the trustee establishes that there is plenty 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 note 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 suggestions or a real estate agents advice to arrive at this figure. When you get a valuer out to your home, ensure that 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 offer two valuations: one for a quick sale and one for a well marketed non time delicate sale. These days that's not the case, but if you meet them and tell them you need to sell your home in the next 30 days you may control the result. The idea is that you want a sensible sell now figure.

There are two reasons this valuation technique is critical to you: one you may have peace of mind ascertaining the market value of your house, and after that you can easily establish your equity position. Second of all, your property may be worth much more than you thought. Get some guidance before doing this. The number of times I've seen clients that have sold their family home of 20 years simply to find 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, often houses are bought in joint names. To puts it simply 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 likely numerous scenarios that are likely when it relates to the family home. Bear in mind the non-bankrupt party can buy the bankrupt's part of the house in bankruptcy also. I have to repeat this but get some help on this area of Bankruptcy because it is very tricky and every single case is different.

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 get in touch with Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website: www.bankruptcyexpertsPortMacquarie.com.au.

Bankruptcy in Port Macquarie - Who exactly do I speak to?

Should I talk to my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anyone knows your financial situation well in Port Macquarie, 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 know-how 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 performed as a post graduate speciality course for those who intend to work in the field. Unless your accountant is an insolvency specialist, he wouldn'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 Port Macquarie, they have the tendency to be large firms with very nice offices who charge accordingly.

Should I talk with my Solicitor about Bankruptcy?

No! You can speak with your solicitor in Port Macquarie but more than likely it won't do you much good. Solicitors are really 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 comes to Bankruptcy, the specialists in Port Macquarie generally have either a legal or accounting background, 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 a handful of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you locate one you will pay a hefty price for their expertise.

Should I talk to a financial counsellor about Bankruptcy?

Yes! There are plenty of financial counselling services that can help you with this, they have no hidden agendas and they're a fabulous option for letting you analyze your circumstance when it comes to Bankruptcy. If you are stressing constantly, not sleeping, not eating or over-eating and thinking about money pressures at all times, then get some help.

There are also charitable organizations around Port Macquarie like Lifeline that offer a terrific service. They will be a sounding board if you just need a person to talk about with you what your options are. Don't let your financial problem destroy your life - in the end it's just money.

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 to Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website: www.bankruptcyexpertsPortmacquarie.com.au.

Bankruptcy in Port Macquarie - Changes to aid Small Business and Entrepreneurs

Do you appreciate just how much Bankruptcy PortMacquarie is changing? The Australian Government in late 2015 suggested some underlying 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. At this time, there is a minimum amount of time that you must continue to be bankrupt, having said that, this 3 year period may very well be reduced to just 12 months. So if you are inquiring about Bankruptcy, this news may be rather 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 updates to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that giving protection to 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 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 controversy about this Bankruptcy issue in Port Macquarie that some come up with is that this modification will only strengthen fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to violation of the bankruptcy system. We have looked at the minimum, but on the other side of the matter, The government is not suggesting 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 propositions to change the repercussions of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Port Macquarie, I have a reasonable share of practical experience when it comes to Bankruptcy. And having dealt with thousands of bankruptcy cases in Port Macquarie I have never uncovered someone abusing the system or acting in an unaccountable way as to exploit the bankruptcy laws in Australia. When it comes to Bankruptcy, each week I help a small business owner or entrepreneur go through the very problematic task of bankruptcy, not once have I thought they are happy about it. The average small business owner or entrepreneur in Port Macquarie does not start out taking enormous financial risks with the intent to fail. The media really loves citing the apparent wrongdoing 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 very best and brightest in Port Macquarie 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, managers keeping this country going.

There is a fine line with precisely 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 dissuading people from making problems that land them in trouble and therefore an issue of Bankruptcy. However you also don't want to eliminate the experience and knowledge that business owners have. You undoubtedly don't want to shatter people simply because they have had an honest failure in a large or small start-up enterprise that has not succeeded.

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 minimized because directors are concerned they'll be personally liable in an insolvency arrangement if the new project doesn't work out.

The government's suggested 'safe haven' modifications for directors of companies will allow Australia to more fully explore and innovate, which will make big changes for Bankruptcy. I can not imagine, that these modifications 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 Port Macquarie not a day passes 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 want some help with your debts in Port Macquarie or are just thinking of Bankruptcy, don't hesitate to contact us here at Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website: bankruptcyexpertsportmacquarie.com.au

Bankruptcy in Port Macquarie - does it matter if it is voluntary?

When it comes to Bankruptcy Port Macquarie, often people aren't aware that there can be both voluntary, and involuntary bankruptcy - both of these have distinct methods and rules.

Involuntary bankruptcy happens when somebody you owe money to applies to the court to declare you bankrupt. Generally when you get one of these particular notices, you have actually 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 documentation in then afterwards 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 stop it going to the next level. Other than the way you became bankrupt there is in fact no difference between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt, they're conducted to in the very same way.

However, when it concerns Bankruptcy for this, the stress, torment and fear that accompanies this method is incredible. If you think you are likely to be made bankrupt by someone, get some guidance 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 an individual bankrupt you. Once you are bankrupt, it's generally far too late.

Voluntary Bankruptcy

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

This question is not the same for every person of course, but generally 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 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 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 need to approach Bankruptcy.

In many ways, the ease with which companies/credit providers can default your credit file is not fair. The punishment doesn't seem to equate to the crime in my book. So if you already have defaults on your credit report for 5 years, remember that bankruptcy is on your credit file for a total 7 years then its wiped off completely.

So if your credit rating is a big element 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 contrast is that with a DA or PIA you repay the money and still have it on your file for 7 years.

Bankruptcy

I have mentioned the word a few times now, but when it comes down to it, Bankruptcy is the biggest part, and the element most people are afraid of when they come to me to talk about their financial situation and Bankruptcy. The other side of crime and punishment equation is bankruptcy, and in this 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 extremely generous.

I don't claim to know why that is but a few hundred years ago debtors went to prison. Nowadays I suppose the government assumes 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 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 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 possible options. When getting some advice, always remember that there are always choices when it relates to Bankruptcy in Port Macquarie, so do some study, and Good luck!

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to reach out to Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website: bankruptcyexpertsPortmacquarie.com.au.

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

Bankruptcy Port Macquarie is a complex process, and you ought 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 need to know about going bankrupt is there is no regulation on how much you can earn. However, I will point out that your income is a considerable consideration when working through when it comes to Bankruptcy.

The first thing you need to keep in mind about this area of Bankruptcy is 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 annually. A dependant is someone who lives with you and earns less than $3,124 per year (regardless of their age).

You can make an application for a hardship variation that increases the threshold amount, if you have financial commitments in Port Macquarie such as medical, child care, sizable travel to and from work, or a scenario where your spouse used to work but is no longer able to support the household income.

Some of the interesting parts of Bankruptcy is that your employer will not be informed when you file for bankruptcy. Also, Child support is always taken into consideration in bankruptcy, if you receive child support that is not factored in as income. If you pay child support this will be also thought about, for example if you provide $5,000 child support each year and you have no dependents living with you then your amended net income limit will be $55,332.10.

There are many more issues involving income and what is or isn't regarded as income - if you're not sure, it's a good idea to get qualified advice. The reason you should consider your income as a part of the Big 5 questions here is that bankruptcy is in some cases 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 whilst you are bankrupt to add 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 limitations.

If you think when it comes to Bankruptcy, your situation is more complex, then please get professional advice in Port Macquarie. I may sound like a broken record, but bear in mind that it's always a good idea to work through these options before declaring bankruptcy, since once you have filed the paperwork it's too late to change your mind.

If you want to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then don't hesitate to contact Bankruptcy Experts Port Macquarie on 1300 795 575, or explore our website: bankruptcyexpertsPortmacquarie.com.au.

Bankruptcy in Port Macquarie - Are you going to get bitten?

When people in Port Macquarie 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 see one last sunset before he passes away. The boy was reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They went together only for the snake to in the end attack the boy despite his vow not to do so. The snake's response was 'You knew what I was when you picked me up.

Asking for the right financial advice in Port Macquarie when it pertains to Bankruptcy is a great deal like that little boy's journey, laden with risk and danger, and typically skewed for the benefit of the person providing the advice. In most cases you'll get bitten unless you know what you've picked up before you move forward (avoid the rattlesnakes). I learned the problem with obtaining financial advice as a teenager, and it has been fundamental to Bankruptcy. I'd been keeping my nose to the grindstone 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 quite high and investing your money was quite profitable. I spent a long time researching many different investment options, and I went to visit a few financial advisors. It was crystal 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 a truly different strategy of what I should do. This confused me a lot that it put me off the entire idea of going with any of them.

I'm sure currently you have read enough on the internet to be totally mixed up about Bankruptcy and just what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you might be picking up while you are attempting to get to the bottom of your financial problems in Port Macquarie. In essence, you have to try and recognize what your overarching choices are, do your very own research into where to proceed with your plan for Bankruptcy, and then approach just what you feel is best in Port Macquarie for your requirements. Basically, you have 3 options for who to turn to.

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

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

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and pretty much all you should know when it comes to Bankruptcy.

If you wish to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to consult with Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website:bankruptcyexpertsPortmacquarie.com.au.

Bankruptcy in Port Macquarie - Choices, Choice, Choices

When it comes to Bankruptcy Port Macquarie, there are a load of choices that we get given depending on who we are, who we talk with, and exactly what has gone wrong. 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 Port Macquarie, a lot of the facts you receive on this subject 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 assisting you wrap each of your credit card and personal loans into one neat and tidy package.

I hate to tell you this but they won't be doing it for free. Please do not misunderstand me: if you feel your financial troubles in Port Macquarie may possibly be solved by paying less interest, then go ahead and look into the possibilities. Even a small amount of interest saved over years quickly adds up.

Normally I find if you read this blog you've most likely 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 already has defaults on it so not a single person will give you a loan, consolidated or otherwise,.

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

• You've probably arrived at the point where you've had enough, you're mentally burnt out, you can't go on yet another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it concerns Bankruptcy in Port Macquarie, what's the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Overall 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 agency that advertises on TV. Essentially this process resembles Debt Agreements (DA): The trustee has a meeting with the people you owe money to and these guys arrange a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or perhaps you can offer them assets instead of cash. This may sound acceptable when it comes to the troubles with Bankruptcy - that is up until you discover that one of the obstacles with PIA's is that 75 % of the people you owe money to will need to come to an understanding the deal. If they do not, your plan is denied or ought to be renegotiated.

Generally the people you owe money want all their money back as well as interest. Sometimes they'll opt for beneath 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.

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 heard of creditors settling for 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 clever 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 Port Macquarie 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 contact Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website:bankruptcyexpertsPortmacquarie.com.au.