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

Precisely what Debts are cleared away if I go Bankrupt?

The basic answer is that when it involves Bankruptcy most debts are wiped, and I have added a compendium below for you to look at.

But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) and even any debts arising from uninsured Motor-vehicle claims and educational debts such as HECS or FEE-HELP. These debts are not eliminated 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 genuine security connected to it. So as an 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 may be wiped but the asset needs to be sold or returned. This is just one element that, when it comes to Bankruptcy, it is vital to get professional assistance - like that offered at Fresh Start Solutions Sunshine Coast.

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 eliminated with bankruptcy. If you have a business with any kind of debts receive some advice because it is not always so easy. Feel free to call us here at Fresh Start Solutions Sunshine Coast if you have any type of questions on 1300 818 575. Or feel free to check out our website: www.freshstartsolutions.com.au/bankruptcy-SunshineCoast.com.au

What about my business or Company debts?

Sometimes when it concerns Bankruptcy we can assist you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Generally you may need to liquidate a company to deal with the debt this 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 Fresh Start Solutions Sunshine Coast we specialise in business and personal debts so give us a call here at Fresh Start Solutions Sunshine Coast if you have any questions regarding Bankruptcy on 1300 818 575. Or feel free to check out our website: www.freshstartsolutions.com.au/bankruptcy-SunshineCoast.com.au

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

Precisely what Debts are cleared away if I go Bankrupt?

 The basic answer is that when it involves Bankruptcy most debts are wiped, and I have added a compendium below for you to look at.

But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) and even any debts arising from uninsured Motor-vehicle claims and educational debts such as HECS or FEE-HELP. These debts are not eliminated 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 genuine security connected to it. So as an 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 may be wiped but the asset needs to be sold or returned. This is just one element that, when it comes to Bankruptcy, it is vital to get professional assistance - like that offered at Fresh Start Solutions Sunshine Coast.

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 eliminated with bankruptcy. If you have a business with any kind of debts receive some advice because it is not always so easy. Feel free to call us here at Fresh Start Solutions Sunshine Coast if you have any type of questions on 1300 818 575. Or feel free to check out our website: www.freshstartsolutions.com.au/bankruptcy-SunshineCoast.com.au

What about my business or Company debts?

 Sometimes when it concerns Bankruptcy we can assist you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Generally you may need to liquidate a company to deal with the debt this 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 Fresh Start Solutions Sunshine Coast we specialise in business and personal debts so give us a call here at Fresh Start Solutions Sunshine Coast if you have any questions regarding Bankruptcy on 1300 818 575. Or feel free to check out our website: www.freshstartsolutions.com.au/bankruptcy-SunshineCoast.com.au

Bankruptcy, Will I lose my Superannuation?

Bankruptcy in Australia can be convoluted and perplexing. A question we usually get asked here at Fresh Start Solutions Sunshine Coast is 'what happens to my super if I apply for Bankruptcy'? The answer for most is simple, if your super is usually in a regulated fund or industry fund like Sunsuper or Host Plus then absolutely nothing happens; your super is 100 % safe when it comes to Bankruptcy.

What if I have a Self Managed Super Fund?

This is a growing concern, think about the growing number of members of Self-Managed Super Funds ("SMSFs") over the last few years; the ATO tells us it has grown Australia-wide from 758,589 in 2009 to 1,011,689 in 2014. So what happens to these Superfunds when it comes to Bankruptcy?

Remember Fresh Start Solutions Sunshine Coast is not implying this article is the complete story, if you have any questions feel free to consult with us on 1300 818 575. Whether you call us or somebody else it does not matter, just please don't walk into bankruptcy blind when it comes to your SMSF in truth we highly recommend you ask for both legal and financial advice before proceeding with any of the actions recommended in this article.

What is a Disqualified Person?

First and foremost, if you are considering Bankruptcy, you can not be a part of a SMSF. Why? Because if you are being confronted by bankruptcy, you will be identified as a 'disqualified person'. And a disqualified person cannot operate as an Individual Trustee. This poses a problem because usually most of the SMSFs are just 2 people, which means the two of these members will need to also be the individual trustees. The duty of trustee poses a lot of legal rules, and if you are in this role I would highly recommend you to become familiar with them all-- including the fact that you can not 'know or suspect' that one of you are bankrupt. So you can see how an individual bankruptcy can be quite harmful to a SMSF and as you can imagine the process of Bankruptcy for a SMSF is rather convoluted.

How long do I have to restructure my SMSF Fund once I'm bankrupt?

So what develops if one of the members of an SMSF does enter Bankruptcy?

For starters, the SMSF will need to be reorganized. This means that you will want to consider your whole structure and ensure that it is meeting the basic conditions, involving having a new trustee that is not having issues with Bankruptcy. The Australian Tax office will provide you a 6 month 'grace period' to get this done before you face penalties. And consider, sometimes the most suitable plan would be to simply roll the fund into an industry or corporate fund.

Beyond these large scale restructuring issues, there is a lot of paperwork to deal with too, and you need to be constantly keeping the ATO informed of what is happening. This suggests you ought to let them know that you have a bankruptcy issue with your current trustee, that they are being removed as soon as possible know who the new trustee/director is. The Bankrupt will also have to inform the ATO using the form NAT 3036 (Found on the ATO website) and they need to also notify ASIC of their resignation.

In the course of that 6 month period you will need to remove the Bankrupt from the SMSF-- including their property and assets. Remember if you are uncertain call Fresh Start Solutions Sunshine Coast for some free advice on 1300 818 575.

What if I have a single member fund?

If you are a single member fund, then you will need to appoint a new director, and it will then become their obligation to oversee the sale and relocation of assets into a managed fund. If there are two or more members, than the bankrupt member will have to resign and the other member will take away the property and halve the proceeds. They would then need to decide if they want to remain as a single member SMSF, or if they want to roll it all into a managed fund. If both members are entering bankruptcy, then they will need to sell all assets promptly and move the liquid assets to the managed fund.

From this you can notice how when it comes to Bankruptcy, even when one single member is running into issues, it can affect the very existence of an SMSF. If you are at this point facing this issue yourself, or with a partner in a SMSF, please seek financial advice to make certain you are satisfying the ATO requirements.

A simple solution ...

As I recommended earlier, a straightforward solution to your SMSF issue is to put your super back into a normal regulated managed fund prior to bankruptcy and save yourself all the problems outlined above. Bankruptcy is never easy, but getting proper advice is the best initial step. If you want to discuss your options further, call us at Fresh Start Solutions Sunshine Coast or visit our website: www.freshstartsolutions.com.au/bankruptcy-SunshineCoast.com.au or just call us on 1300 818 575.

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 likelihood of bankruptcy over the years, that absolutely nothing concerns people more than the idea of losing the family home. Almost everyone is sentimentally connected to their home - it's where the children have grown up, it's where you take pleasure in life on a day to day base.

Will you lose your house if you go bankrupt? The response is a resounding maybe. (not very helpful, I know) People typically presume 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 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 Sunshine Coast 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 more clear image.

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

Within that regulatory framework, the trustee is to help recover monies owed to your creditors, that is executed in a bunch of diverse ways but it mainly comes down to income and assets. The trustees role is to collect payments over and above your income threshold. The further 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 normally. The only reason the trustee will sell any asset including your house is to get money to pay back your debts. If there is no equity in your house then it's pointless to sell your home. This is happening increasingly since the GFC as house prices in many locations have been heading south so what you paid 4 years ago may not really reflect the price today.

A quick tip here if you have a house in Sunshine Coast 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 clients? wouldn't they hope 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, so long as you keep up to date with your fees then the bank really wants you in there at all costs. Ultimately however it's not the bank's call if the trustee decides that there is ample 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 put down the value of your house and the level you owe on the house. A tip if you are trying to work out the value of your house: use a registered valuer as this will provide you peace of mind, don't use your neighbours' gut feel recommendations or a real estate agents advice to reach this figure. When you get a valuer out to your property, see to it 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 delicate sale. These days that's not the case, but if you meet them and let them know you need to sell the house in the next 30 days you may sway the result. The idea is that you want a reasonable sell now figure.

There are two reasons this valuation system is critical to you: one you will definitely have peace of mind ascertaining the market value of your house, and afterwards you can easily build your equity position. The second thing is, your home may be really worth much more than you thought. Get some advice before carrying this out. The number of times I've met with clients that have sold their family home of 20 years just to figure out I could of helped them keep it; unfortunately this happens all too often

When it concerns Bankruptcy and houses, another major consideration is ownership, in many cases houses are bought 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 concerns Bankruptcy, this is just one of possibly hundreds of scenarios that are possible when it comes down 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 guidance on this area of Bankruptcy because it is very tricky and every single case is different.

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

Bankruptcy in Sunshine Coast - Who do I speak to?

Should I consult with my accountant about Bankruptcy?

The answer seems obvious doesn't it: if anybody 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 skills lie in helping you save you money at tax time, reducing your tax liability and lodging your BAS.

Most accounting degrees will devote hardly any to no time on insolvency, it's generally done as a post graduate speciality course for those who wish to work in the field. Unless your accountant is an insolvency expert, he won't know that a lot about the implications of Bankruptcy, I can guarantee 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 often tend to be large firms with very nice office spaces who charge accordingly.

Should I chat with my Solicitor about Bankruptcy?

No! You can speak to your solicitor in Sunshine Coast but more than likely it won't do you much good. Solicitors are really good at undertaking things lawyers do, like helping you do your Will and buying your house and keeping you out of court if you're lucky. When it relates to 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 start in the post graduate study to become a qualified insolvency practitioner except if you have a law or accounting degree.

Just as there are a couple of insolvency accounting firms, there are very few insolvency legal practices in Australia, and yes if you locate one you will pay a sizeable price for their expertise.

Should I speak with a financial counsellor about Bankruptcy?

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

There are also charitable organizations around Sunshine Coast like Lifeline that offer a remarkable service. They will be a sounding board if you just need somebody to talk about with you what your choices are. Don't let your financial trouble destroy your life - ultimately it's just money.

If you 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 Fresh Start Solutions Sunshine Coast on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-Sunshine Coast

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

When people in Sunshine Coast come to me wanting to talk about Bankruptcy, they are always filled with questions. The internet has lots of information, but far too much of it is confusing or contradicts itself, so I make it my mission to try and make it more clear. One of the most routine matters is 'Will I lose my business if I declare bankruptcy?' The concise answer is no. If you are a manager of a company any shape or size you can maintain your business if you want to. In Sunshine Coast, businesses that become 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 professional advice on this if you have a business. Generally speaking, the financial debts in a business and personal debts go hand in hand when a business owner goes bankrupt. There are some crucial 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 soon after you're bankrupt.

A limitation that applies when you are bankrupt as a business owner is that you can be in your own business as a sole trader only. There are things you will need to disclose as an aspect of that but ultimately you can still run your business. For some business owners, bankruptcy impacts 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 involves licenses and Bankruptcy in Sunshine Coast.

On the other hand if your business is not impacted directly by such issues, then you'll have 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 company, then go bankrupt and afterwards open the doors the next day like practically nothing had happened. There are laws in place to stop what is called phoenix companies popping up out of the ashes of an old company.

Having said that, it's just a point of talking with the correct people about Bankruptcy. In this circumstance you may believe you need a liquidator for your company, and you may be right, but keep that in mind every liquidator is unique and have their own motives. Liquidators profit from your liquidation - heaps of money - so just what advice do you believe you will get?

When it comes to Bankruptcy, I think that giving generic advice in this area is possibly damaging as it can have very serious implications for directors and business owners. This is considering that it is just one of those cases where what the right advice for one business owner is the incorrect advice for the other. There are some basics however, that you may benefit from. There is no restriction to the size of the business you run while you are bankrupt. You can employ staff. You can continue to deal with your vendors 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 best 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 contact Fresh Start Solutions Sunshine Coast on 1300 818 575, or visit our website: .freshstartsolutions.com.au/bankruptcy-Sunshine Coast

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 - each have unique approaches and guidelines.

Involuntary bankruptcy occurs when someone you owe money to involves the court to declare you bankrupt. Generally when you get one of these notices, you have actually 21 days to pay all the debt. If you do not, then the creditor returns to the court and requests the court to issue a sequestration order that declares you bankrupt. A trustee is selected, and then you have 14 days to get the paperwork in and afterwards you are bankrupt.

You can challenge a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to stop it going to the next level. Apart from the way you became bankrupt there is in fact no distinction between Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt, they're managed 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 prone to be made bankrupt by someone, get some assistance and act on that advice. Generally I've found it's always better to know what you can and can't do before you have an individual bankrupt you. Once you are bankrupt, it's normally far too late.

Voluntary Bankruptcy

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

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

In many ways, the ease with which companies/credit providers can default your credit file is unfair. The punishment doesn't seem to equal the crime in my book. So if you actually have defaults on your credit report for 5 years, remember 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 element in trying to decide whether to take part 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 contrast is that with a DA or PIA you repay the money and nevertheless 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 more 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 provisions are very generous: you can go bankrupt owing millions of dollars and after 3 years it's all over with no strings attached. Compared with countries like the United States, our bankruptcy laws are really good.

I don't claim to know why that is but a few hundred years ago debtors went to prison. These days 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 all of your debts including ATO debts with the exception of a few things:

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

·         HECS or Fee Help loans.

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

There is a lot more that can be said about doing this and Bankruptcy in general but the objective of this blog was to help you decide between a few readily available options. When getting some advice, don't forget that there are always possibilities when it comes to Bankruptcy in Sunshine Coast, so do some research, and Good luck!

If you would like to find out more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then feel free to check with Fresh Start Solutions Sunshine Coast on 1300 818 575, or visit our website:freshstartsolutions.com.au/bankruptcy-Sunshine Coast