Going Bankrupt in Alice Springs – does it matter if it is voluntary?

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When it comes to Going Bankrupt Alice Springs, usually people aren’t aware that there can be both voluntary, and involuntary bankruptcy – both have unique methods and policies.

Involuntary bankruptcy takes place when a person you owe money to involves the court to declare you bankrupt. Usually when you get one of these notices, you have normally 21 days to pay all the debt. If you don’t, then the creditor goes back to the court and asks the court to issue a sequestration order that declares you bankrupt. A trustee is appointed, and then you have 14 days to get the documents in and then you are bankrupt.

You can object to a bankruptcy notice by going to court right after the 21 days have expired and put your case forward, to prevent it going to the next level. Apart from the way you became bankrupt there is in fact no distinction 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 Going Bankrupt for this, the stress, torment and fear that accompanies this method is incredible. If you think you are probable to be made bankrupt by someone, get some advice and act on that advice. Generally I’ve found it’s always more effective to know what you can and can’t do before you have somebody bankrupt you. Once you are bankrupt, it’s usually far too late.

Voluntary Bankruptcy

Nevertheless, when it comes to Going Bankrupt, sometimes there are moments that it is the best option. So you may have 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 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 serve to help you make that decision, and help you to understand Going Bankrupt.

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 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 truly damaged for that period of time – and all of this will impact how you need to approach Going Bankrupt.

In many ways, the ease with which companies/credit providers can default your credit file is unfair. 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 erased completely.

So if your credit rating is a big aspect 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.


I have stated 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 Going Bankrupt. 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 over with no strings attached. As compared to countries like the United States, our bankruptcy laws are very good.

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 finds that 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 every one 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 this and Going Bankrupt in general but the objective of this blog was to help you decide between a few possible options. When getting some advice, keep in mind that there are always possibilities when it involves Going Bankrupt in Alice Springs, so do some legwork, and Good luck!

If you want to learn more about just what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to reach out to Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website:bankruptcyexpertsAlice Springs.com.au.


Bankruptcy Advice in Alice Springs – Will my income be changed if I go bankrupt?

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Bankruptcy Advice Alice Springs is a complicated process, and you should make sure you get the right suggestions. 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 constraint on how much you can earn. However, I will point out that your income is a major consideration when working through when it comes to Bankruptcy Advice.

The very first thing you need to know about this area of Bankruptcy Advice is just 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 portion 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 look for a hardship variation that raises the threshold amount, if you have costs in Alice Springs like medical, child care, serious travel to and from your job, or a situation where your spouse used to work but is no longer able to add to the family income.

Some of the intriguing parts of Bankruptcy Advice is that your employer will not be told 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 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 many more issues encompassing income and what is or isn’t considered income – if you’re not exactly sure, it’s recommended to get experienced advice. The reason you need 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 add toward your tax bill. If you don’t have a tax bill then you will keep your tax refund so long as that doesn’t take you over your threshold income limits.

If you believe that when it comes to Bankruptcy Advice, your situation is more intricate, then please get expert advice in Alice Springs. I may sound like a broken record, but remember that it’s always a smart idea to work through these options prior to declaring bankruptcy, because once you have filed the paperwork it’s far too late to change your mind.

If you wish to find out more about what to do, where to turn and what issues to ask about Bankruptcy Advice, then feel free to contact Bankruptcy Experts Alice Springs on 1300 795 575, or check out our website:bankruptcyexpertsAliceSprings.com.au.

Going Bankrupt in Alice Springs – Choices, Choice, Choices

When it comes down to Going Bankrupt in Alice Springs, there are a number of choices that we get given depending upon who we are, who we talk to, and exactly what has gone wrong. The most common confusion I see with Going Bankrupt is when it comes to choosing between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Going Bankrupt in Alice Springs, a lot of the related information you receive on this topic will reflect the interests of the advice giver. Therefore, if you call a debt consolidation provider, I can promise you they will tell you to consolidate your debts. The debt consolidation operation is a multi-billion dollar industry making money in one very simple 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 guys aren’t doing it free of charge. Please do not misunderstand me: if you consider your financial problems in Alice Springs can possibly be fixed by paying less interest, then go ahead and check out the options. Even a tiny amount of interest saved over years easily adds up.

Normally I find if you are reading this blog you’ve most likely attempted to consolidate your debts already and come to the following realisations like 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 on a small amount of interest just won’t make a great deal of difference,.
  • You’ve very likely gotten to the stage 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 etc.

Personal Insolvency Agreements

So when it comes down to Going Bankrupt in Alice Springs, what’s the big difference between a Debt Agreement and a Personal Insolvency Agreement?

Adaptability 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 featuring the government trustee ITSA, and not a private company that advertises on TV. Ultimately this process is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these guys work out a deal in your place. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets instead of cash. This can sound okay when it comes to the complications with Going Bankrupt – that is until you discover that one of the difficulties with PIA’s is that 75 % of the people you owe money to must agree on the deal. If they do not, your proposal is rejected or will have to be renegotiated.

Generally the people you owe money want all their money back plus interest. Sometimes they’ll go for less than the amount you owe them – it’s normally a percentage of the debt– but let me 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 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 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 Going Bankrupt 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 Alice Springs aren’t going to get that lucky!

If you would like to find out more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to contact Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: bankruptcyexpertsAliceSprings.com.au.

Going Bankrupt in Alice Springs – Are you going to get bitten?


When people in Alice Springs ask me about Going Bankrupt, I let them know the classic 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 dies. 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 bites the boy despite his promise not to do so. The snake’s reply was ‘You knew what I was when you picked me up.’

Getting the right financial advice in Alice Springs when it concerns Going Bankrupt is a lot like that little boy’s experience, laden with risk and danger, and usually skewed for the benefit of the individual providing the advice. In most cases you’ll get bitten unless you know what you’ve picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with receiving financial advice as a teenager, and it has been fundamental to Going Bankrupt. 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 rather high and investing your money was very profitable. I spent a few years researching different investment options, and I went to visit a few financial advisors. It was transparent that they had more money than I did: they had great suits and plush offices; they all seemed to exude confidence and have all the solutions. What struck me was that they all had an extremely different strategy of what I should do. This confused me a lot that it put me off the entire idea of choosing any of them.

I’m sure currently you have read enough on the internet to be totally mixed up about Going Bankrupt and precisely what to do. It would undoubtedly be easier for me to help you learn about the nature of the financial snakes you may be picking up while you are trying to get to the bottom of your financial concerns in Alice Springs. Basically, you need to try and recognize what your overarching alternatives are, do your very own research into where to proceed with your strategy for Going Bankrupt, and then approach just what you feel is best in Alice Springs for your requirements. Essentially, you have 3 options for whom to turn to.

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

Another solution you may think about is your accountant – they are incredibly useful and vital to the process of operating your business, but for the most part, when you are thinking of Going Bankrupt, your accountant won’t be much help to you anymore.

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

If you would like to learn more about what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to consult with Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: WWW.bankruptcyexpertsAliceSprings.com.au.

Going Bankrupt in Alice Springs – Changes that help Small Business and Entrepreneurs

^2A61F079CF438EADF65425CDC6F8840F667C9DBFBEEEFD2E0F^pimgpsh_fullsize_distrDo you have an idea of just how much Going Bankrupt in Alice Springs is changing? The Australian Government at the end of 2015 set forth some progressive 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 remain 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 quite important to you.

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

These changes to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that shielding family assets was very important because “banks just terrorise small business and the mental health consequences to society are enormous”.

The problem is Australia’s bankruptcy laws prevented 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 controversy about this Going Bankrupt issue in Alice Springs that some come up with is that this shift will only push fraudulent behavior opening pandora’s box in a manner of speaking for the unscrupulous to misuse of the bankruptcy system. We have looked at the minimum, but on the other side of the issue, The government is not proposing to change the maximum term of 8 years if it deems a bankrupt has performed in an unethical or fraudulent way, and there are no proposals to change the outcomes of misrepresenting yourself or financial position when filing for bankruptcy in Australia.

As a bankruptcy professional in Alice Springs, I have a fair share of knowledge when it comes to Going Bankrupt. And having dealt with thousands of bankruptcy cases in Alice Springs I have never come across someone abusing the system or acting in an immoral way as to exploit the insolvency laws in Australia. When it comes to Going Bankrupt, every week I help a small business owner or entrepreneur suffer through the very formidable task of bankruptcy, not once have I thought they are happy about it. The normal small business owner or entrepreneur in Alice Springs does not start out taking enormous financial risks with the intention to fail. The media loves citing the apparent misuse 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 best and brightest in Alice Springs not get tossed out of the game financially for financial decisions often outside of their control. Most small business owners I help with Going Bankrupt, are hardworking, tax paying, companies keeping this country going.

There really is a fine line with exactly what the government is trying to do here, because they are aiming to balance helping people who have made decisions out of their control, and preventing people from making errors that land them in trouble and as a result an issue of Going Bankrupt. However you also don’t want to get rid of the experience and knowledge that business owners have. You absolutely don’t want to smash people simply because they have had an honest failure in a large or small start-up enterprise that has not panned out.

At the big end of town large well-known 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 lowered because directors are worried they’ll be personally responsible in an insolvency arrangement if the new venture 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 updates for Going Bankrupt. I cannot imagine, that these revisions will be detrimental to Australia’s economy, indeed 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 Going Bankrupt in Alice Springs not a day goes by where I don’t find out the tragic stories of relationship failures, thoughts of suicide and the list goes on.

Going Bankrupt helps save lives, and it could save yours. If you need some assistance with your debts in Alice Springs or are just thinking about Going Bankrupt, don’t hesitate to phone us here at Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: http://www.bankruptcyexpertsalicesprings.com.au