Bankruptcy in Darwin - Choices, Choice, Choices

When it comes to Bankruptcy Darwin, there are a load of choices that we get given depending on who we are, who we approach, and what exactly has happened. Among the most common confusion I see with Bankruptcy is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Bankruptcy in Darwin, a lot of the information you receive on this issue will reflect the interests of the advice giver. That is why, if you call a debt consolidation firm, 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 straightforward way: charging you a fee for aiding you wrap all of your credit card and personal loans into just one neat and tidy package.

I hate to tell you this but they aren't going to be doing it free of charge. Please do not misunderstand me: if you believe your financial troubles in Darwin can be fixed by paying less interest, then go ahead and look into the possibilities. Even a tiny amount of interest saved over years quickly adds up.

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

• Your credit rating is not good, and your credit file definitely has defaults on it so not a single person will give you a loan, consolidated or otherwise,.

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

• You've undoubtedly reached the stage where you've had enough, you're emotionally fatigued, you can't go on another day ignoring blocked calls on your phone, ignoring the demands in the mail and so forth.

Personal Insolvency Agreements

So when it comes to Bankruptcy in Darwin, what's the 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 - might I add - regulated trustee including the government trustee ITSA, and not a private company that advertises on TV. Basically this method is similar to Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and these experts work out a deal on your behalf. You can offer a lump sum settlement figure or take part in a payment plan, or maybe you can offer them assets as an alternative to cash. This may sound acceptable when it comes to the issues with Bankruptcy - that is up until you discover that one of the difficulties with PIA's is that 75 % of the people you owe money to will need to agree on the deal. If they do not, your proposal is denied or will need to be renegotiated.

Generally people you owe money want all their money back plus interest. Sometimes they'll go for under the amount you owe them - it's generally a percentage of the debt - but allow me to stress this part: because of all the variables involved in the negotiation process to put together a PIA its difficult to put a figure on what the people you owe money to will in fact settle for.

Most of the time 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 choosing 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 clever lawyers and some very clever structures in place and they offer 5 % of the debt, you might take it and be grateful. Sadly, ordinary punters like you and me in Darwin aren't going to get that lucky!

If you want to learn more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to get in touch with Bankruptcy Advice Darwin on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Darwin .

Bankruptcy in Darwin - Are you going to get bitten?

When people in Darwin 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 reluctant, but the rattlesnake promised not to bite him in exchange for the ride. They travelled together only for the snake to ultimately 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 Darwin when it concerns Bankruptcy is a lot like that little boy's experience, laden with risk and danger, and normally skewed for the benefit of the individual offering the advice. Often you'll get bitten except if you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with getting financial advice as a teenager, and it has been key to Bankruptcy. I'd been keeping my nose to the grindstone 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 pretty high and investing your money was really profitable. I spent a long time researching varied 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 seemed to exude confidence and have all the solutions. What struck me was that they all had an extremely different idea of what I should do. This confused me a lot that it put me off the entire idea of picking any of them.

I'm sure currently you have read enough on the internet to be totally bewildered about Bankruptcy and what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you could be picking up while you are attempting to get to the bottom of your financial concerns in Darwin. In essence, you need to try and understand what your overarching choices are, do your very own research into where to proceed with your plan for Bankruptcy, and after that approach what you feel is best in Darwin for your needs. Essentially, you have 3 options for whom to turn to.

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

Another alternative you may think about is your accountant - they are incredibly useful and vital to the task of managing your business, but for the most part, when you are considering Bankruptcy, your accountant won't be much help to you any longer.

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

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 Advice Darwin on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Darwin.

Bankruptcy in Darwin - Changes that help Small Business and Entrepreneurs

5th February 2016 - By Charles Bosse

Do you have knowledge of just how much Bankruptcy in Darwin is changing? The Australian Government in late 2015 put forward some underlying changes to the Bankruptcy Laws in Australia. Among the most significant of these is the length of time that a person is bankrupt for. Now, there is a minimum amount of time that you must stay 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 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 updates to the issue of Bankruptcy will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that defending 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 deterred 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 around this Bankruptcy issue in Darwin that some come up with is that this change will only encourage fraudulent behavior opening pandora's box in a manner of speaking for the unscrupulous to misuse of the bankruptcy system. We have looked into 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 performed in an unethical or fraudulent way, and there are no recommendations to change the penalties of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Darwin, I have a decent share of knowledge when it concerns Bankruptcy. And having dealt with countless bankruptcy cases in Darwin I have never come across someone abusing the system or acting in an irresponsible 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 tough task of bankruptcy, not once have I perceived they are happy about it. The average small business owner or entrepreneur in Darwin does not start out taking enormous financial risks with the intention to fail. The media really loves citing the apparent abuse 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 best and brightest in Darwin not get kicked out of the game financially for financial decisions often outside 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, since they are aiming to balance helping people who have made decisions out of their control, and preventing people from making blunders that land them in trouble and therefore an issue of Bankruptcy. However you likewise don't want to eliminate the experience and knowledge that business owners have. You surely 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 gone well.

At the major end of town large reputable 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 troubled they'll be personally responsible in an insolvency arrangement if the new venture doesn't work out.

The government's suggested 'safe haven' changes for directors of companies will enable Australia to more fully explore and innovate, which will make big updates for Bankruptcy. I can not imagine, that these variations will be damaging to Australia's economy, in fact these bankruptcy laws will save the tax payer in all areas of health - Especially in the mental health field because the emotional cost of bankruptcy is extensive. When it comes to Bankruptcy in Darwin not a day goes by where I don't find out the tragic experiences of relationship failures, thoughts of suicide and the list goes on.

Bankruptcy helps save lives, and it could save yours. If you are in need of some help with your debts in Darwin or are just considering Bankruptcy, feel free to give us a call here at Bankruptcy Advice Darwin on 1300 879 867, or visit our website: www. bankruptcy-advice.com.au/darwin