Going Bankrupt in Albury – Choices, Choice, Choices

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When it comes down to Going Bankrupt in Albury, there are a load of choices that we get given depending upon who we are, who we approach, and what exactly has gone wrong. Among the most common confusion I see with Going Bankrupt is when it comes to selecting between Debt Consolidation, Personal Insolvency Agreements, and Bankruptcy itself.

Should I consolidate my debts?

When it comes to Going Bankrupt in Albury, most of the facts you receive on this subject matter 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 business 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 one neat and tidy bundle.

I hate to tell you this but these guys aren’t going to be doing it for free. Please do not misunderstand me: if you consider your financial issues in Albury might be fixed by paying less interest, then go on and explore the possibilities. Even a tiny amount of interest saved over years quickly adds up.

More often than not 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 no good, and your credit file definitely has nonpayments 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 little bit of interest simply won’t make a lot of difference,.
  • You’ve most probably arrived at the point 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 etc.

Personal Insolvency Agreements

So when it comes to Going Bankrupt in Albury, what’s the huge difference between a Debt Agreement and a Personal Insolvency Agreement?

Freedom is the main point Personal Insolvency Agreements (PIA) have in their favour. They’re also administered by a registered and – might I add – regulated trustee featuring the government trustee ITSA, and not a private organization that advertises on TV. Basically this method resembles Debt Agreements (DA): The trustee holds a meeting with the people you owe money to and they mediate a deal on your behalf. You can give a lump sum settlement figure or enter into a payment plan, or maybe you can offer them assets as an alternative to cash. This can sound fine when it comes to the issues with Going Bankrupt – that is until you realize that one of the problems with PIA’s is that 75 % of the people you owe money to have to agree on the deal. If they don’t, your proposal is denied or needs to be renegotiated.

Generally the people you owe money prefer all their money back in addition to interest. Sometimes they’ll settle for beneath the amount you owe them – it’s generally 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 because your creditors are greedy or have a mean streak, it’s because the administrators take 20 % of whatever is decideded 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 come across creditors choosing 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 wise 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 Albury aren’t going to get that lucky!

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


Going Bankrupt in Albury – Are you going to get bitten?

Going to get bitten

When people in Albury ask me about Going Bankrupt, I let them know the simple 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 pledged 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 reply was ‘You knew what I was when you picked me up.’

Obtaining the right financial advice in Albury when it concerns Going Bankrupt is a whole lot like that little boy’s journey, fraught with risk and danger, and typically skewed for the benefit of the person providing 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 obtaining financial advice as a teenager, and it has been key to Going Bankrupt. 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 rather high and investing your money was really profitable. I spent a few years 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 appeared to exude confidence and have all the answers. What hit me was that they all had a really different idea of what I should do. This puzzled me so much that it put me off the whole idea of opting for any of them.

I’m sure currently you have read enough on the internet to be totally puzzled about Going Bankrupt and exactly what to do. It would most likely be easier for me to help you learn about the nature of the financial snakes you may be grasping while you are trying to get to the bottom of your financial troubles in Albury. In essence, you need to try and understand what your overarching alternatives are, do your very own research into where to proceed with your plan for Going Bankrupt and then approach what you feel is best in Albury for your needs. Basically, you have 3 options for whom to turn to.

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

Another possibility you may consider is your accountant – they are incredibly helpful and vital to the process of operating your business, but for the most part, when you are considering 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 virtually all you have to figure out when it comes to Going Bankrupt.

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 speak to Bankruptcy Experts Albury on 1300 795 575, or visit our website: bankruptcyexpertsalbury.com.au

Going Bankrupt in Albury – Changes that help Small Business and Entrepreneurs

^2A61F079CF438EADF65425CDC6F8840F667C9DBFBEEEFD2E0F^pimgpsh_fullsize_distrDo you know how much Going Bankrupt Albury is changing? The Australian Government at the end of 2015 moved for some radical 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. Now, there is a minimum amount of time that you must remain bankrupt, however, this 3 year period may in fact be reduced down to just 12 months. So if you are asking about Bankruptcy, this news may be somewhat 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 adjustments to the issue of Going Bankrupt will take 18 months to implement. Mr Carnegie, went on to say in the Financial Review that protecting 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 deterred 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 argument about this Going Bankrupt issue in Albury that some make is that this change 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 suggestions to change the repercussions of misrepresenting yourself or financial situation when filing for bankruptcy in Australia.

As a bankruptcy professional in Albury, I have a fair share of practical experience when it comes to Going Bankrupt. And having dealt with thousands of bankruptcy cases in Albury I have never come across someone abusing the system or acting in a careless 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 look at the very challenging task of bankruptcy, not once have I thought they are happy about it. The average small business owner or entrepreneur in Albury 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 proposed changes will be good for often the most effective and brightest in Albury 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, managers keeping this country going.

There certainly is a fine line with just what the government is trying to do here, since they are attempting 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 Going Bankrupt. However you also don’t want to wipe out the experience and knowledge that business owners have. You definitely don’t want to smash people simply because they have had a sincere failure in a large or small start-up enterprise that has not panned out.

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 insolvency were lowered because directors are distressed they’ll be personally responsible in an insolvency arrangement if the new project doesn’t work out.

The government’s suggested ‘safe haven’ modifications for directors of companies will enable Australia to more fully explore and innovate, which will make big changes for Going Bankrupt. I cannot imagine, that these differences will be harmful to Australia’s economy, indeed these bankruptcy laws will save the tax payer in all areas of health – Especially in the mental health industry because the emotional cost of bankruptcy is enormous. When it comes to Going Bankrupt in Albury not a day goes by where I don’t find out the tragic experiences of relationship failures, thoughts of suicide and the list continues.

Going Bankrupt helps save lives, and it could save yours. If you really need some assistance with your debts in Albury or are just considering Going Bankrupt, don’t hesitate to phone us here at Bankruptcy Experts Albury on 1300 795 575, or visit our website: bankruptcyexpertsalbury.com.au.