Voluntary Bankruptcy advice and assistance

There is more false information about bankruptcy and tax than most other issues.

BIG FACT – ATO personal and sole trader Tax is cleared/wiped/extinguished in bankruptcy.

If you have a company (Pty Ltd) contact us for advice.

If you want to clarify a personal tax position contact us for advice.

1 – The car is owned and there is no secured loan against the title of the vehicle.

The value of the car can not exceed $9,100.00. There can be more than one vehicle as long as the total is less than this threshold and the vehicles are used for transport.

The value is not car yard (retail value), but wholesale value. What this means is that most people who have a $12,000.00 car will find that for bankruptcy purposes the car is under the limit and they will be able to keep it.

If the car is still valued at more than the threshold and the trustee wants to sell it the trustee has to give the bankrupt $9,100.00 so they can buy a car.

2 – If the car is owned with a partner or somebody else the threshold doubles to $18,200. This is whether or not both are going to declare bankruptcy.

3 – The car is used as security for a loan.

If the car is leased or is collateral for a loan the value of the car now does not matter as long as payments can be afforded (and the want to keep the car). The loan repayments continue. The caveat is that the equity in the car is not more than $9,100.00

The one thing that is important is that the car doesn’t becomes an asset if the loan is finalised prior to the completion of the bankruptcy term.

If you are buying your home and have a mortgage the equity in the home will vest with a Trustee. Depending on circumstances there may be options to get that equity back and in turn keep the home. Seek advice before going bankrupt. Call us today and we will explain how it is likely to work based on the circumstances.

If the home is owned with no mortgage and bankruptcy occurs, the home will vest with a Trustee. This means that the Trustee will sell the home so that the creditors can be paid.

If the bankrupt is renting their home and wants to continue renting it bankruptcy will not affect the situation as long as the rent payments can be made.

Many people think and are told that if they go bankrupt they will lose part of their income. This is not always true. There is a protected amount, which is always the bankrupts to keep. Currently this amount is $1,346.00 after tax per week for a person with no dependants.

The more dependants the higher the protected amount.

Here are the protected amounts. They are all after tax.

Dependants Weekly
0 $1,346
1 $1,588
2 $1,709
3 $1,777
4 $1,804
over 4 $1,830

Contact us and we will explain how it will you.

FACT NUMBER 1. Tax debts will be covered by bankruptcy.

FACT NUMBER 2. Just because someone is Bankrupt it doesn’t mean they can’t be in business for themself. The rules are clear, they can trade under an ABN number. They can not be a Director of a Company. If the business is a registered company (Pty Ltd) advice needs to be obtained

We have assisted many company directors avoid thousands and some times tens of thousands of dollars in unnecessary fees when they need to go bankrupt. Let our experience benefit your situation.

If the business is not making money and has got into a pile of debt, unless you have another option to earn big dollars, going bankrupt will give a fresh start.

We can assist to cease the business including release from any lease that may exist. You can go bankrupt if there are outstanding tax returns due. Don’t believe the old fallacy that tax returns must be up to date and that the person must be unemployed.

There is no need to pay $2,000 or $3,000 or more to get qualified advice and assistance.

These are the fee’s that cover most standard situations. If the situation
is more complicated we will quote a guaranteed fixed fee.

REMEMBER- Our Principle is an AFSA (Australian Financial Security Authority) licensed RDAA. We are also a member of AFCA (Australian Financial Complaints Authority). You have the safety and guarantee of dealing with a legitimate firm.

AFSA do not charge any fee to process and accept your bankruptcy application.

INITIAL CHAT: $FREE – We will briefly cover the situation and let you know how it works and what the client can expect.

CENTRELINK INCOME ONLY FEE $599.00

STANDARD FEE $799.00 covers most people except:
Where there are more than 12 unsecured debts or where there are more than one house sale in the last 5 years.

Director/Self Employed FEE $949.00 when

There are 15 creditors or less.
No more than 1 House sale in last 5 years.
No more than 1 business’s/directorships.

The above fee’s include complete advice for the situation. They include the completion of all paperwork/online work. They include the filing of the Statement of Affairs. They include 1 hour of post bankruptcy advice or assistance with dealing with AFSA and/or the Trustee.

No matter whether the credit score is good or bad going bankrupt will cause the score to be badly affected. It will be bad for 5 years from when bankruptcy starts. After 5 years if nothing else to deflate the score has occurred it will rapidly rise overnight

When you go bankrupt the bankruptcy is recorded on the NPII (National Personal Insolvency Index). There are hundreds of thousands of Australian bankruptcies recorded there. Every bankruptcy is recorded there.

During the 5 years whilst the credit score is affected, borrowing money will be very difficult. On top of this, if trying to borrow more than $6,017.00 during the three years of bankruptcy, there is an obligation to inform the potential lender that you are bankrupt.

This site provides information in plain English to help the bankruptcy process be understood. It is primarily for Consumers along with their Accountants and other financial advisors. You should speak to us to receive professional advice before considering, advising or accepting bankruptcy as a solution.

We provide a free assessment to consumers, advisors or their clients who are considering bankruptcy.

We can provide full advice and assistance to enable your voluntary bankruptcy. We will not be your trustee but can assist in finding a suitable trustee. (Most people >90% will have AFSA as their trustee).

BankruptcyByPhone.com.au is Fixdebt.com.au Pty Ltd, ABN 82 123 819 590. Registered Office 903/50 Clarence Street, Sydney 2000.

Serving all of Australia.

Reviews on this site are from bankruptcy clients served by Fixdebt.com.au Pty Ltd and its powered websites and/or clients of Fix Debt (Solutions).

Phone contacts

Main 1300 163 017

Keith Dorahy (direct) 0421 866 422

Debt Agreement Services are provided by AFSA (Australian Financial Security Authority) www.afsa.gov.au, registered Debt Agreement Administrator, Keith Dorahy – Licence 1149.

Complaints Mechanism – To lodge a complaint ask us for a complaints brochure or request a complaints brochure from email complaint@idmail.com.au. If an issue has not been resolved to your satisfaction, you can lodge a complaint with the Australian Financial Complaints Authority (AFCA). AFCA provides fair and independent financial services complaint resolution that is free to consumers. Website: www.afca.org.au – Telephone: 1800 931 678 (free call) – Email: info@afca.org.au, In writing to: Australian Financial Complaints Authority, GPO Box 3, Melbourne VIC 3001

Compliments Mechanism – Forward all compliments to compliments@idmail.com.au