Helping Companies prepare for Liquidation

Helping Companies prepare for Liquidation

If your Company is about to enter into liquidation, Bankruptcy Solutions will deliver independent assistance developed to work in the best interests of those involved.

The Company’s balance sheet will be examined to gain a full understanding of the situation. Then with input from the Director/s, the most appropriate action in order to maximise returns for Creditors and Shareholders will be implemented.

Our extensive experience in assisting Companies to prepare for Liquidation means we are able to navigate you through the process.

Call Bankruptcy Solutions today on 1300 339 604 for assistance.

If you are a Sole Trader or Partnership, please visit our Personal Bankruptcy pages.

Helping Directors through the Liquidation process

Helping Directors through the Liquidation process

Though the Company may be in liquidation, that does not indicate your interests are being looked after. The responsibility of a Liquidator is to look after Creditors – not Directors. Bankruptcy Solutions can help! We offer independent recommendations to safeguard your interests, your individual assets and your lifestyle. You and your family shouldn’t need to lose everything you’ve worked so hard to attain just because the Company is financial difficulty.

Call Bankruptcy Solutions on 1300 339 604 to discuss how we can help.

If you are a Sole Trader or Partnership, please visit our Personal Bankruptcy pages.

Reforming a Company to relieve debt

Reforming a Company to relieve debt

There are times when Companies experience a significant event which triggers overwhelming debt. Continuing operations might seem difficult – Company restructuring can offer the solution you are searching for.

This is where Bankruptcy Solutions can assist. We’ll look carefully at your company to examine all available options. In many circumstances, restructuring will offer reprieve from debt and strengthen operational feasibility. Bankruptcy Solutions will guide you through the entire process.

If your Company is in financial stress, we can help. Call us now on 130 339 604.

If you are a Sole Trader or Partnership, please visit our Personal Bankruptcy pages.

Bush Fire Emergency – Financial Help

Bush Fire Emergency – Financial Help

To help those that may be affected by the bush fire crisis, we are sharing the below resources for financial support. Please share this with anyone you know that may have been affected or have family/friends that may have been affected.

Disaster Recovery Payment

Dep of Human Services

$1,000 per eligible adult
$400 per eligible child

Serious injury, Family member of fatal incident, home is destroyed or uninhabitable

Phone: 1802266
Website

Disaster Recovery Allowance

Dep of Human Services

Equivalent to Newstart or Youth Allowance benefit
Subject to income thresholds

Lost income due to bushfires

Phone: 1802266
Website

Red Cross Disaster Relief

Red Cross

$5,000 grant

Home has been destroyed or is uninhabitable

Website

Salvation Army bushfire disaster support

Phone: 1300 662 217
Email

Primary Producer Assistance

NSW Rural Assistance Authority

Recovery grants of up to $15,000
Concessional loans
Transport subsidies, Impacted by bushfires in specific Local Govt Areas

Phone: 1800 678 593
Website

Sporting Club Assistance

NSW Rural Assistance Authority

Concessional loans

Impacted by bushfires in specific Local Govt Areas

Phone: 1800 678 593
Website

Church and non-profit organisation assistance

NSW Rural Assistance Authority

Recovery grants of up to $15,000

Impacted by bushfires in specific Local Govt Areas

Phone: 1800 678 593
Website

Commonwealth Bank
– Accommodation assistance for insurance customers

– Expediting claims for insurance customers
– Assistance for home loan, credit card and personal loan customers
– Credit limit increases (subject to credit approval)

– Loan restructuring
– Waiving prepayment charges for customers accessing term deposits and investment bonds before maturity date
– Waiving of selected fees and charges

* Check with the institution

Phone: 1300 720 814
Website

Westpac

– Grants of up to $2,000 for temporary accommodation, food and clothing

– Possible deferral of home loan repayments for up to 3 months

– Emergency funds and temporary accommodation for insurance customers

– Possible deferral of credit card repayments for up to 90 days
– Personal loans at discounted rates and no establishment fees for replacement goods (subject to loan approval)
– Waiver of interest rate adjustments for customers withdrawing term deposits
– Customers experiencing severe hardship may be offered a halt on interest accrual on credit products for up to 3 months

*Check with the institution

Phone: 1800 029 749
Website

ANZ

– Ability to suspend repayments on loans and credit cards for up to 3 months
– Temporary interest rate relief on lending for customers experiencing extreme financial distress
– Access to term deposits early without incurring any fees
– Emergency funds and temporary accommodation for insurance customers

*Check with the institution

Phone: 1800 701 599
Website

NAB

– $2,000 grant for customers who’s home is no longer in a liveable condition
– Credit card and personal loan relief where appropriate
– Suspension of home and personal loan repayments
– Waiving costs and charges for early withdrawal of term deposits
– waiving home loan and personal loan application fees
– Support to restructure other existing banking facilities
*Check with the institution

Phone: 1300 683 106
Website

AMP

– Waiving of certain fees for customers requiring urgent access to their funds
– Temporarily postponing home loan payments
– Early access to your super if the ATO have assessed you as being eligible on compassionate grounds
– Faster access to pension fund payments
– A one-off 3 month waiver of Life, Total and Permanent Disability, Trauma, Income Protection and Business Insurance Premiums

*Check with the institution

Phone: 13 30 30 (Banking)
131 267 (Insurance and Superannuation)
Website

General Financial help

Free financial help is available through the National Debt Helpline on 1800 007 007

Insolvency-specific help

Alongside these organisations we are offering free services to our affected clients. We are also offering free consultations in order to provide information, direction to appropriate professionals and direction to financial councillors, to all affected. These options may include; hardship applications, negotiations, part nine debt agreements, informal debt agreements, personal insolvency agreements and bankruptcy.

Debt Solution Options

Debt Solution Options

The most important job we have at Bankruptcy Solutions is to help you understand all the options you have to get your finances in control. There are many things you can try prior to engaging what is called a ‘formal option’. We will address these first:​

Debt consolidation
If you are still financially sound, debt consolidation may be a good option for you. It is a way of combining your debts from multiple lenders into a single loan, and most often with a lower interest rate. This can be much easier for people to manage then multiple debts.​

Budgeting assistance
Controlling your spending is easy to do if you have a budget and stick to it. Budgeting and responsible spending and saving habits are the best way to ensure you stay debt-free over the long term. Regardless of whichever option you take, these skills are vital to ensure a long term healthy relationship with money. ​

Informal arrangement
An informal arrangement between you and your creditors may give you more time to pay your debts if you are facing short term financial difficulty. This can commonly be known as a hardship application. Many people try and openly communicate with their creditors about their situation and may be able to negotiate an offer.

However, it is not always easy to have all your creditors agreeing to your offer. It is also not legally binding on all creditors. There are many more options if you have not been successful with this method.​

Mortgage refinance
Do you have a home loan and equity in your property? If so, you can refinance your home loan to repay other high-interest debts.

Formal Options

If the above options were not helpful and you have sought a financial advice, accounting advice or something similar to no avail, then a formal option may be the right option for you. When we use the term ‘formal options’ we are referring to the following three solutions;

1. A Debt Agreement

2. A Personal Insolvency Agreement

or

3. Personal Bankruptcy

We will break these down into a brief description of each below, however, it can still be overwhelming or confusing to know exactly which option would be best for your circumstances. Please know that we offer a FREE over the phone consultation to help you understand the options and choose the best path to go down. Please contact us through any of our website links to speak to one of our experts.

Bankruptcy

Bankruptcy is a legal process where you’re declared unable to pay your debts. It can release you from most debts, provide relief and allow you to make a fresh start.

You can enter into voluntary bankruptcy. We refer to this as a debtor’s petition. It’s also possible that someone you owe money to (a creditor) can make you bankrupt through a court process. We refer to this as a creditor’s petition.

Bankruptcy normally lasts for 3 years and 1 day.

When you are bankrupt:

you must provide details of your debts, income and assets to your trustee.

your trustee notifies your creditors that you’re bankrupt – this prevents most creditors from contacting you about your debt.

your trustee can sell certain assets to help pay your debts.

you may need to make compulsory payments if your income exceeds a set amount.

If you believe that this may be a possible solution for you, please contact us for a one-on-one consultation where our experts will guide you.

Click Here for more information regarding Bankruptcy

Debt agreement

A debt agreement is one of two agreement options available. A debt agreement, also known as a Part IX (9), is a legally binding agreement between you and your creditors.

A debt agreement can be a flexible way to come to an arrangement to settle debts without becoming bankrupt.

You negotiate to pay a percentage of your combined debt that you can afford over a period of time.

You make repayments to your debt agreement administrator, rather than individual payments to your creditors.

After you complete the payments and the agreement ends, your creditors can’t recover the rest of the money you owe.

Personal insolvency agreement

A personal insolvency agreement (PIA) is one of two agreement options available. A PIA, also known as a Part X (10), is a legally binding agreement between you and your creditors.

PIA’s can be a flexible way to come to an arrangement to settle debts without becoming bankrupt.

A personal insolvency agreement involves:

The appointment of a trustee to take control of your property and make an offer to your creditors.

The offer may be to pay part or all of your debts by instalments or a lump sum.

Other important information you need to know includes:

There are no debt, asset or income limits to be eligible for a PIA.

The length of your PIA will depend on what you negotiate with your trustee and creditors.

You may retain your assets (such as house or car) if the terms of the agreement allow.

Fees apply to process, propose and manage the agreement. You must speak to a trustee about the fees they may charge.

You may not be released from all debts

Please feel free to use our evaluation tool to qualify for a no-cost or obligation consultation

How I went from $90,000 in debt to $10k of savings in 1 year

How I went from $90,000 in debt to $10k of savings in 1 year

“So, to put my story into context, I need to tell you;

This is not a heroic budgeting, frugal living type blog post, it’s just exactly as the title reads. This is the exact way I achieved this. Legally, quickly and happily.

Alright, I’ll start from the beginning. How I accumulated all the debt in the first place.

It started when I was 18. I got a letter from my bank about a low limit credit card, sounded harmless enough. I had this plan that I would just instantly transfer all the money over that I used, and it started out great.

After proving my responsibility to myself, I decided to take out a personal loan for a procedure that I wanted done. It was a 10k loan, good repayments, and I thought I could manage it, as I was hardly using the credit card at all. So I went ahead with the loan. Then I got another letter for a platinum credit card with an AMEX, so again I said yes.

After using the Amex for ‘points’ for various purchases over a few years, I was left with 20k of debt. Due to illness, I had to stop working, so I took out another credit card, and ended up maxing that out too. I was up to about 30k in debt. When I returned to work, I was chipping away at the repayments, that’s when my car broke down. I had a friend who was a cars salesperson who said he could get me a great deal! A $30,000 loan later, there I was with a $60,000 debt – not sure where to even begin because I had completely lost track of where the debt was coming from! Just when I thought things couldn’t get worse, I received an ATO debt of $10,000 from back when I was a sole trader!

As a result, I found myself with crippling anxiety and depression and was forced to leave my job. I would literally get calls every single hour of the day, demand notices, you name it. In the time that I had accumulated the debt, interest piled up, late fees piled up, and I found myself in $88,000k of debt. I was 22. I thought my life was over, because it would take about 70 years to pay off (at the minimum repayments).

I couldn’t afford Rent, food, petrol. Nothing.

I was trying to get on with my life, and I knew I needed to do something drastic.

I took to google to find out my options. Bankruptcy Solutions Australia came up, I clicked, inquired and within 15 minutes my consultant ‘Tanika’ had called me and explained to me in full detail the pro’s and con’s of bankruptcy and had taken me through a full consult to determine if bankruptcy was a right fit for me.

It took about 2 weeks to get everything organised. Then the letter from the government came saying I was bankrupt. I have to say opening that letter was extremely daunting. Until I opened my bank account… instead of a negative of 10’s of thousand’s there was just my little savings of $10 (I told you I was broke). Can you imagine opening your bank account of -$88,000+ every single day and then one day having a positive figure appear over night? Well to put it into perspective, I cried for 20 minutes.

The whole experience up to that point had motivated me to be so much better with my money. I decided to take an online course on how to budget. I put all of my new budgeting skills into action, and to this day I have not stressed about rego, insurance and any other sneaky bills that pops up.

I really didn’t even notice that I was bankrupt most of the time. I couldn’t take out a car loan until the three years was up, but I didn’t want to after feeling freedom from debt. So, I saved and bought a really cheap car which got me by until I was on my feet again.

At the end of the first year of my bankruptcy, I had saved 10k. This was surprisingly easy to do without having every hard earned cent going back to debts!

Now, three years on, My Husband and I have applied for a home loan and I can’t believe it – WE GOT IT! I emailed Tanika the second we were approved to say a massive Thank You because without Bankruptcy Solutions Australia, this would have never of happened.

Tanika asked me to share this story in the hopes that it might help someone else. It was the best decision I could have ever made. Bankruptcy as a word is much scarier than the actual process. Don’t let debt ruin your life.

*Last name of client has not been added to protect her privacy

If you would like more information please do not hesitate to contact us here:

contact us