Bankruptcy releases you from having to pay most debts, allowing you to start life afresh, without being ridden by unmanageable debts. There are however certain restrictions that accompany bankruptcy. One of these involve traveling overseas....
Facing unmanageable tax debt? A Personal Insolvency Agreement might be your solution. However, the ATO's vote can be pivotal in such proposals. Generally, the ATO supports arrangements without adverse features and those that ensure the Commonwealth receives a fair proportion of the debt within a reasonable timeframe. They value detailed reports from Trustees and consider a debtor's compliance history. From our experience, the ATO favors proposals from compliant taxpayers and expects more than a nominal return on their debt. Need guidance? Contact Pearce & Heers for expert advice....
Offering the ATO security as part of a payment arrangement can be risky. While it may help negotiate a payment plan, it can also lead to the ATO selling the secured assets if the taxpayer fails to pay the debt. This is especially dangerous for directors who personally guarantee company tax debts, as they become liable if the company defaults. In a recent case, a client's properties were used as security for a company ATO debt, leaving him with no equity and ultimately forcing him into bankruptcy. Seek professional advice before making such decisions....
When a person goes bankrupt, their interest in any real property will become divisible property in their bankrupt estate and “vests” in their bankruptcy trustee. In other words, the rights to deal with the property and effective ownership transfers to their bankruptcy trustee who will have an obligation to sell it. ...
An undischarged bankrupt is generally prohibited from acting as a director of a company without the permission of the court. This restriction is outlined in Section 206B of the Corporations Act 2001 (Cth)....
If you become bankrupt, a bankruptcy trustee is appointed to manage your bankruptcy, which is commonly referred to as administering your bankrupt estate. The role of a bankruptcy trustee includes:...
Some people unfortunately incur unmanageable tax debts. This can be income tax, or perhaps PAYG Tax or GST from a sole trader business or director penalty debt. Once this tax debt reaches a certain level it can be difficult to ever pay given interest and penalties can keep accruing....
In this article, we will first explain what a bankruptcy is, what happens after an individual goes bankrupt, and finally what happens to monies in a bank....
Starting a business after bankruptcy is possible, but with restrictions. While you can't be a company director for three years, you can operate as a sole trader. Your business name must include your own name, and there are limitations on obtaining credit and operating businesses requiring certain licenses. Profits from your business are considered income for bankruptcy purposes, and you may have to pay income contributions if your earnings exceed a certain level. Despite these restrictions, many people successfully rebuild their financial lives through entrepreneurship after bankruptcy. Need guidance? Contact us for assistance....
The ATO has however, started taking recovery action to recover tax debts owed. This has included issuing a large number of director penalty notices and beginning to disclose business tax debts to credit reporting agencies....
Directors of building companies are liable for claims by the QBCC and liquidating the companies will not avoid personal liabilities of the directors. They can either voluntarily declare bankruptcy, or be made bankrupt by the QBCC, but this will not necessarily release them them from all QBCC claims....
If you owe creditors a substantial sum of money and are wondering how they can make you a bankrupt, this article provides an overview of the most common process. ...
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