JANUARY 6TH 2013 OPTIMISM

Curate a positive outlook. this is my years resolution. If you need to talk, speak up. you are not alone

MARCH 2012

Time moves slowly when you have the restrictions of bankruptcy.

keep your head high.
keep saving.
keep your sense of humour.
The world is changing and the Australian Government is changing.

New bankruptcy laws will be upgraded shortly.

If you are contemplating bankruptcy,
please look at all other avenues first.
FIRST-- go to a financial planner.
your situation may seem hopeless to you, but planners can get
you a settlement or an arrangement. with your debtors.

WHEN IN DOUBT SEEK PROFESSIONAL HELP;

JUNE NEWSLETTER

TAX TIME--
Gather all your group certificates.
If you have changed address in the year, it would be advantageous to ring our past and current employer's with the correct address so your group certificate is sent without delay.

Make an appointment with your accountant or taxation agent.

Don't delay.
Have all your invoices and expenses in order of date.
The more organized you are the quicker you claim can be lodged.
It may cost you less and return you more.

MAY NEWSLETTER

If you are unable to pay your debts and cannot come to suitable repayment arrangements with your creditors, you may voluntarily petition to become bankrupt. At the time of petitioning, you must be present in Australia or otherwise have an Australian connection (eg you ordinarily live in Australia or are involved with a business operating in Australia).

Creditors can also apply to the court to make you bankrupt if they can satisfy the court that you owe them money above a minimum amount.

What happens when I become bankrupt?

Bankruptcy generally lasts for a period of three years but can be extended in certain circumstances. There is a permanent record of your bankruptcy on the National Personal Insolvency Index (an electronic public register which can be accessed by anyone for a fee).

Your creditors are notified of your bankruptcy and unsecured creditors should stop pursuing you for payment of your debts.

A trustee will be appointed to your case. In order to pay your creditors, this trustee will:
sell your assets (although you will be able to keep certain types of assets)
mandate contributions from your income once you earn over a certain amount
investigate your financial affairs and may recover property or money that you have transferred to someone else for inadequate consideration

The duties of a trustee are specified in legislation and trustees have to adhere to certain standards while administering your estate. You can choose to appoint a registered trustee by obtaining and providing their consent when you lodge your petition to become bankrupt. If you do not choose a trustee, the Official Trustee (ITSA) is initially appointed to administer your estate. Your creditors may choose to change the trustee at any time.


Becoming bankrupt
.
If you are choosing to become bankrupt voluntarily, you must complete a Debtor’s Petition form. (If a creditor has successfully petitioned a Court to make you bankrupt, this is not required.)
You must complete a Statement of Affairs that truthfully discloses all relevant details of your current financial position. This includes all debts, as well as your current and recently owned asset.



Obligations during the period of your bankruptcy
.
Change of name or address
You are required to notify your trustee of all changes of name and/or address.

Overseas travel
If you wish to travel overseas you must obtain the written permission of the trustee administering your estate who may impose conditions of travel. You may have to surrender your passport to your trustee.

Change in income during bankruptcy
You must notify your trustee of any change in your income especially if your new income is close to certain income threshold limits.

Changes in assets during bankruptcy
You must notify your trustee if you inherit any property, win money or otherwise receive any assets while you are bankrupt.

Cooperating with your trustee
You must cooperate with your trustee and provide information when requested. You may also be asked to attend meetings, or answer questions at an examination under oath. If you fail to cooperate with your trustee, your period of bankruptcy can be extended under certain circumstances.

If your bankruptcy is being managed by the Official Trustee (ie ITSA), you can access forms for change of address and overseas travel requests online.

If your case has been assigned to a Registered Trustee, you need to contact them directly when your circumstances change.


Restrictions on your conduct during the period of your bankruptcy
.
Borrowing money
When you are borrowing money, purchasing goods on credit or incurring credit in any way over a set limit, you must inform the person you are dealing with that you are an undischarged bankrupt.

Managing a corporation
You cannot be a director of a company or be involved in its management without the permission of the Court.

Conducting a business
You may be able to continue to operate a business while bankrupt. However, if you trade under an assumed name or (whether alone or in partnership) a firm name, you must disclose that you are a bankrupt to everyone that you (or the partnership) deal with.

Statutory positions
You may be prevented from holding certain statutory positions.

Restricted trades and professions
While generally bankruptcy does not prevent you from earning a living, you may not be able to remain employed in particular trades and professions.

Court actions
You may be prevented from continuing any court action that you have started.


Failure to comply with the above obligations and restrictions can lead to fines or a criminal prosecution, and potentially imprisonment.

APRIL NEWSLETTER

Now you are bankrupt: You may very well feel you are drowning.

Creditors will have rights to enforce your assets to be distributed, once they prove debts are owed to them.


ENFORCEMENT OF DEBTS- Unsecured Creditors
The effect of bankruptcy is to convert a creditor's right to recover the debt directly from the debtor to a right to lodge a claim with the trustee, called a proof of debt, and to share in any distribution of available property or income. Unsecured creditors are entitled to vote at any meeting of creditors.

After bankruptcy unsecured creditors cannot enforce a remedy against the bankrupt or property of the bankrupt. They are also prohibited from commencing legal proceedings or taking fresh steps in any proceedings except with the permission of the court. Legal actions such as the issue of a summons and most garnishees must be stopped by the creditor. Some garnishees relating to Commonwealth debts can remain in force.
Where a creditor on sells their debt to another agency, they should inform the purchasing agency of the bankruptcy to avoid the acquiring agency incurring an expense in attempts to recover, only to discover the bankruptcy. It will also assist with the administration of the bankruptcy and provide the purchasing agency with an opportunity to lodge a claim in the bankruptcy where no proof of debt has been lodged by the originating creditor and at the same time obtain the necessary authority to prove to the trustee that they are now the creditor by subrogation in the event of a dividend.


ENFORCEMENT OF DEBTS - Secured Creditors

A bankruptcy does not affect the rights of a secured creditor to deal with its security.
Creditors who hold valid security over assets or property of a bankrupt are, within the terms of their security, entitled to sell the assets in order to recover the amounts owing. Fully secured creditors are not entitled to participate in a dividend or vote at a meeting of creditors.
A creditor who holds security over property belonging to other parties is not a secured creditor within the context of the bankruptcy law. They have rights in the estate as an unsecured creditor and rights pursuant to the terms of the security to deal with the other person’s property. This is a complex area of law and more information can be obtained from the trustee or a solicitor.

Creditors holding security of less value than their debt have a part of their debt which is considered as unsecured. They can deal with their security and are also able to claim in the bankruptcy for any losses that arise or are expected to arise from the sale of the security. They are entitled to vote at any creditors meetings for the loss or expected loss.
Secured creditors who sell secured property must forward an accounting of the sale to the trustee.
A bankrupt may make arrangements with secured creditors to make payments in respect of a secured debt in order to retain the use of the property. However the property may vest with the trustee who is entitled to sell it and collect any surplus on sale.

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CLICK ONLINE BOOK TO PURCHASE MY BOOK

USE FACEBOOK TO SEARCH FOR INFORMATION ON BANKRUPTCY.

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USE GUMTREE TO PURCHASE MY BOOK.

MARCH NEWSLETTER

MORTGAGE INSURANCE.
In the future lenders will be more savvy about mortgage insurance.
Bankruptcy regulators and the Insolvency and Trustee Services Australian(ITSA) are sensing a change.
ITSA is now trying to identify how it can report on the number of people who elect bankruptcy because of natural disasters.
Bankruptcy applicants face a 20 page application to explain how it all went wrong.-
-Please explain your
-unemployment.
-loss of income.
-extravagant living.
-excessive use of credit cards.
-high interest rates.
-gambling debt---------Just to name a few.

Queensland has a higher rate of bankrupts than must other states in Australia, prior to the natural disasters in 2010-2011.
December Queensland had business related bankruptcies up by 479 cases.
NSW up 394, Victoria up 185, WA 100..
Now business related bankruptcies are
Queensland 1196, NSW 1602, Victoria 905, WA 286--

Queensland contributes the high bankrupts with cost of living increases in real estate, electricity, water and vehicle costs.
Other states have similar reasons.

New bankruptcy laws in December 2010 may help stave off personal bankruptcy but don't go far enough.

IN 2007
Eastern Access Community Health outlined how easy it was for debtors to be forced into bankruptcy, this prompted the government into action the report found in 2005, 22953 debtors became bankrupts.
In 2008
20% of bankruptcies related to debts between $2000 & $10,000

Advise -talk to your financial counsellor sooner rather than later.
Disaster can happen in an instant.

MARCH NEWSLETTER

Australia is just getting on with the flood clean up.

Then Christchurch is hit.

Now Japan.

Life and mother nature are in conflict.
Take a warning.
This is the beginning of a new wave of destructive forces.

Please all say a prayer for the victims and families.

A moment silence is renewing.

FEBRUARY NEWSLETTER

VICTIMS OF DISASTERS- FLOOD-FIRE.

Flood and Fire victims with hefty mortgage debts and inadequate insurance are being told by some financial advisers to declare bankruptcy. Other financial counsellors say it could land them in more trouble, walking out on the mortgage and then trying to find a rental property could see you go from the frying pan into the fire.

Bankruptcy in the majority of cases after natural disaster is generally not the answer.
It's better to negotiate with your lender to reduce payments over a longer period giving you breathing space.

Other pitfalls of inadequate insurance cover.
owners will have breached the home loan contracts and will find there home could be repossessed. Home loans require adequate insurance.For those who cannot withhold the strain bankruptcy may be a relief in the short term.

If you think the floods and Fires are not your concern--think again.
Rising groceries, petrol, school fee, medical bills, utility costs rising, insurance rising all far greater than inflation we may all have to recalculate over spending.

Advise at this moment. re evaluate your insurances immediately.
Whether it be home, contents, car, income.

JANUARY NEWSLETTER

I would like to start this month with a moments silence for lives lost and for the people still missing in our devastating floods in Queensland Australia. Our thoughts and prayers are with the families.


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We wish all those effected a speedy recovery.

YOU CAN DONATE TO HELP FLOOD VICTIMS.

PREMIERS FLOOD RELIEF:

www.qld.gov.au/floods

December Newsletter

CREDIT CARD-- OR FOR MANY-- CREDIT CARDS.

NOW get the scissors and cut then up.
NOW is the time to do it.
NOW don't think about it just cut

NOW is the time to start for your 2011 budget to begin.

NOW don't procrastinate, do it.

November News

Bankruptcy is still in the headlines.

With interest rates steadily rising, we all need to be cautious.
Whether you are buying a house or renting, costs are rising.
Christmas is around the corner. DON'T overspend.
Keep to your budget.
Remember to allow for school fees in February.
If you are in a wet weather job, income my change if its raining.
Council rates are usually in January.

CHECK YOUR CREDIT HISTORY

Once again on the news this week people are being caught out with credit history mistakes.
I have to say it many times.
Every 6 months go to Veda Advantage or Dun & Bradstreet and get your credit rating.
and /or check it out before you go for a loan of any sort.

If you find something on your credit file you are unaware of or don't know anything about. You can request more information from the credit provider.
ASK: They can look into it for you and possibly fix the situation.
Unfortunately in many cases you get no further and have no choice but to wait the time period out. This can be 7 years.
There must be some way to prove a mistake.
If you have been able to succeed please inform me.
In my case ( I had a bill from a phone company I never new about, I was not notified I owed the bill and the first I new it was on my credit file so I know how you feel) the credit provider did place a finalized note, however it was still on my credit file.
Yes I had to wait for the time to clear the credit file.

BANKRUPTCY--FEES & CHARGES

PART 3 OF 3.

OTHER FEES AND CHARGES FROM THE ITSA.

Current as of 20Th September 2010

ADMINISTRATION OF BANKRUPT ESTATES. $3200.00 plus 20% of money received plus GST.
Where a bankruptcy administration includes the management of a debtor's business, an additional fee of $50.00 per 15 minutes applies for time spent in managing the business.

COMPOSITION PROPOSALS. Under section 73 of the 20% of value of the Bankruptcy Act.
This fee is addition to the fee for administering the bankruptcy.

DEBT AGREEMENTS.

20% of value of the proposal accepted by creditors.

CONTROLLING TRUSTEE AUTHORITIES. Given under section 188 of the Bankruptcy
Act. $50.00 per 15 minutes or part thereof.

PERSONAL INSOLVENCY AGREEMENTS. 20% of the value of the proposal accepted by creditors.

PRE-BANKRUPTCY CONTROL ORDERS. Under section 50 of the Bankruptcy Act. $50.00 per 15 minutes or part thereof.

PROPERTY UNDER PROCEEDS OF CRIME LEGISLATION. $50.00 per 15 minutes of part thereof.

SPECIAL ADMINISTRATIONS- not governed by the Bankruptcy Act or Proceeds of Crime legislation.- fee as per agreement.

NOTE: Some fees vary according to money received.

PROCESSING A DEBTOR'S PETITION. No FEE.

BANKRUPTCY--FEES & CHARGES

PART 2 OF 3.

OTHER FEES AND CHARGES FROM THE ITSA.

Current as of 20Th September 2010

Trustee and Administrator registration and Renewals. $2000.00
-Application to be registered as a trustee or debt agreement administrator $1200.00.
-Initial registration or Renewal of registration ( every 3 years) $1600.00

Realisations Charges- This is a levy to fund the cost of conducting enquiries in certain bankruptcies, investigating alleged offences, monitoring and regulation of trustees and administrators and providing information to a range of clients. 4% of the money received by trustees in bankruptcies, debt agreements, compositions and personal insolvency agreements.

Interest Charge- The interest earned on funds held by registered trustees and administrators is also used to fund the cost of conducting enquiries in certain bankruptcies, investigating alleged offences, monitoring and regulating trustees and administrators and providing information to a range of clients.
-The interest earned net of bank charges.

BANKRUPTCY--FEES & CHARGES

PART 1 OF 3.

OTHER FEES AND CHARGES FROM THE ITSA:

Current as of 20Th September 2010.

Service of public documents. $40.00

Bankruptcy Notices issued at a creditor's request. $440.00

Personal Insolvency Agreements $200.00

Official Receiver Notices issued at a trustee's request. $450.00 (excluding disbursements.)

Taxation Services.
-Taxation of a bill of costs in relation to a administration of an estate.
-Taxation of a trustee's remuneration in an estate.
Are $50.00 per 15 minutes or part thereof.

BANKRUPTCY THRESHOLD-LIMITS

CURRENT AS OF 20TH SEPTEMBER 2010.

PART 3 OF 3

A person who attends before the Official Receiver or authorised officer to give evidence or information is entitled to $21.00.

Where a person is required to attend before the Official Receiver the Official Receiver must offer the following advances on allowances and reimbursement of expenses before a person begins travelling by aircraft or private motor vehicle is $21.00 other transport $10.00.

UNSECURED DEBTS AND ASSETS:

A person cannot propose a Debt Agreement if their unsecured debts and/or divisible property are more than $90,326.60.

A person cannot propose a Debt Agreement if their after tax income for the year is more than $67,744.95.

Registered Trustee Minimum Fee Entitlement is $1593. Trustees are paid for administering a bankruptcy. They may recover this minimum fee if they do not receive enough from the sale of the bankrupt;s assets or income contributions.

Extent of Priority for Employee Amounts. is $4000.
If an employee is owed money by a bankrupt, they are entitled to receive payment of any dividends issued in preference to those issued to other unsecured creditors.

BANKRUPTCY THRESHOLD-LIMITS

CURRENT AS OF 20TH SEPTEMBER 2010.

PART 2 OF 3.

BASE INCOME THRESHOLD:
No dependants $45,163.30.

ACTUAL INCOME THRESHOLD:
With dependants.
1 dependants $53,292.69
2 dependents $57,357.39
3 dependents $59,615.56
4 dependents $60,518.82
over 4 dependents $61,422.09
A dependent is allowed to earn an income up to $3049.00 during the contribution assessment period. they will still be considered a dependant for the purpose of calculation a bankrupt's income contribution liability.

$5000.00 is the minimum judgement amount upon which a bankruptcy notice can be based.
The minimum judgement amount is set by the Bankruptcy Act and is not indexed.

BANKRUPTCY THRESHOLD-LIMITS

PART 1 OF 3.

CURRENT LIMITS APPLY FROM 20TH SEPTEMBER 2010.

TOOLS: A bankrupt may keep tools used to earn an income. UP TO $3400.00

VEHICLES: A bankrupt may keep vehicles ( cars or motorbikes) used mainly for transport. UP TO $6850.00

BUYING GOODS AND SERVICES: A bankrupt must disclose when applying for Credit or Cheque goods and services. ABOVE THE LIMIT OF $4835.00.
A trustee may lodge an objection if a bankrupt obtains credit over this limit without disclosing their bankruptcy.
WARNING: It is a criminal offence for a bankrupt to obtain or attempt to obtain credit in certain circumstances.
Severe penalties apply to these offences.
-longer term placed on bankruptcy.
-charged a large fine.
-imprisonment.

MANAGING MONEY AFTER BANKRUPTCY

CHECK YOUR CREDIT HISTORY:

This is very important step in regaining your life.
You must know if you have a clean credit history.

After five years you will be able to ask banks etc for a home loan.
Provided you have saved the appropriate deposit and your credit is clean of any debt even the very small amount will stop you from gaining a loan.
You should be able to get a small loan for a car for example.

HOWEVER: you will always have bankrupt on your history.
Keep asking life gets better.