Directors and individuals alike can face significant stress and loss of confidence when it comes to personal bankruptcy.
This may be due to facing personal insolvency issues such as:
- Personal liability for business debts under a personal guarantee, such as cash flow loans;
- Receipt of a Director’s Penalty Notice (DPN) from the Australian Tax Office (ATO) that has expired after 21 days of issuance
- Unpaid and unreported GST, PAYG & Superannuation Guarantee Charge (SGC) that was not reported within the required timeframes
- Personal claims made by the Liquidator against the director(s) such as insolvent trading or for director related voidable transactions.
Why should you first seek the advice of Corsonn Fiske?
Entering into bankruptcy in an organised and controlled manner will bring finality to these personal liabilities.
However, preparing for bankruptcy is important and consideration needs to be given to what is at risk such as personal assets, such as the director’s equity in the family home or motor vehicles.
How can you minimise risk in Personal Bankruptcy ?
When it comes to dealing with your assets these can be sold for a fair market value and therefore protected from claims by a Bankruptcy Trustee and provide a direct return for creditor claims when you enter into liquidation.
What could bankruptcy look like for you?
Most individuals have concerns about personal bankruptcy and what it looks like in the future. As an overview here is some key information for consideration you otherwise may not be aware of:
- Bankruptcy is for a term of 3 years, as long as you meet your obligations once a trustee in bankruptcy is appointed
- You can retain the family home in most circumstances subject to conditions
- A bankrupt can retain a motor vehicle with equity up to $9000 even if this is the equity portion not subject to finance
- Whilst you will be listed on the National Personal Insolvency Index as being bankrupt, it costs money for others to access this information and remains not in the public forum.
- Income is not limited and you can earn your normal salary however you may be subject to income contributions with the bankruptcy trustee should your income exceed indexed limits.
Why Corson Fiske for Personal Insolvency and Bankruptcy
Corson Fiske have specialist expertise in dealing with personal insolvency matters and we understand that this can be a stressful process. When you engage Corson Fiske we undertake a comprehensive investigation to understand your personal debt position and to formulate a strategic plan that minimises risk but also compliantly deals with your creditors.
Reach out to our personal insolvency team today.