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Federal Budget 2018 - Overview
Your Budget
4 components of our 2018 Federal Budget
Resources to help understand and implement Single Touch Payroll (STP)
New rules capture SMSFs trading big with cryptocurrency
New passive income test for lower corporate tax rate
Tools to help you manage your financial position are available on our site.
‘A simple mistake can attract our attention’: ATO reminder about FBT slips-ups
Australia by numbers – Update
Beware residency rules if moving overseas
Meaningful tax reform in high demand
Working holidaymakers and tax returns
Single Touch Payroll – 1 April 2018 Action
Property investors on notice after ATO spots false claims
ATO issues update on cryptocurrency compliance traps
Australia's vital statistics
Accountants spy elder abuse spike as mortgage stress sets in
Tax office releases fresh guidance on SMSFs
Labor's tax plans could favour the rich, analysis shows
FBT Reminder – Odometer Reading
Our website is really our digital office.
‘Substantiation will be a key focus’: ATO drums in tax time 2018 hit list
Super changes: $1.6 million transfer balance cap and death benefit pensions
Payroll, compliance issues top dodgy practices in Aussie business
Employee travel expense deductions
The Goldilocks effect - Economic and market update 4Q 17
Tax assessments confirmed for undisclosed business income
Super returns on the up despite clients’ hesitation
Australia. All you need to know to be the expert.
Business confidence hits 5-month high: NAB
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Quarter 1 of 2015
Articles
ATO states estimates are acceptable
Hockey considers super access for first time home buyers
Reportable Fringe Benefit Amount - Employer Reporting
Simple Mistake on Share Transfer
ATO highlights billions in forgotten super
In a bankruptcy what does a trustee do?
Bankruptcies, what are they?
SMSF trustees unprepared for new collectibles rules
We wish all our clients a Merry Christmas, a Happy New Year and a restful holiday
Employee Christmas Parties and Gifts – Any FBT?
Breaking down the latest ATO determination on TRIS
Bankruptcies, what are they?

 

In each of 2013 and 2014 financial years approximately 20,000 Australians declared themselves bankrupt.



       


A declaration of bankruptcy is one of several options available to persons who may be insolvent and provides a finalisation or moratorium to all of their creditors.  It may be initiated by either the debtor themselves or a creditors petition via the courts.


The affairs of the debtor are transferred to a specialist accountant who then stands in the shoes of the debtor and then acts with all the authority in place of the debtor.


It provides an elimination of all obligations and disposal of most property.  All debts e.g. tax debts, credit cards, telephone accounts, which are unsecured, will be eliminated, whilst secured debts e.g. home loan, business loan will be complicated until enforcement of security determines what equity (if any) exists.


It may also cause problems for anyone who has guaranteed an account e.g. a parent who has guaranteed a phone plan for a minor.


The trustee ends the bankruptcy by making a distribution to creditors to finalise their entitlements.  The debtor is then, after the period of bankruptcy (typically five years) able to start their financial arrangements again.  Obtaining credit and starting a new business will certainly not be as easy with bad credit ratings and financiers reluctant to advance other than a minimum level of credit.  Previously simple tasks e.g. renting, phone and utilities will be challenging.




14th-February-2015