Business, Tax and Trustee
What happens if I am a Sole Trader?
Bankruptcy doesn’t prevent you operating as a Sole Trader. You are required to trade under your own name.
Consideration must also be taken as to what assets your business has. Tools of trade can be kept up to a value of $3,800.00.
I am a company director
You cannot remain a Director (except with the permission of a court) whilst you are bankrupt. ASIC, the Australian Securites and Investment commission oversee this.
If you are required to resign directorship we will do this for you.
I personally guaranteed business debt/s
Personally guaranteed debts are extinguished in bankruptcy. This includes shortfalls after repossession.
I owe the tax office money
Debts, interest and penalties owed to the tax office are extinguished in bankruptcy.
I have outstanding tax returns
You can go bankrupt whilst you have oustanding tax returns. This doesn’t mean you are exempt from lodging those returns but anything you owe the tax office up to the date of your bankruptcy is extinguished, whether you know the exact amount or not.
I am going to get a tax refund
Any tax refunds that should have been filed up to the date of your bankruptcy will vest with your Trustee. Any refunds you receive for periods due to be filed after your bankruptcy will remain yours. (Unless you owe the ATO money).
Who will be my Trustee
AFSA (Australian Financial Security Authority) will be the trustee for most people. Private Trustee’s are registered with AFSA to administer bankrupt estates where there are significant assets or income.
Can I have a Private Trustee
If you require a private trustee we would certainly advise you and be able to recommend one that would work out for your situation.
Can you arrange a "Friendly Trustee"
There is no such thing as a “friendly Trustee”. All Trustee’s are in place to uphold the law and do what is best for the creditor’s. What we can do is advise you on what will occur if you will need to have dealings with either the Public or a Private Trustee.
What ever your worries, give us a call, we are here to help.
We can answer any of your questions. If bankruptcy is best for you and you want someone to be with you all the way through contact us today.