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In this post, Hamilton Calvert Advisory outlines 5 key indicators you need a bankruptcy advisor in Hobart, TAS. Click here to keep reading!
Need reliable bankruptcy services in Hobart, TAS? Learn about your options and how to recover financially. Call Hamilton Calvert Advisory at (03) 6224 4660!
Learn why early action is crucial to avoid business insolvency. Hamilton Calvert Advisory explains practical steps to identify risks early and protect your business from financial collapse in Hobart TAS.
Do you have a registered security with the Personal Properties Securities Register?
Hamilton Calvert Advisory outlines key facts about director liability during company liquidation. Discover your legal responsibilities and how to minimise risk with professional advice from our Hobart TAS experts.
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What happens to my superannuation if I become bankrupt? As bankruptcy will result in available assets being realised it is important to consider the status of your superannuation balances. Superannuation is not a personal asset and is held on trust for you and governed by superannuation law and for this reason it is not available to your trustee but is also protected by section 116(2)(d) of the Bankruptcy Act 1966 . It is important that you do not withdraw superannuation as a lump sum during bankruptcy as it would become a personal asset and available to your estate. If you entered into pension phase during bankruptcy, then the annual payment would be assessed as part of your income and you may be required to make a contribution to your estate. Can I have a self-managed super fund during bankruptcy? Once you become bankrupt you can no longer be trustee of your own super fund, if you are a director of a company that is trustee of your superfund you can no longer act in that role as a bankrupt cannot be a director of a company. If you have a self-managed superfund you should speak to your financial advisor prior to becoming bankrupt so proper planning can be put in place in order for your superannuation to remain protected. Does bankruptcy affect any life insurance? Section 116(2)(d) of the Bankruptcy Act 1966 provides that policies of life insurance held by the bankrupt and/or their spouse or de facto partner are exempt property where the proceeds of such policies are received on or after the date of bankruptcy and become protected money. This can also extend to property purchased with protected money so it remains unavailable to a bankruptcy trustee to realise. Protection will only be available on or after the date of bankruptcy - not before. If insurance proceeds or superannuation is received before bankruptcy and placed in a bank account or used to purchase real estate it is not afforded the protection of being exempt property and will be available to creditors. Please do not hesitate to contact our firm for a free, initial confidential consultation to discuss your options available.
At the date of bankruptcy all of your divisible property vests in your trustee. Divisible property is all property except excluded items such as tools of trade, principal means of transport (both up to threshold limits) and household furniture. As bankruptcy normally operates for three years and one day section 116(1)(a) of the Bankruptcy Act 1966 deals with property acquired by you after the date of bankruptcy and before your discharge date. Section 116(1)(a) of the Bankruptcy Act 1966 devolves after acquired property in your estate and is therefore payable to the trustee. If your rights to receive property from a deceased estate accrue during this period then the right is claimed by your trustee. Even if the estate was not finalised until after the date of discharge the right to receive the entitlement accrues prior to the date of discharge and therefore forms part of your estate. A bankrupt is required to disclose all property and failure to report a deceased estate may result in: Your bankruptcy being extended up to eight years. Prosecution due to failure to disclose asset. Section 265 of the Bankruptcy Act 1966 provides a penalty of up to one years imprisonment for not disclosing an asset to a trustee. Please do not hesitate to contact our firm for a free, initial confidential consultation to discuss your options available.
1. Who can go bankrupt? Bankruptcy only applies to individuals and not companies. In cases where businesses operate as sole traders or partnerships, only the individual/s can become bankrupt, not the business entity itself. 2. What is bankruptcy? It’s a legal process where a person is declared bankrupt if they are unable to pay their debts due to creditors and a bankruptcy trustee is appointed to manage the individual’s bankruptcy. 3. Can I earn income whilst I’m a bankrupt? There is no limit to the amount of income that you can earn while you are a bankrupt, however, if your after tax income exceeds a set amount, you may have to pay contributions from your income to your trustee. This amount changes with the number of dependents you have. 4. Will I lose my job? Being bankrupt doesn’t normally stop you from working, but there are restrictions to be aware of: · Some trades and professions restrict you from working if you are a bankrupt; and · Whilst you are a bankrupt you can’t be a company director or officer. 5. Can I keep my car? Being a bankrupt doesn’t always stop you from owning a vehicle, however, there are some restrictions. In order to keep your vehicle: 1. The value of the vehicle must be below a set amount; 2. The vehicle is your primary means of transport; and 3. You maintain repayments on your vehicle if it is under finance. 6. Can I keep my house? That depends on a few factors including: How much is owed to the bank; Your financial interest in the house; and The rights of your partner or co-owner 7. How long does bankruptcy normally last? The rule is three years and 1 day, however in some cases early discharge may be available.
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