Ways to Deal with Debt for Sole Traders
The first thing to do is to assess your situation and give you advice on how to manage the debt.
Some Options may be to
Some Options may be to
- Asking your creditors (people or businesses you owe money to) to give you more time to pay your debt, or accept a smaller payment to settle the debt.
- Dealing with debt that are available under the Bankruptcy Act 1966. there are four options.
Declaration of intention
You can freeze most of your debts for 21 days by lodging a declaration of intention (DOI).
This gives you some time to consider what you can do to manage your debt, to avoid 'acts of bankruptcy'.
To lodge a DOI, you must meet certain conditions.
This gives you some time to consider what you can do to manage your debt, to avoid 'acts of bankruptcy'.
To lodge a DOI, you must meet certain conditions.
- Your goods can still be repossessed
- Creditors can use it to bankrupt you
- We have not accepted a DOI from you in the last 12 months.
- You are not currently bankrupt (or waiting on a bankruptcy application to be accepted/rejected).
- You are not currently in a debt agreement
- You are not in a personal insolvency agreement and the subject of a controlling trustee or Section 188 authority.
- A creditor has not already applied to the court to make you bankrupt.
- You are present in Australia or have a residential or business connection to Australia.
- There is no minimum or maximum amount of debt you need to be eligible.
Debt agreement
In a debt agreement, you can offer to settle your debts by:
You must also meet certain conditions to be eligible, including having your income, assets and debt under a certain limit.
- paying a lump sum that may be less than the amount you owe
- repaying your debt in instalments
- freezing the debt for a certain time, so you won't need to start repaying it until you get back on your feet.
You must also meet certain conditions to be eligible, including having your income, assets and debt under a certain limit.
Personal insolvency agreement
A personal insolvency agreement lets you pay off your debt in a way that suits your financial situation.
It's like a debt agreement, but your debt, income and assets don't have be under a certain limit.
There's a chance that you'll end up paying more by signing a personal insolvency agreement than by declaring bankruptcy, so make sure you understand the consequences of each before deciding.
It's like a debt agreement, but your debt, income and assets don't have be under a certain limit.
There's a chance that you'll end up paying more by signing a personal insolvency agreement than by declaring bankruptcy, so make sure you understand the consequences of each before deciding.
Bankruptcy
There are two ways to become bankrupt:
Read more about bankruptcy below
- you can volunteer to become bankrupt
- your debtors ( people or businesses you owe money to) can apply for you to be made bankrupt.
Read more about bankruptcy below
Bankruptcy for Sole Traders
If you operate your business as a sole trader, you or your partners can become bankrupt as individuals (the business itself doesn't become bankrupt).
How employees are affected by Bankruptcy
If your business has closed due to liquidation or bankruptcy, there may not be enough funds to pay your employees their entitlements.
Under the Fair Entitlements Guarantee, eligible employees may be able to claim certain unpaid entitlements such as wages, leave, and redundancy pay.
Under the Fair Entitlements Guarantee, eligible employees may be able to claim certain unpaid entitlements such as wages, leave, and redundancy pay.
What Is Bankruptcy?
Bankruptcy is a legal and a great debt solution option for those with debt problems with little or no realistic opportunity to repay those debts.
The government helps people who are in an unmanageable debt move on and start their lives again.
A clean slate and a fresh start.
HOW ?
By clearing your debt/s and starting fresh with debt free life.
It will END the unmanageable debt payments.
It will STOP the harassing phone calls from your creditors or debt collectors.
It will STOP legal action from creditors.
It will STOP stress caused by financial worries.
Declaring bankruptcy can free you from debt and let you get on with your life. Stress Free Once Again.
Need help to clear your debts and start fresh ?
Contact us on 1300 942 856, We open Monday to Saturday till 6 pm.
How much does a Consultation Cost ?
It cost`s absolutely nothing $ 0.00
Our professional staff are available for a free consultation, with no obligation on your part!
How Quick Bankruptcy will change your life
Be Free From Money Worries In Just Days
Entering into Bankruptcy can bring immediate relief to your financial burdens.
Once lodged with the Trustee, bankruptcy applications are usually processed within 48 hours.
Your unsecured creditors, the people you owe money to will no longer be allowed to contact you.
Once lodged with the Trustee, bankruptcy applications are usually processed within 48 hours.
Your unsecured creditors, the people you owe money to will no longer be allowed to contact you.
YOU CAN INSTANTLY BREATHE A SIGH OF RELIEF
And if you want to do travelling
or moving overseas you still can...
However will require approval from your trustee.
We have not yet had a refusal
or moving overseas you still can...
However will require approval from your trustee.
We have not yet had a refusal
What you need to know about Bankruptcy
- Credit Rating is effected for 5 years.
- Bankruptcy is for 3 years and 1 day. You’re then automatically discharged.
- You will be listed in a government file known as the NPII.
- Income, you can keep your income to a certain threshold. Click here for more information.
- Assets, you can keep a car, tools of the trade to a certain value and household & personal items. Click here for more information
- Car under finance is not an issue and for as long as you keep the payments.
- Property like a house, its best to call and will discuss your options.
- Travelling overseas is not a issue, however will require approval from the trustee first. We have not had a client refused to travel overseas.
- Business owner can still continue as a sole trader. However can not be a company director.
How Bankruptcy Helps You
- Legal actions are stopped.
- Garnishee are stopped. *
- Unsecured debts are cleared.
- Secured loans, its your choice to keep paying or give the items back to the creditor. If you no longer have the item please talk to us.
- Creditors can not contact you.
- Debt collectors can not contact you.
- Your employer will not be contacted.
- Your family & friends will not be contacted.
Differences between Insolvency, Bankruptcy and LiquidationInsolvency
Insolvency is a financial status of a person or business in financial trouble, and the inability to pay their debts when they fall due. Bankruptcy
In Australia, bankruptcy is a legal process for an individual (not a company) who is unable to pay their outstanding debts. It can release you from most debts, provide relief and allow you to make a fresh start. Liquidation
Liquidation is the process of winding up a company’s business. Selling its assets, investigating its affairs, recovering any legal claims, and distributing the funds received to creditors and/or shareholders. |
While you are Bankrupt,
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Frequently Asked Questions
It is extremely important to us that you fully understand whether declaring bankruptcy is the right step for you.
We answer most frequently asked questions we receive, please click on Go to Frequently asked questions bottom below... If you can not find the answer to a specific question, please reach out to us, where a consultant will personally answer your question. Remember this is an obligation free services. |
Most Debts are included including Trade Suppliers and Tax Debts. You can operate a business as a Sole Trader however you can not be a company director. Your Car
If you are the owner of the car and have no loan against it and the value of your car is less then $7,900.00, then you can keep it. If you own the car with your partner or somebody else the threshold doubles to $15,800.00 If your car is leased or under finance the value of the car now does not matter as long as you can afford to keep paying for it, however the equity on it can not exceed $ 7,900.00 and if the car is paid off while you are in your bankruptcy period it does not exceed the threshold. Your House
Don’t just assume you will lose your home when you declare bankruptcy. It is possible you could stay. Call 1300 942 856 and speak to one of our friendly consultants who will answer all of your questions about your situation and how bankruptcy may affect it. Travel
You can travel within Australia without any problems. However if you travel outside Australia, you will require permission from the trustee prior to going overseas. To date we have not had and travel application declined. Travelling overseas while bankrupt is possible. Click here for more Information WHO WILL KNOW THAT YOU ARE BANKRUPT ?
Your Employer, Friend and family will not know your bankrupt unless you tell them |
Cost for FREEDOM
Prices are set depending on your circumstance, however prices start from as low as $ 795.00*
There are no hidden fees.
The Benefits of Choosing Us
CONFIDENTIALITYYour telephone call is complete confidential, we do not record telephone calls
The service we provide can be completed over the telephone The consultant you get on the first telephone call will handle the whole process till the end You don`t need to talk to anyone else |
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START YOUR JOURNEY TO FINANCIAL FREEDOM TODAY!
BOOK a COMPLIMENTARY CONSULTATION
Or Call
1300 942 856
OnTrack Debt Solutions
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Our friendly team has years of experience in providing debt solutions.
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