Alternative arrangements into which a debtor may enter with creditors so as to avoid bankruptcy is possible under the Bankruptcy Act.

A part X arrangement is achieved when:

1. A debtor signs a section 188 authority in favour of a Solicitor or trustee.

2. The property will be controlled by the Trustee of the Solicitor.

3. The Controlling trustee sends the creditors a report on the debtor’s financial affairs.

4. An opinion is created by the trustee whether the creditor’s interests would be better served by accepting the proposal.

5. A Statement about the possible resolution at the Creditors meeting is prepared by the managing trustee.

6. A meeting is called with the creditors at which point a proposal made by the debtor.

7. The proposed arrangement must be approved by special resolution, that is, by majority in number and at least 75% in value of the creditors voting at the meeting.

The options for a creditor under a Part X arrangement are as follows:

1. Deed of assignment whereby a debtor assigns all divisible property for the benefit of the creditors.

2. A composition pursuant to which creditors agree to accept either repayment over time by installments or part payment in full satisfaction.

3. A deed of arrangement which allows a debtor to repay debts, whether in whole or in part and which does not fall under the preceding two categories.

The advantages for a debtor under a Part X arrangement are as follows:

1. Avoid the stigma of bankruptcy.

2. Avoid high costs of court proceedings.

3. Avoid the publicity as court proceedings are in the public domain and can be accessed by any person.

4. Avoiding the limitations imposed on undischarged and discharged bankrupts.

5. With some exceptions acquired property acquired after the part X arrangement is not affected.

6. The Debtor is not required to make contributions from income to creditors.

7. There are limitations on the extent to which financial affairs are examined.

8. Debtor’s exposure to criminal prosecution may be less.

Should you have any questions, call the Insolvency Professionals for an obligation free chat.

A number of options are available to people who are insolvent or can not pay their debts as and when they fall due. One of these options is to enter into a binding arrangement with creditors to satisfy their debts in part or in full.

The Australian Law Reform Commission has concluded in the General Insolvency Inquiry that there is a need in Australia to provide cost effective and efficient ways for people to manage debt problems with creditors. Debt Payment Plans have now been implemented in the new Part IX of the Bankruptcy Act 1966 (Cth).

Eligibility of a part IX Debt Agreement

1. Limited assets and liabilities (less than $54,254.20).

2. Annual after tax income of less than $27,127.10.

How does the Part IX Debt Agreement work

1. A Debtor submits a proposal and Statement of Affairs to the Official Trustee who assesses the eligibility requirements under Part IX.

2. The Insolvency Trustee Service Australia advises the Creditors of the proposal and provides a summary of affairs.

3. Creditors vote on whether to accept or decline the proposal by post or by meeting.

4. Whilst the proposal is being considered, a moratorium applies to creditors against the debtor.

5. The debt agreement becomes effective when the proposal is accepted by a majority and at least 75percent of the dollar value of debt owing to the creditors voting.

6. The agreement remains in force until it ends, is varied or terminated.

If you want to speak to the Insolvency Professionals about entering into a Part IX debt agreement please call 1300 … …

1. A composition or arrangement offer is made to bankrupts through their trustees to finalise their debts. Creditors vote on whether or not to accept such offers.
2. Such offers must benefit a creditor that would not otherwise be available. All creditors will receive an equal rate of dividend.
3. The offer must be in writing and signed and lodged with the trustee.
4. A creditors meeting is called to formally consider the offer.
5. The trustee may require a deposit to cover the expenses and fees of the meeting.
6. At the creditors meeting, the creditors will vote on your offer.
7. A trustee must report to creditors on whether they will benefit if the offer is accepted.
8. The Creditors may accept the offer when a ‘yes’ vote from a majority of voting creditors as long as they represent at least 75% of the claims in dollar value is achieved.
9. Your bankruptcy will be annulled immediately.
10. If your offer is rejected, your bankruptcy will continue.
11. Creditors may vary the composition of arrangement.

For more help and assistance on Section 73 Proposals consult the Insolvency Professionals.

Any company director who is associated with a non trading company needs to consider a no asset company liquidation, as this will help them to clean up loose ends and furthermore limit them from a possible ongoing taxation liability and tax debt.

Insolvency Professionals have made it easy for company directors to begin and complete the no asset liquidation process, if you feel you may be entitled to a no asset low cost liquidation contact Insolvency Professionals on 0448 3333 01now to discuss our low cost liquidation $4950 package.

Our professional comprehensive approach to your financial situation is what makes Insolvency Professionals the number one choice for No Asset Low Cost Liquidations.

So if you are considering voluntary bankruptcy, relax you are not alone. Debts are mounting up, finances way out of control and creditors are making your life a living hell.

How do you keep the Wolves from the door?

Bankruptcy may be the only option for you, but before you act make sure you get the right advice, If you want real advice and guidance on voluntary bankruptcy or just want to get on with it then we can provide a dedicated low cost bankruptcy service for you from a low $299, call now 0448 3333 01.

Declaring bankruptcy is not a crime or something you should be ashamed of and is a right afforded to anyone who resides in Australia when financial hardship takes hold.

Trying to avoid bankruptcy can sometimes create severe debt stress and only make matters worse. Remember this important point you came into this world with nothing you will leave this world with nothing everything in between is a a journey and bankruptcy can sometimes be a small detour to help you get back on track.

Insolvency Professionals are only to happy to give you free & friendly advice in strict confidence so call us today on 0448 3333 01.

Insolvency Professionals, work with all our clients on an individual case basis because no two liquidations or bankruptcy cases are the same. Before we commence we provide you with sound advice based on your case based on the real facts.

In most cases we can prevent you from going bankrupt or even having to liquidate. We know the bankruptcy law we know the bankruptcy act and most of all we know how to bring you out the other side by negotiation with banks and creditors even if you do need to file for bankruptcy.

We always provide a no obligation free consultation before we agree to accept your case we like to know our clients’ case on an individual case basis if we can help you we will. We are a company that is results driven.

We will win for you.

Contact Insolvency Professionals now 0448 3333 01 for more information on Gold Coast liquidation advice and bankruptcy help.

What makes Insolvency Professionals better? We know and understand the laws surrounding liquidation we know that each liquidation case is individual based on the desired outcome.

Insolvency Professionals can help you achieve a desired outcome especially in troubled times we get you the desired result every time.

The great part for you is the first 30 minutes are on us, if you don’t like what we have to say then walk away, that’s our guarantee to you our potential client.

Remembering at all times that when you are a client of Insolvency Professionals we act for you in the best interest of you or your business.

We know liquidation and we know that everything starts and finishes with credit so we will always get you the greatest outcome.

Contact Insolvency Professionals today for expert advice on liquidations.

Whilst the Australian economy had largely been sheltered from the worst of the global financial crisis, which led much of the rest of the world, including the US and the UK, into recession, the poor start to the year raised fears that our nation may dip into recession – defined as two consecutive quarters of negative economic growth.

Recession fears were further fuelled by the early econimic finacial data for the present quarter which has been soft.

“While the downturn can be largely explained by the disruption to coal exports caused by Cyclone Yasi, it only takes a small fall in output in the June quarter to produce a technical recession. “In short, there is no room for complacency.”

Treasury secretary Martin Parkinson admitted the latest national accounts were marginally larger then he had expected, but said the slump does not change the Government’s strong expectations for growth later this year.

“But there is nothing in the accounts to change our perspective of what will happen next,” he said.

Interest rates

The good news is that the Reserve Bank is now likely to hold on raising interest rates when it meets on Tuesday until the economic situation becomes clearer this means we should witness a furtehr interest rate drop by Melbourne Cup.

The reality is we are witnessing one of the highest enquiry rates ever with many Australians at a total loss their businesses are runningat a loss they can’t meet their mortgage payments and their credit card debt is at an all time high.

We understand that people are hurting from low income, high tax debt, credit card debt and we know we can help you.

Contact Insolvency Professionals today for fast advice.

You may have taken due diligence and care constructing and structuring your corporate entities to exonerate yourself from personal liability, however these new measures introduced by the labor government no longer provide protection with these corporate structures.

The reason we are witnessing this rise of liquidations throughout the Cairns and Tropical North Queensland has been a result from the sharp decline in tourism of these regions, caused by multiple factors- i.e. strong Australian dollar, decrease in asian tourism, domestic Australian travellers spending their dollars overseas. This has a chain effect including higher unemployment and business demise. Taking into account the major and well known industry in Queensland is tourism alone. This is what has led to the major rise in cases of both personal and corporate liquidations of Cairns and throughout the Northern Queensland region.

For assistance in Cairns Liquidation contact a Professional now at Insolvency Professionals on 07 3303 0864.

To find out more on how Insolvency Professionals can help you out during times of financial hardship. speak with a Professional now on Gold Coast Bankruptcy.

Phone Insolvency Professionals on 07 3303 0864 the Gold Coast Bankruptcy specialists.

Stop stressing you do not have to put up with it any longer contactInsolvency Professionals they have all the answers to stop the creditors calling.

You need to keep in mind that even creditors are bound by certain laws and legislation. We understand what these laws and legislations are so we will work with you to help combat and stop creditor harassment.

Contact a Professionals today from Insolvency Professionals on 07 3303 0864.