Category Archives: Financial Services

Identifying Non-Divisible Assets in Bankruptcy

A creditor must establish that the debt owed was insolvent before commencing the proceedings of going bankrupt Australia law provides for concerning insolvent debtors. Insolvency for the creditor’s petition is established by proof of deed or the debtor having committed a bankruptcy act as spelt out within the bankruptcy legislation.

going bankrupt australia

You could be asking yourself what happens if I go bankrupt and what kinds of assets do I get to keep during a bankruptcy situation. Those that someone is allowed to keep in such event are known as non-divisible assets and they enjoy protection from the Trustee. In most cases, these assets include the following in most cases.

Household items

These include all household items deemed as necessary, such as furniture, laundry equipment, bedding, clothing, educational tools and sporting equipment. Under the legal provisions of going bankrupt Australia has, a bankrupt person who possesses antique furniture or multiple television sets does not however enjoy protection from the trustee for purposes of debt recovery.

Personal Items

Items of this nature can include wedding ring, photographs or other items regarded as having sentimental value. A bankrupt person should be aware nonetheless that items like these require being disclosed to the trustee. As well, your creditors need to approve certain items before being retained as non-divisible bankruptcy asset.

Motor vehicles

Normally, vehicles qualify as non-divisible bankruptcy assets if their value in equity is either $6,850 or lower. Such vehicles require should be for purposes of primary transportation. The Insolvency Trustee Services Australia regularly updates the equity values of such vehicles for public notification on how to go bankrupt in Australia.

Tools of Trade

One can keep tools valued up to $3,400 to help in earning some personal income. As well, the Insolvency Trustee Services Australia carries out routine valuation updates of these tools of trade.

Superannuation

Generally, funds held in the superannuation account of a bankrupt individual benefit from against the trustee. However, funds proceeding from ordinary course of business could be deposited into a superannuation account before the date of bankruptcy. In such cases, the trustee of a bankrupt estate can access the amount deposited for recovery purposes.

Life insurance policies for One or the Spouse

You may receive a payout for life insurance subsequent to your bankruptcy date. Such payout is equally afforded protection from being recovered by the trustee, as required by the laws of going bankrupt Australia provides.

Personal Injury Compensation

The funds one receives as compensation for personal injury are exempt from recovery by the trustee. In addition, assets bought using such money are also exempted from recovery by the trustee.

Assets Held for another Individual

Funds held in trust for another person, such as child’s bank account or education fund, too are exempt from being recovered by a trustee.

Several reasons make an act of bankruptcy important, which are vital to know if asking yourself what happens when you go bankrupt in Australia. It acts as a solvency test for a creditor to present a petition. Being unable to offset debts to creditors might be insufficient repetition unless a formal bankruptcy act is involved. The bankruptcy act also serves as the commencement date of bankruptcy for a person who is declared bankrupt on a creditor’s petition. An order of sequestration relates back to the earliest bankruptcy act committed by the debtor within the six-month period prior to presentation of the petition.

Reasons Why Borrowers Utilize Hard Money Loans

The higher costs of hard money loans are oftentimes well worth the purpose served by this type lending facility. Generally, hard money loans afford lenders the opportunity of earning attractive yields while benefiting their clients with a chance to improve their lives. A couple of reasons make these forms of loaning appealing to borrowers.

Bad credit record

A borrower who has a damaged credit record can find it very difficult obtaining loans through conventional or institutional lenders. Banks especially hardly take a look at a debtor for loan-qualification before perusing their collateral offers. Hard money lenders however operate in the opposite manner. They have a unique concern about property and strive to strike a sound balance between their interests and those of the borrowers. People in need of utilizing such facilities can get in touch with trusted players such as

Hard Money Lenders California – http://evoquelending.com/ – Evoque Lending.

Hard Money Lenders California - http://evoquelending.com/ - Evoque Lending

Documenting Income

Documentation of income is a prime reason why people borrow hard loans. It is difficult to obtain funding when if unable to prove your source of income. A borrower might have experienced losses due to investments done in the previous years and be still writing off recent tax returns. In general, hard lenders do not show much concern about income, with the understanding that self-employed debtors oftentimes have larger amounts of income than they can demonstrate. Lenders of hard money are more interested rather in seeing evidence of solid deals and cash in the bank. These lenders can then get into deal comfortably, having received confirmation that loan repayments will be conducted based upon what amount of cash the borrower actually has currently.

Timing

Many borrowers opt to work with flexible lending facilities like Hard Money Lenders California – http://evoquelending.com/ – Evoque Lending, especially due to their timing flexibility in providing these much-needed loans. It means that deals can be done quite fast and at times within just days of taking the loan amount. This factor makes the loan offers a much more strategic facility for the ordinary borrower.

Doing Business in Comfort

Traditional options for financing make it rather challenging for the average person to qualify for a loan. Underwriters are normally very careful to check reasons as to why they can refuse to give out loans, especially on offers they deem as unreasonable. Hard money lenders peruse these same documents, but are able to see the business opportunity that the ordinary borrower presents to them.

Less money out of pocket

In many cases, hard money lenders generally offer a loan-size without requiring huge down-payments of cash as collateral. However, traditional lending institutions usually ask to see larger amounts of down-payments and rarely get to fund any repairs. A borrower who secures a deal while having smaller cash-amount can thus carry out more deals while expecting higher Returns on Investment (ROI).

It is easy for instance to view Hard Money Lenders California – http://evoquelending.com/ – Evoque Lending and like hard money financiers, as being unfair since they charge fairly higher amounts of interest rates to borrowers. Hard money however plays a crucial role in the investment marketplace for real estate as it fills a need created by absence of traditional financial sources.

Looking for property finances? Hire the services of a mortgage broker

Acquiring a home is deemed as one of the biggest investments by almost every person. Over time the house will appreciate, and you can dispose it at a higher value. Getting the finances to get the house is one of the biggest challenges. There are many lenders in the market. They have different rates and terms. If you lack the proper knowledge and experience, you may not get the best deal in the market. Getting a guiding expert like a mortgage broker - Your Loan Solutions offers can be essential to get the best deals in the market that fits your preferences and needs.

They do the legwork

There is a lot of work in acquiring a home. You first need to identify the home that will meet your loan needs. Then you have to go through the application and the settlement process. During the settlement process, you have to do some paperwork, source for pre-approval and apply for various incentives and government grants. Experienced mortgage brokers understand the process and will handle the process within a short time and will keep you informed during the entire process.

Convenient appointments

Looking for that ideal home can be a daunting task. You require a lot of time to meet various sellers and also make it to several appointments. If you have a busy schedule, that could be difficult to achieve. These brokers are flexible and will make it to the meetings and can be willing to work for several hours and during the weekends upon demand.

Fast and easy loan comparisons

A mortgage broker will take the time to go through your individual goals and circumstances. They have a huge access to loans from various lenders. They have connections with the huge local and international banks and credit unions. That gives them a broad scope to look out for the best loan that will fit your needs and circumstances. The broker will help you compare the rates of several banks which you may not be in the position to do when working on your own.

Expert advice and experience

The real estate sector is dynamic, and one needs to understand the various dynamics. Look out for a broker who specializes in property financing. The Mortgage Broker – Your Loan Soltutions can take you through different loan options and their terms and conditions. They will outline the advantages and disadvantages of each which are valuable for you before making the final decision.

Pre-qualification

There are times you may apply for a loan and are futile for various reasons. That leaves a mark on your loan history. The mortgage brokers have special software that accesses the updated credit information of the different lenders. They then match the information to your individual goals and circumstances. That helps them identify the lender who you can apply from successfully. See more at Your Loan Solutions

No charge for loan service

Although their fees vary, most brokers work on commissions. They rely on the commissions they receive from the lenders. It is, however, wise to discuss their fees structure before using their services.

Hiring someone like a mortgage broker – Your Loan Soltutions may seem like an expensive option. However, you save a lot of time and money by hiring the services. They will offer you expert services and will ensure you get the best deal that meets your needs and circumstances. For more details, just visit http://www.yourloansolutions.com.au.

Why take protection insurance for random audits

According to the law prevailing in Australia, the Australian Tax Office (ATO) is entrusted with the task of conducting random audit of companies and various other establishments. The purpose of this audit is to ensure that you have complied with the tax law of the State. At the same time, during the process of audit by the ATO, you may have to incur certain expenses like fee for the auditor and so on. In such cases, you may avail the benefits of audit protection insurance, which protects your firm from such unforeseen expenditure.

Chosen randomly:

As already said, ATO conducts the audit randomly. The ATO may randomly select your business enterprise and conduct the audit. In the normal course, by rotation most of the organizations come under the scrutiny of ATO at least once in every four years.

Cuts into profit:

This audit is conducted without giving prior notice to you. At the same time, the expenses on random audit can be huge. In such cases, you might not have created a budget to meet the expenses on such random audit. Naturally, it will be an extra burden on your income. In order to cover such unforeseen expenses, you may take up the audit protection insurance.

Compliance with related laws:

While conducting the random audit, the ATO will examine your compliance with the tax law on matters relating to payroll tax, land tax, compensation to workers, development grants if any, GST, superannuation payments and various other incomes. In addition to this, the ATO will also examine, while dealing such matters, whether you have also complied with various related legislations that may be in force.

Look for old records:

Once the ATO starts the random audit, you are obliged to provide him all the necessary records. In the normal course, the ATO may also require written explanation on various accounting or legal issues. In such cases, your staff may have to work extra hours to dig the old records for which you may have to compensate the staff suitably.

Services of Attorneys or Chartered Accountants:

There can also be instances that you may have to take the assistance of your attorneys or chartered accountants to provide suitable clarifications to the ATO. In such cases, you will have to pay a suitable remuneration to the attorney and the chartered accountants. All these will involve huge expenditure and in order to meet such unforeseen expenses it would be ideal that you may take an audit protection insurance.

Management Liability Insurance:

At the same time, it should be noted that protection insurance for audit is different from the Management Liability Insurance. The random audit conducted by the ATO is not covered by the Management Liability Insurance.

Choose a suitable insurance policy:

You can take the insurance from any of the reputed insurers. The terms and conditions of insurance for audit protection differ from one insurance company to another. Some of the insurance companies have a unique insurance policy which covers both SMSF and tax audits. It would be ideal that you may contact your chartered accountant who would help you to choose an insurance policy that is suitable for your business.