Tuesday, March 22, 2016

Bankruptcy in Australia - Are you going to get bitten?


When people in Australia ask me about Bankruptcy, I tell them the classic Native American Fable of the little boy and the Rattlesnake. An old rattlesnake asks a passing young boy to carry him to the mountain top to see one last sunset before he passes away. The boy was hesitant, but the rattlesnake vowed not to bite him in exchange for the ride. They journeyed together only for the snake to eventually bite the boy despite his assurance not to do so. The snake's answer was 'You knew what I was when you picked me up.

Asking for the right financial advice in Australia when it relates to Bankruptcy is a whole lot like that little boy's encounter, fraught with risk and danger, and generally skewed for the benefit of the individual supplying the advice. In many cases you'll get bitten unless you know what you've picked up long before you move forward (avoid the rattlesnakes). I discovered the problem with obtaining financial advice as a teenager, and it has been vital to Bankruptcy. I'd been working hard for a few years, and saved up a little bit of money I wanted to invest. It was the early 1980s so interest rates were quite high and investing your money was rather profitable. I spent some time researching numerous investment options, and I went to visit a few financial advisors. It was clear that they had more money than I did: they had nice suits and plush offices, they all seemed to exude confidence and have all the answers. What hit me was that they all had a really different idea of what I should do. This baffled me a lot that it put me off the entire idea of going with any of them.

I'm sure currently you have read more than enough on the internet to be totally overwhelmed about Bankruptcy and exactly what to do. It would undoubtedly be easier for me to help you understand the nature of the financial snakes you might be grasping while you are trying to get to the bottom of your financial problems in Australia. Essentially, you need to try and comprehend what your overarching options are, do your own research into where to proceed with your strategy for Bankruptcy, and then approach what you feel is best in Australia for your requirements. Essentially, you have 3 options for who to turn to.

The first option is a Solicitor - This may appear like the go-to approach when you seem to be in trouble. But generally there is only just so much support they can give on this matter. There are certainly specialist legal advisors in bankruptcy, but their experience comes along with a hefty price.

Another solution you may think of is your accountant - they are incredibly helpful and vital to the task of managing your business, but for the most part, when you are thinking about Bankruptcy, your accountant won't be much help to you at all.

Your best bet? A Financial Counsellor that can talk about debt consolidation, personal insolvency agreements, and basically all you have to know when it comes to Bankruptcy.


If you would like to find out more about what to do, where to turn and what questions to ask about Bankruptcy, then feel free to speak to Liquidation Service on 1300 795 575, or visit our website: liquidationservice.com.au.com.au.