Trustworthy Debt Trouble Assistance when Dealing with Insolvency
Setting up a new venture is regarded as risky, even if you submit a comprehensive business plan that explains how you intend making a success of the venture. Many entrepreneurs are so determined to make a go of their new business they even use up their personal savings, realizing all too well that insufficient capital is a key cause of small business failure.
Cash is the lifeblood of any business and should be managed carefully because debt trouble is a sobering reality check. A company is responsible for every action they take, and spending within your income is the first step to sound money management.
Sometimes Financial Difficulties can’t be Settled Outside Court
If informal negotiations don’t work for a company, there are other options to consider. In New South Wales they offer a small claims division of their local court which provides a simple debt recovery procedure for amounts up to about $10,000. If the debt is over that amount, action can still be brought against the debtor, but legal representation may be necessary.
In NSW debt recovery claims up to about $100,000 are handled and larger amounts are dealt with in the district or supreme court of NSW. Small claims action can be brought against sole traders, partnerships or a corporate entity.
An Orderly Payment of Debts
Most businesses who have managed to crawl out of their debt emerge with reformed financial habits. Of course, reducing spending should always be at the top of a company’s ‘getting out of debt trouble’ list while declaring bankruptcy should be the last resort as it leaves a financial legacy that can be detrimental to the success of a company for years.
Striking a deal with banks and with company suppliers can buy a company a bit of time and peace of mind. Once a business is declared insolvent in Australia, the directors have a statutory duty to act in the best interests of the company’s creditors. Liquidator’s fees are paid first, then secured creditors and if anything is left over, ordinary debtor’s get paid.
For a company to steer clear of debt trouble again, there are ways a director can steer the company in order to avoid having to file for bankruptcy:
- eliminate unnecessary costs
- prioritise debt payments
- with tax debt trouble, the Australian Taxation Office understands that a company may not be able to submit their tax returns on time because of financial difficulty and they urge businesses to contact them so that they at least know about the situation so that appropriate arrangements can be made.
- check out the company’s budget
- speak with creditors
- consolidate loans – this is where one loan is taken out to pay off many others. The benefit of a debt consolidation loan for a company is that lower interest rates are secured while the company services just one loan.
- get help and eliminate harassing calls from creditors. Creditors attempt to recover the debt by communicating with the debtor and may have already resorted to a formal letter threatening legal action from a debt recovery specialist law firm.
Restore a Negative Credit Report
Even for a company with a negative listing on their credit report, there is hope because there are companies who have an Australian Credit Licence which has been issued by the Government and they offer Credit Restoration services and are able to remove negative listings so that a company is able to get some form of credit.
Normally applying for credit would require a credit check and a company being turned down for credit. Things like defaults, overdue accounts, judgments and defaults can be removed from your credit report.
Get an Understanding Team of Debt Help Professional on your Side
Failure to pay debts can lead to the debtor being forced into liquidation. Debt trouble help from experts like My Tax Debt can be a relief for a company because you get a team of helpful professionals on your side who offer a company complete confidentiality while they sort out a solution and negotiate repayment arrangements with creditors.
Apart from private law firms there are also a number of government and community organisations providing free and useful information and support services which help to get a business back on track and help them recover from financial crisis. They assist with company and business liquidation as well as administration services, acting as a buffer between the company and relentless creditors.
You can even get an online debt assessment by making use of the free assessment tool to get an idea of your debt situation. Debt help experts like My Tax Debt are committed to providing cost effective solutions for their clients’, and to this end they offer a range of services designed to meet their client’s needs and to identify the best solutions to help them out of debt trouble and into a new and profitable era.