Bankruptcy Repair

Companies Trading Insolvent

The number of companies trading at a lossincreased in the 2009-10 year, according to the latest figures from the Australian Taxation Office, SmartCompany has reported.

The figures come just one day after Australian Securities and Investment Commission figures showed the number of companies entering external administration reached its peak during February 2012, a sign the number of loss-making companies could have increased further over the past two years.

They also appear as the Government considers a recommendation to introduce a “carry back” loss scheme, which would allow small businesses to use profits from previous years to offset a loss.

“I wouldn’t say this is a small increase,” Institute of Chartered Accountants general manager Yasser El-Ansary said. “Even a fraction of a per cent can mean anything from 5,000 to 10,000 businesses, or more. That’s still plenty of businesses that would have moved from a position of paying tax to making a loss.”

The ATO statistics for the 2009-10 year reveal a trove of details, including that individuals declared a total income of $605.6 billion, up by 3.7% from the previous year. Individuals also claimed $29.7 billion in total deductions, down 6.1% from the previous year.

The company statistics also reveal some sobering figures. Companies reported total income of $2,212 billion, down 2.6% from the previous year.

And the number of non-taxable companies – companies that aren’t making a profit at all – increased by 5.1%. The number of companies trading at a loss increased from 34.7% to 35.1%, an increase of 8,741. However, El-Ansary points out the data is two to three years old, at a time when the economic climate was “extremely different”.

“Businesses at that time were doing it very tough, compared to the climate we’re in at the moment. Things have improved marginally for small businesses, but during this time it was right at the peak of the fiscal stimulus program.”

Yet company insolvency figures are at record highs, and the Housing Industry Association figures released yesterday showed new home sales are at their lowest in nearly two decades. Collapses remain high in the retail and construction sectors.

El-Ansary says while it’s impossible to know whether the number of loss-making companies has increased in the past two years, the environment remains harsh for SMEs.

“When you look at the insolvency statistics or you go out into the community and talk to small business owners, the picture becomes quite clear.

“People are no longer able to access cheap funding sources. And, unfortunately, it’s very concerning because there is no end in sight for the softness in many of these sectors.”

The ATO figures also reveal some disappointing numbers for property investors. There were 1,751,679 investors declared, equalling out to about one in seven taxpayers. Although the number of losses decreased, there were still $4.810 billion in losses.

The statistics also revealed self-managed superannuation funds paid 70% less tax than the previous year, down from $1 billion to $287 million.

Liquidation for $5,000+ GST

For the months of May and June, Bankruptcy Repair will be doing all company liquidations for a fixed fee of $5,000.00 Plus GST. This is the cheapest liquidation price ever offered in Australia and is designed to help struggling companies and businesses liquidate without the fuss and cost of big time liquidations.

Liquidation is a process that takes place very easily and is now cost effective. Insolvency Guardian are offering the cheapest liquidations in the country for the months of May and June 2012 so you can take advantage of bringing the company affairs to an orderly end without the fuss.

For a fixed fee of $5000.00, we will Liquidate your company and all you have to do is call us. We will take care of the company minutes, help you complete the two compulsory forms being the ASIC form 509 and form 507 currently called a Report as to Affairs a “RATA”.

All this for just $5000.00 and yes this is really true ! We are on your side and here to help you bring your company affairs into order whether it be by an informal administration or by company liquidation we can help you by offering you a free one hour consultation before we even begin.

To take advantage of this great offer, call Bankruptcy Repair on 1300 60 70 60 and speak to one of our professional staff who can assist you by solving your financial worries through company liquidation.

Who can help me with bankruptcy?

Are you facing bankruptcy? Bankruptcy Repair is here to help you.

We work in close partnership with Insolvency Guardian Australia, who are your local your team of professional personal and business insolvency experts. Insolvency Guardian is dedicated to helping businesses and individuals to recover from financial crisis by eliminating solvency issues. If you are trying to deal with debt, liquidation, bankruptcy or financial problems then Insolvency Guardian will help you regain control of your declining situation fast.

Insolvency Guardian will work with complete confidentiality and sensitivity when advising you on your situation, and use proven strategies all tailored to the individual needs of you and your business, to put in place a holistic approach for restructuring your finances, assets and payments to create the best possible outcome for you and your creditors.

Insolvency Guardian work with you, your lawyers and accountants, providing practical advice and solutions to safeguard your financial future. Contact our professional team of personal insolvency experts today for an obligation free consultation on all our insolvency consulting services.

Insolvency Guardian are your first and only choice when it comes to Personal Insolvency Agreements, Section 73 Proposals, Part IX, Part X, DOCA’s, Company Liquidations and Personal Insolvency.

Even if you are trying to save on your payroll tax, or restructure your business to save money and preserve profits in these trying times, we have teams in every major city of Australia, and brokerages in regional and remote that are trained and equipped to resolve any issue you have.

Our highly-trained Forensic Accountants are standing by to quantify your loss, should the need arise, and our insolvency and reconstruction specialists are waiting to help you through your current crisis. Everyone’s personal financial situations are unique and highly sensitive, and at Insolvency Guardian, we understand this, and are in a unique position as the only National Pre-Insolvency firm that can respond rapidly and with great expertise to get to grips with your situation and get you the desired result.

Insolvency Guardian Australia are members of the Financial Ombudsman Service and one or more of the company directors are members of The Turn Around Management Association, this gives us access to the very latest industry thinking, training, networks and industry best practice so that our highly skilled and well informed personnel can find a strategy that best suits your needs and situation.

Call us now to find out how we can solve your issues before they become problems on 1300 60 70 60.

How Does Bankruptcy Occur?

The technical definition of Bankruptcy is when a person or a business does not have the financial resources to pay all of their current debts at the time those debts become due and payable.

It is more common than you might think, and affects thousands of Australians each and every year.

Although your circumstances may appear grim, do not lose hope as you do have options.

Contact Bankruptcy Repair today on 1300 60 70 60 to discuss how our discrete and professional team can develop a strategy for you that may yet result in you avoiding bankruptcy.

Are You Facing Bankruptcy?

When a person is in economic distress, it may still be possible to avoid bankruptcy by being alert to some key warning signs, the most important of which are listed below.

Key pre-bankruptcy warning signs:

1. Tax lien or foreclosure on your home, or repossession of a car or other item you failed to make timely payments on. These are signs that the wheels are coming off your financial situation.

2. Maxing out on your credit cards or charging more than you can pay off each month. Credit card debt is one of the major factors in lots of bankruptcies. It’s not a good idea to use more than 40% of your available credit at any one time. This gives you flexibility in case of job loss, illness, divorce, or other threat to your income.

3. Paying the minimum balance on your credit cards. Since it can take 20 to 30 years to pay off your credit card balance when you pay only the minimum payment, if that’s all you can afford to pay, you really can’t afford to buy whatever it is you’ve been buying. Have you checked the interest rate on your credit card balance?

4. Over-using home equity loans. Give careful thought to any inclination you might have to use your home equity loanor line of credit for items other than home improvements. Make sure you can afford the payments without strain.

5. No emergency fund. If you live from paycheck to paycheck with little or no savings for emergencies, you’re at risk for bankruptcy. Are you one of the nearly 1 in 2 Australians who do not have at least $1,000 in savings?

6. Co-signing a loan for someone else. Co-signing loans can lead to trouble. The fact that a person needs a co-signer may indicate he or she is a credit risk. You could end up being stuck. Ill-advised co-signing is a common factor in many bankruptcies.

7. No health insurance or inadequate coverage. An illness can strike without warning. Injurious accidents are usually not planned. Yes, things can easily go wrong in a hurry. Medical bills are a factor in one out of five bankruptcies!

9. Harassing phone calls from creditors. If you are avoiding the letter box and the letting the phone ring because you are too afraid to speak to collection agencies, this is a sure sign that not all is well with your finances.

If you are currently experiencing any of these problems, don’t wait until it is too late. You need the right advice from a licenced and accredited insolvency practitioner to discuss your options.

Don’t live in fear. Be proactive and take steps to rescue your financial situation. Call us today on 1300 60 70 60