Hamilton Calvert Advisory

Who can go bankrupt?

Bankruptcy only applies to individuals and not companies. In cases where businesses operate as sole traders or partnerships, only the individual/s can become bankrupt, not the business entity itself.

Can I keep my job whilst I’m bankrupt?

Being bankrupt doesn’t normally stop you from working, but there are restrictions to be aware of: • Some trades and professions restrict you from working if you are bankrupt; and • Whilst you are bankrupt you can’t be a company director or officer.

Am I required to lodge and pay taxes and superannuation in Australia?

Directors in Australia must ensure timely payment of taxes and superannuation. Cash flow challenges may arise, but delaying lodgment isn't advisable. Failing to lodge promptly attracts Tax office scrutiny, potentially leading to personal liability.

What happens if you are facing financial difficulty?

If you or your business are being chased by creditors there are a number of different options available to you. The best thing to do is seek advice from an expert, such as Hamilton Calvert Advisory, to discuss your specific circumstances and the options available.

What are the key benefits of Small Business Restructuring?

It is a great opportunity that permanently removes financial distress for businesses in strife and during this process owners remain in control of business operations and creditor relationships. Put simply, you stay in control, you can continue to trade, and we stay out of your business.

What is bankruptcy?

It’s a legal process where a person is declared bankrupt if they are unable to pay their debts due to creditors and a bankruptcy trustee is appointed to manage the individual’s bankruptcy.

What is Small Business Restructuring?

Small Business Restructuring was introduced by the Government in the wake of the financial turmoil of Covid and provides pathways to save as many businesses as possible. Small Business Restructuring allows eligible small businesses in financial difficulty a one-off opportunity to restructure their company debt and reach a legal binding agreement with their creditors.

How does Small Business Restructuring differ to other types of external administration?

This process is simpler, faster and far cheaper than other forms of external administration and is already proving to be the “go-to “solution for many small businesses in financial difficulty.

Can I earn income whilst I’m bankrupt?

While bankrupt, there's no earning limit, but if after-tax income surpasses a threshold, contributions to the trustee are required, varying with dependents.

If you are having trouble managing tax debt what should you do?

You should speak to your accountant about managing debt. But, if it’s too hard to navigate, our firm may be able to assist in formulating a plan including small business restructuring aimed at permanently dealing with tax debt.