Bankruptcy Example 1

Mitch had been in business for many years. His business started to suffer because of the economy and all his expenses going up.

He owed $58,042.00 all together. His business which was being run as a Pty Ltd Company also owed more than $50,000.00 to the Tax office. His debts were, Guarantee of company debt 1 $26,937.00, Credit Card $17,507.00, Guarantee of company debt 2 $500.00, Electricity account 1 $2,882.00, Electricity account 2 $7,043.00 and Guarantee of company debt 3 $3,173.00

He was behind in all payments and had the Debt Collectors calling. He said it was stressing him out and he had no idea what to do.

After talking to him he decided there was simply no way he could pay the debts off. It would take him forever. We helped him declare bankruptcy and sorted out the legal formalities of his Pty Ltd company. We were able to advise him on his options for running his business. He now still has his business under a different but allowable structure and all the stress is behind him.

Note: your situation may be different and require a different strategy.