Jones Partner


Bankruptcy & Financial Rehabilitation of Individuals

16/10/2019 by Bruce Gleeson

By Bruce Gleeson, FCA FCPA RITF Director – Jones Partners Insolvency & Business Recovery Bankruptcy is a concept that is frequently misunderstood, particularly given that in Australia it relates to the affairs of an individual as opposed to a company (noting in America the term is used for both). It can also conjure up in an uninformed individual’s mind a range of emotions – many of which are incorrect. Findings from a recent and detailed study of bankruptcy in Australia present some useful information. Importantly, as I wrote in my last article voluntary bankruptcy should always be considered as a last resort option after consideration of other possibilities have been eva

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It doesn’t need to always end in bankruptcy?

19/08/2019 by Bruce Gleeson

Over the twenty-five (25) years that I have been advising individuals who have been in some form of financial difficulty, I believe between 15-20% of those bankruptcies to which I have been appointed could have been avoided if the individual had talked about their money problems early on with a qualified professional and put in place the right strategy to deal with their debts. So what should you do if you have money problems? Bankruptcy should always be viewed as a last resort option after consideration of other possibilities have been evaluated and are deemed not viable or achievable. Declaring voluntary bankruptcy is not an easy decision for the individual in my experience and brings w

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Australian bankruptcy numbers at a 24-year low. Credit card lending at an 8-year low. Is this good news?

14/08/2019 by Bruce Gleeson

Before we crack open the champagne, we need to put these statistics into perspective rather than looking at them in isolation – specifically let’s look at what appears to have been happening in the economy over the past few years to get a deeper sense of what might be in store down the track and what households and business owners should focus on. According to March 2019 data, the annual inflation rate is running at 1.3% – well below the RBA target range of 2-3%. Also, with approximately 60% of our economic growth dependent on household spending, there is little doubt that any pullback by households is going to have an impact on economic growth and therefore inflation

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Why dealing with financial stress is critical to your health

01/03/2019 by Bruce Gleeson

Why dealing with financial stress is critical to your health By Bruce Gleeson FCA, FCPA, RITF Principal, Jones Partners Insolvency & Business Recovery Corporate insolvency levels in Australia only account for about 0.30%* of all companies registered with the Australian Securities & Investment Commission (“ASIC”) and similarly personal insolvencies account for about 0.25% of all working age individuals^. Therefore, with such low occurrences, it can be very easy to be dismissive of people in financial difficulty. However, walk in the shoes of any business owner or individual that has had to enter into some form of corporate or personal insolvency (either on a voluntary or in

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Getting into Debt is Easy. Getting out of Debt is Hard. What Should You Do?!

07/01/2019 by Bruce Gleeson

As we start the new year, I truly believe it is critical to allocate time to review where you are at and to reset / establish your financial and personal development action plan and goals for the upcoming year and beyond (a 2-year plan is good because it enables some bigger goals to be set). For those that haven’t got a plan, there is no better time to start. But don’t just make it a one-off, be disciplined and persistent with it. Your plan should be reviewed at regular intervals throughout the year to ensure that you are still on track to achieve your goals, and if you are not, then you can consider what you might need to alter to get there. Financial and personal success (which can

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Are You Struggling To Pay Your Debts? Don’t Take The Easy Way Out?

19/10/2018 by Bruce Gleeson

Recently I wrote about personal insolvency statistics revealing an increase of 5.6% between 30 June 2017 to 30 June 2018 and that the increase should not be easily dismissed given the present and emerging landscape when considering a lack of real wage growth, increasing living costs and increasing mortgage costs. This article will discuss what you should do if you can’t pay your debts. All too often when individuals get into financial difficulty (which could be from unemployment, ill health, relationship breakdown or economic conditions), they look for the easy way out. After all, we all want the quick fix, don’t we?! That could be in the form of getting yet another credit card(s), a

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Personal Insolvencies on the rise. Is the squeeze starting to take effect?

23/08/2018 by Bruce Gleeson

Personal insolvency statistics recently released revealed that there was a 5.6% increase in personal insolvency levels between the period 30 June 2017 to 30 June 2018. Whilst this increase may be swatted away as nothing to worry about by some, to me it is indicative of a general change and a signal of potentially challenging times ahead for many individuals and / or families. Notwithstanding that some of the headline economic statistics for Australia remain solid, i.e. modest levels of GDP and low levels of unemployment, there is no doubt that many individuals and families are now starting to feel the on-going impacts of: 1. An inability to secure all the work that they would like to h

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Government releases draft legislation to combat illegal phoenix activity

16/08/2018 by Bruce Gleeson

The Government announced via the media release http://kmo.ministers.treasury.gov.au/media-release/097-2018/ that it is intending to continue with previous commentary made by it to try and tackle the issue of illegal phoenix activity. As such draft legislation has been formulated and is currently available for review. Among various reforms will be a new offence seeking to target pre-insolvency advisors and those complicit in facilitating illegal phoenix activity. Whilst I fully support this, ultimately the true test will be whether the legislation is drafted in such a manner that it can be effectively used and additionally will ASIC actually use to the anticipated legislation to prosecute!

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Loans versus Gifts – Bankruptcy and Death – Why Should a Loan be Documented?

02/07/2018 by Bruce Gleeson

During the twenty-five (25) years experience and counting that I have had in administering bankruptcy matters, the issues in identifying whether monies provided to a bankrupt by a family member or friend are a loan or a gift will largely be determined by the facts and importantly documentation at hand (collectively called the evidence). Much like watching a CSI program, the Bankruptcy Trustee will be guided in making their decision with reference to the evidence. In a bankruptcy matter that I am presently administering, an issue arose where the Bankrupt was claiming that his father was an unsecured creditor of the Bankrupt Estate for about $50,000. Whilst on the face of it, that sounds strai

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Franchising – David versus Goliath! Can the system ever be perfect?

24/04/2018 by Bruce Gleeson

Despite reviews of the Franchising Code in 2007, 2010 and 2013, recent Franchisee disquiet regarding high profile retail franchises and indeed Franchisor failure (i.e. Red Lea Chickens) have many parties asking whether or not there should be further amendments to the Code and other legislation. This article will make three (3) observations regarding possible changes. Indeed in late March 2018 the Federal Government has announced another enquirer whereby the Committee appointed is due to report back to Government in September 2018. Simply put a franchise is an agreement in which a “brand” owner, the Franchisor, allows a Franchisee to trade under that brand and typically allows or requ

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