Jones Partner


Reinventing the ATO – More Insolvencies & Bankruptcies Possible!

24/03/2015 by Bruce Gleeson

Tax Commissioner Mr Chris Jordan has said in a speech to the Tax Institute on 19 March 2015 that the Australian Taxation Office (“ATO”) is bringing forward the point at which it takes legal action to recover debts from both individuals and companies. Is this a good thing or bad news? As a Registered Liquidator and Registered Bankruptcy Trustee, I see too often the impact of when family business owners (or SMEs) and individuals don’t treat the ATO with the same priority as other creditors. Left unresolved it typically means the forced liquidation of a company or bankruptcy of the individual. Consequently, I believe the recent announcement is a good thing for a couple of main reasons:

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Unemployment and Credit Card Debts – The Major Causes of Bankruptcy in 2014

17/03/2015 by Bruce Gleeson

Recent statistics issued by the Australian Financial Security Authority (“AFSA”) reveal that for the 2013/14 financial year unemployment/loss of income (8,418) and excessive use of credit card facilities (6,999) were the top 2 causes of personal insolvency. These causes have remained relatively stable since 2007/08 and are not necessarily a huge surprise. Whilst not overly unexpected, in my experience as a Bankruptcy Trustee it does illustrate what I find commonly happens and should serve as a timely reminder for individuals who may find themselves in a position where their employment has been terminated. When there is a loss of employment, it is not uncommon after the termination paym

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Voluntary Bankruptcy – A big thank you from the Bankrupt! Strange – Not Really

12/03/2015 by Bruce Gleeson

Recently I received an email from a former Bankrupt whose bankruptcy I had been administering. The email said “thank you both for your handling of this matter. Whilst a stressful time, your communication and consideration was very much appreciated”. This individual had accumulated a range of credit card debts of just over $350,000. The incurrence of such debts was largely due to some significant health and family issues that he had been trying to deal with over many years. However, it got to the point where he could no longer make any headway on the level of credit card debt, despite earning a six figure salary. The inability to reduce the debt was taking a toll on his health and ove

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Insolvent Builders & Home Warranty Insurance (“HWI”)

20/03/2014 by Bruce Gleeson

For many individuals or couples one of the biggest purchases in their lives will be the construction of a new home. Unfortunately over the years there have been many residential home builders that have gone into some form of insolvency administration and ceased to trade, leaving home owners with an incomplete home and lots of worries. We are frequently appointed as Voluntary Administrators or Liquidators to residential home builders where they are insolvent. In one recent matter, there has been an instance where the HWI policies were not adequate to cover all costs incurred in completing the homes. We highlight in this article some important considerations customers should give if such an

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Insolvency and Bankruptcy Numbers – Not What You Might Expect!

by Bruce Gleeson

Welcome to our first Newsletter for 2014. A subject we are frequently asked about is what are the insolvency and bankruptcy statistics doing and what inferences can be gleaned from them. During the course of the calendar year we will be providing a regular commentary on movements. Set out in this article are graphs for NSW and Australia for corporate insolvencies and personal bankruptcies / personal insolvency agreements (“PIAs”) during the period 2010 to 2013 inclusive. Some key observations are: Corporate Insolvencies In both NSW and Australia appointments decreased by approximately 2% in the 2013 December quarter on the previous corresponding period (“PCP”). In NSW there

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Strengthening our Presence in Greater Western Sydney

24/09/2013 by Bruce Gleeson

For many years now, Jones Partners has truly valued that importance of being accessible to professional advisors and business owners and individuals throughout Greater Western Sydney (“GWS”). The GWS  region is a very significant contributor to the States GDP and has a huge diversity in the range of businesses that operate within it. Our continued presence (via our Norwest Business Park Office) has enabled us to develop strong relationships with other professionals such as accountants, lawyers and financiers, as well as and importantly assist business owners and individuals in this region who may get into financial difficulty. Having a very strong and keen interest in what happens i

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Personal bankruptcies decline for the quarter ended 30 June 2013

16/07/2013 by Bruce Gleeson

The quarterly personal insolvency statistics for the June quarter 2013 show that personal insolvency activity declined by almost 1.4% when compared to the June quarter 2012. Interestingly NSW, QLD, WA and Tasmania all recorded falls in personal insolvency activity whereas Victoria, SA, ACT and Northern Territory all recorded increases. Bankruptcy numbers (which accounts for approximately 68% of the personal insolvency numbers for the June quarter 2013 ) actually fell by 3.93% when compared to the June quarter 2012. NSW accounted for approximately 32% of bankruptcies across Australia for the June quarter 2013. Personal Insolvency Agreements (also known as Part X Arrangements) also decli

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Bankruptcy

10/04/2013 by Bruce Gleeson

Will you be able to keep the house? This is a question I get asked frequently by individuals that may need to contemplate voluntary bankruptcy. The short answer is YES, however it is important to understand that a bankruptcy trustee has an obligation to realise certain assets for the benefit of creditors. This includes equity you may have in the family home. It is possible for a co-owner or other family member to acquire your share of the equity in the family home from the bankruptcy trustee provided that the trustee believes it is a fair offer. It is important to examine each situation independently so that you are aware of how the bankruptcy trustee approaches determining the equity positi

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