Creditors paid 100 cents in the dollar
Hamilton Calvert Advisory
To do it three times is no fluke
We are very pleased to advise that for the 3rd time our firm has paid 100 cents in the dollar, on two occasions we have also paid interest.
How did we do this? – Firstly
- We congratulate the directors who worked with us to maximise returns;
- We congratulate the company’s legal adviser for identifying the insolvency and seeing a way forward; and
- We congratulate the company’s accountants for working with us to ensure the company utilised its best taxation outcome.
The rest comes down to Team ethos. Our team leader on this file was Jennifer Henwood who maintained:
- Clear and consistent communication with the directors;
- Carefully navigated the tax consequences of sales to ensure carry forward losses could be utilised;
- Controlled all of the nitty gritty issues to keep creditors and stakeholders on the same page;
- Provided timely and regular reporting; and
- Gave ASIC good communication and did not need to go down the offences and reporting path.
We worked to a budget which we kept the directors informed of, we didn’t burn and churn and remain focused on the goal, this week we paid 100 % of all claims including interest.
Thanks Jennifer for your persistence, a great team effort.
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New pathway helping small businesses get out of debt and keep their doors open
Persistence pays off
Bridging The Gap in Diversity
Success Story – Retail Business THE BUSINESS A well established retail business located in Tasmania operating for over 16 years. The business had experienced a reduction in sales due to a competitor commencing business in the region coupled with the director sustaining a lifestyle using company funds instead of addressing tax debt. THE SOLUTION Hamilton Calvert Advisory worked with the director to establish change in business practices, long term viability of the business and assisted with the creation of a repayment proposal to creditors. We worked closely with the ATO (major creditor) to negotiate any potential issues with the restructuring proposal, which was ultimately accepted. Within 3 weeks of the plan being approved, creditors received a dividend of 22c/$ and the business reduced its unsecured debt by $330,185 (45%). As a result of a change in business practices and the small business restructure process the company is now operating successfully. COMPANY FINANCIAL PROFILE PRIOR TO RESTRUCTURE ATO debt $723,808 Director had received Director Penalty Notices for unpaid SGC superannuation and PAYG withholding tax - $228,166 (personally liable) ATO had commenced proceedings to wind up the company, but had not filed with the Court at the time of our appointment COMPANY PROFILE AFTER SBR RESTRUCTURE Restructure Plan accepted by creditors Director paid Director Penalty Notices - $228,166 (from sale of property) – outside of SBR plan Director contributed $165,457 for SBR proposal SBR dividend 22c/$ Debt reduced by $330,185 (45%) Improved wellbeing of director Employee job security DEBT PERMANENTLY WRITTEN OFF = 45%
What happens to my superannuation if I become bankrupt? As bankruptcy will result in available assets being realised it is important to consider the status of your superannuation balances. Superannuation is not a personal asset and is held on trust for you and governed by superannuation law and for this reason it is not available to your trustee but is also protected by section 116(2)(d) of the Bankruptcy Act 1966 . It is important that you do not withdraw superannuation as a lump sum during bankruptcy as it would become a personal asset and available to your estate. If you entered into pension phase during bankruptcy, then the annual payment would be assessed as part of your income and you may be required to make a contribution to your estate. Can I have a self-managed super fund during bankruptcy? Once you become bankrupt you can no longer be trustee of your own super fund, if you are a director of a company that is trustee of your superfund you can no longer act in that role as a bankrupt cannot be a director of a company. If you have a self-managed superfund you should speak to your financial advisor prior to becoming bankrupt so proper planning can be put in place in order for your superannuation to remain protected. Does bankruptcy affect any life insurance? Section 116(2)(d) of the Bankruptcy Act 1966 provides that policies of life insurance held by the bankrupt and/or their spouse or de facto partner are exempt property where the proceeds of such policies are received on or after the date of bankruptcy and become protected money. This can also extend to property purchased with protected money so it remains unavailable to a bankruptcy trustee to realise. Protection will only be available on or after the date of bankruptcy - not before. If insurance proceeds or superannuation is received before bankruptcy and placed in a bank account or used to purchase real estate it is not afforded the protection of being exempt property and will be available to creditors. Please do not hesitate to contact our firm for a free, initial confidential consultation to discuss your options available.