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We have a small business that went bust on the 1st March.

We have a small...

We have a small business that went bust on the 1st March. Since then we have a number of people chasing us for money we don't have

Lawyer's Assistant: What state/territory are you in? It matters because laws vary by location.

NSW

Lawyer's Assistant: What steps have you taken so far?

So we have applied for hardship on a personal loan for $55,000. And ask our bank to let us try to get up to date with arrears using our super. ANZ have given us till the 30th June to get our arrears of $100,000 up to date, we have $70,000 left to go. I also asked Citibank to stop the interest on my credit card which is now a closed account worth $18500. They said no to stopping the interest. Instead of dealing with everyone separately, can they all be put together?

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Most seem to be sending letters telling us they are going to take our house. One placed a caveat on our house. We dont want to sell our house but if we do, we would be debt free

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Answered in 5 minutes by:
4/24/2018
John Melis
John Melis, Lawyer
Category: Australia Law
Satisfied Customers: 3,543
Experience: Principal Lawyer at Legal AU Pty Ltd
Verified

Hi, my name is***** solicitor in Melbourne. Thank you for using Just Answer, and I will answer your question today, and ask various questions to narrow the issues in your post raised.

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Have you considered debt arrangements yet ?

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In relation to your important matter, you have numerous debts that are outstanding.

If the business you closed down was a Pty Ltd, then the creditors cannot chase you personally, they need to chase the company, which as directors you can put the company into liquidation and then no one gets paid and you are covered from claims of the creditors.

If you are trading in your own names, the important aspect to to enter into a debt arrangement with each creditor to avoid them filing for bankruptcy proceedings against you.

In relation to the house, unless there is a written contract that permits a person to lodge a caveat against the property, then a person who does file a application with the titles office to lodge a caveat against the property of your home is carrying out an illegal act, and you can sue them for an damage that it causes to you, in the event that you have to sell your house, and you cannot because of the caveat.

No one can lodge a caveat unless they have an actual interest in the land/property.

I recommend avoiding the bankruptcy option as to here are to many implications involved in the long term.

Personal bankruptcy is not often talked about, because it is one of those topics that people do not want to associate themselves with when a particular individual has become bankrupt. People can be vicious, and sometimes bankruptcy is not the fault of the person and others do not see it that way.

So what are the impacts on a person when they are bankrupt?

Bankruptcy can be a lengthy process for an individual, and can continue well after the three year period on which a bankruptcy may be discharged against that person.

When a person is made bankrupt the impact on that individual can be long lasting with the loss of face from family, friends and the business community. There is a mark of failure branded on the individual or humiliating character if the person cannot arise above the stigma that is upon them because of the bankruptcy. It often occurs that society will shun a bankrupt as a criminal, when in fact some circumstances they are not.

However, the blame for losses will eventually lay upon the bankrupt. Someone has to take the ‘fall’ for the decisions that were made, whether right or wrong.

The bankrupt has a number of important rules to follow. The bankrupt must attend meetings of creditors as the trustee requires. The bankrupt will be questioned in detail, which may be demeaning for the bankrupt. The bankrupt has to answer questions, disclose property, financial dealings, which may include with other people, companies, partnerships and entities.

The trustee will investigate the conduct of the bankrupt, accounts, and all other examinable affairs. The bankrupt will be required to deliver records and information as needed by the trustee. The bankrupt has to allow the trustee reasonable access to their premises and records. If the bankrupt fails to comply with the administration requirements of the bankruptcy process, the trustee may seek assistance from the court that the bankrupt be examined by the court, and other orders placed on the bankrupt to comply with the orders of the trustee.

If the bankrupt fails or refuses to comply with an order from the court, the bankrupt may be arrested and jailed if insufficient reason is provided by the bankrupt for failing to comply with an order.

If the bankrupt changes their name or address they need to notify the trustee and failure of is an offence, and may result in an objection to the discharge of the bankrupt when that time occurs.

When a bankrupt is working and their income reaches a certain threshold, the trustee may require the bankrupt to make contributions from their income under the direction of the trustee. Where the bankrupt fails to comply with the trustee direction, an automatic discharge from bankruptcy may be stopped.

Where a bankrupt has other accounts with banks or other financial institutions in Australia, the bankrupt cannot remove funds from those accounts, and those financial institutions that hold those funds are not permitted to allow payments out of those accounts unless authorised by the trustee. Then where money of the bankrupt is insecure, a freezing order may be applied against the account by the trustee through obtaining an order of the court.

The bankrupt cannot travel outside Australia unless consent is provided by the trustee, and the bankrupt must surrender their passport to the trustee. If the bankrupt leaves Australia without consent, an offence will have been committed by the bankrupt.

When a bankrupt seeks credit of over $5,447.00 which is indexed per year, the bankrupt is required to disclose to that party they are an undischarged bankrupt. This disclosure may result in the bankrupt not being able to carrying on a business if they are required to obtain credit in some form.

A bankrupt is prohibited from managing a corporation or being part of its management. Then if a bankrupt works in certain professional trades, such as a lawyer, accountant, veterinarian, builder, real estate agent, they will suffer working restrictions. The number of professions that are affected by bankruptcy order is extensive.

If prior to bankruptcy the person was a trustee of a self-managed super fund, and that person is made bankrupt, they can no longer be a trustee of the self-manage super fund.

There are many significant impacts on a bankrupt, and if there are alternative options to avoid bankruptcy they should be considered. For as once you have been made bankrupt the effects will be long lasting.

I recommend that considering a debt arrangement plan is the way to proceed to avoid bankruptcy.

Would you like to consider this option.

You have a legal right to protect your interests in this important situation.

If you need any further information let me know and I will be pleased to assist.

You can come back to this post any time to ask questions and there will be no further charges to you.

Don’t forget to rate me 5 stars as this supports me helping the community, and your important questions.

Have I answered your question today ?

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Customer reply replied 3 months ago
The Prospa loan worth $55,000 has put a caveat on the house. Claiming that although the loan was for the business titles meamm pty Ltd, Michael one of two titles on the house were guarantor.
I am asking them to take the caveat off. They said they wont be until it is repaid. What can I do about getting it off?
Customer reply replied 3 months ago
Also how can I get the ANZ bank to let me access my Super to get up to date on the arrears and let me keep the house pass the 30th June

You will be able to get the caveat off the title.

You will need a lawyers letter to be issued

Would you like to consider that point ?

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Customer reply replied 3 months ago
I would like to get it off

In relation to ANZ have you asked for emergency relief yet ?

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Customer reply replied 3 months ago
I dont know what that is.We applied to access our Super by contacting Centrelink and making a claim for our super. Centrelink said that they will need a letter from ANZ saying that we can use our Super to get up to date with them. ANZ said no.

With ANZ they have a special application process which you need to comply with to seek relief from them to access your super. There is no guarantee as that take each case on a case by case approach, but it is worth a try.

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Customer reply replied 3 months ago
I added some attachments

would you like to have a talk by phone ?

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I have looked at the caveat lodgement notice you uploaded.

As explained above the party that has lodged the caveat has no grounds to do so.

You can either have lawyer to to act on your behalf to inform that party the caveat has been wrongly lodged and that if the caveat is not removed you will seek damages against that party.

Or

You can contact the titles office and raise a inquiry in relation to the caveat that has been lodged and request that the caveat be removed. This is a longer process but can also achieve a positive outcome for you.

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Customer reply replied 3 months ago
How much would you charge to write the letter?

All law forms charge different but it should only be a small amount.

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Customer reply replied 3 months ago
Can you do one for me today?

These services would need to requested from law firm directly

If you like we can have a chat on the phone how to prepare for that process.

John Melis
John Melis, Lawyer
Category: Australia Law
Satisfied Customers: 3,543
Experience: Principal Lawyer at Legal AU Pty Ltd
Verified
John Melis and 87 other Australia Law Specialists are ready to help you
Ask your own question now
Customer reply replied 3 months ago
Phone number(###) ###-####

I will call you in 15 minutes

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Customer reply replied 3 months ago
In the prospa contract it states that they could put a caveat on the house. That we gave them permission to

ok

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The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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