If you are like the many who have been struggling with debts and were thankful for the relief given by the government. This news is not good (make sure you are sitting down).
All government relief will end on the 1st January 2021. This will mean that debt collectors will begin knocking on the door and chasing you for outstanding debts.
Act now to speak with a Debt Solutions expert to find out what your options are. Doing nothing will not change the situation and you will feel like running a marathon without a finishing line.
It’s time to act and get rid of the stress that debt brings. Armada provide a FREE ASSESSMENT for all people who reach out to Armada. This is for both personal and corporate debts.
Below is the official statement from the Australian Financial Security Authority (AFSA).
Temporary debt relief measures will be wound back on 1 January 2021
In March 2020, the Australian Government announced a series of changes to bankruptcy law, as part of the wider economic response to the COVID-19 pandemic.
The temporary changes included:
As of 1 January 2021, those temporary changes will cease. An amendment has also been made to adjust the bankruptcy threshold. This means:
Before the temporary changes were implemented in response to the COVID-19 pandemic, the minimum amount of debt that could trigger a bankruptcy was $5,000.
The government has amended the bankruptcy regulations to adjust the threshold for petitioning bankruptcy to $10,000 or more.
– Ends –
What to do? – If this sounds like you or someone you know, speak with a debt solutions expert as soon as you think you may need to get a payday loan. There are many formal and informal debt solutions available to everyone, especially if you are struggling and are feeling that your head is just above water.
THE FINAL WORD – At Armada we are proud of what we do. We are a family business and built on family values. We will give you the honest solution, even if it isn’t what you want to hear. We do that because we know what you are going through and we know how good your life will be after the debt solution is in place.
Armada offer a FREE ASSESSMENT to every client. This is done with NO OBLIGATION. If you want to get a FREE assessment  click here and one of team will be in touch for a chat. It’s that simple.
In the office we have recently spoken to many potential clients who are reluctant to go into a debt solutions as they feel a duty to ‘do the right thing’ by their creditors (people they owe money to).
The Armada team spend a lot of time trying to make our clients understand that the most important person in debt issues is you and your family, not the creditor. We know that if you could afford to pay the debt off, you would. However now more than ever, situations have changed. Jobs have been lost, we have gone into recession and Australia has changed. This is not your fault.
The point I want to make is that Payday lenders are big business, no matter how caring they seem. I would like to direct you to the following information that was brought to our attention by Channel 9.
“A pay day lender is in hot water with the corporate regulator after allegedly raking in $78 million in fees from customers.
Cigno Loans allows customers to borrow up to $1000 with most signing up online and being approved within minutes.
But the fees charged are allegedly huge, with some customers claiming they have paid back nearly 1000 per cent on their loans.
Tikyah Amber Boyce borrowed $175. She claims she was told she’d end up paying back around $300. Now she owes more than $1000.
Ms Boyce told A Current Affair she set up automatic payments of $94 a week; but on the fourth transaction they took double.
“I noticed they took $188, which was definitely not the $94 they said they’d be taking out,” she said.
Ms Boyce thought she’d paid back the loan and stopped hearing from the company, until debt collectors started calling three months later saying she now owed $1135.
The huge amount was made up of weekly account keeping fees of $5.95 and $79 default fees.
“I was a bit shocked. Unemployed, living with my family it didn’t cross my mind how I was going to get the money to pay it back,” she said.
Alisha Hayden also used Cigno Loans when her dog was rushed to the vet and she needed cash fast.
She secured a $500 loan thinking she would pay back around $850. She too realised Cigno had taken extra payments.
“I said ‘can someone explain to me what’s going on, I’ve paid back $1200 so far and you’re still taking payments out’,” Ms Hayden said.
She claims the company then told her she owed a further $500 in default and account keeping fees.
When she told the company she wouldn’t be paying it, she claims they made an offer for her to pay just over $200 for the matter to be finalised.Â
All up she paid more than $1400 on a $500 loan.
Cigno Loans is no stranger to controversy.
Last year ASIC went after the company, lodging a product intervention order.”
Many people think that these type of loans will be used to pay back debts by consolidating their debts into one affordable payment. The problem is that it turns into not being AFFORDABLE very quickly, which is where the problems starts. Another thing, which all debt solutions experts know, is that if you have a payday lender (Short term / High interest) loan, most big bank lenders will not offer you finance.
What to do? – If this sounds like you or someone you know, speak with a debt solutions expert as soon as you think you may need to get a payday loan. There are many formal and informal debt solutions available to everyone, especially if you are struggling and are feeling that your head is just above water.
THE FINAL WORD – At Armada we are proud of what we do. We are a family business and built on family values. We will give you the honest solution, even if it isn’t what you want to hear. We do that because we know what you are going through and we know how good your life will be after the debt solution is in place.
Armada offer a FREE ASSESSMENT to every client. This is done with NO OBLIGATION. If you want to get a FREE assessment  click here and one of team will be in touch for a chat. It’s that simple.
The Morrison Government will undertake the most significant reforms to Australia’s insolvency framework in 30 years as part of our economic recovery plan to keep businesses in business and Australians in jobs.
The reforms, which draw on key features from Chapter 11 of the Bankruptcy Code in the United States, will help more small businesses restructure and survive the economic impact of COVID-19. As the economy continues to recover, it will be critical that distressed businesses have the necessary flexibility to either restructure or to wind down their operations in an orderly manner.
Key elements of the reforms include:
This means: If you have debts less than $1million you are eligible to enter into this new insolvency structure.
This means: As a business owner you will still remain in possession or control of your business while you work with the practitioner to assess and design a possible solution. You can continue to trade, keep the doors open and employee staff.
This means: You will have 20 days from appointing a practitioner to work together on a suitable plan to present back to the people you owe money to (creditors).Â
The reforms will cover around 76Â % of businesses subject to insolvencies today, 98Â % of whom who have less than 20 employees.
Together, these measures will reposition our insolvency system to reduce costs for small businesses, reduce the time they spend during the insolvency process, ensure greater economic dynamism, and ultimately help more small businesses get to the other side of the crisis.
On 22 March 2020, the Government announced temporary regulatory measures to help financially distressed businesses get to the other side of COVID-19. On 7 September 2020 the Government announced a further extension of this relief to 31 December 2020. The new processes will be available for small businesses from 1 January 2021.
This reform is brand new and the government are writing the legal framework as we speak. You still need to be confident in making profit over a period of time in order to satisfy your creditors. Armada and their trusted partners can point you in the right direction.
Lots of businesses are struggling because of COVID. You’re not on your own. We’re all not sure what the future holds but this is a positive direction by the government as they try to assist businesses who have stopped or reduced trade because of COVID.
This not a “one size fits all’ solution. You need to be up to date with ATO and employee entitlements to access this specific solution.
This is why you must go to an expert who can assist you in getting everything in place to get the best outcome for you and your business. Armada offer a FREE ASSESSMENT for all enquiries. This way you have nothing lose and everything to gain. Doing nothing in not an option and having an exit strategy and a direction can be the end to the months of worry and sleepless nights.
Armada are here and available to talk. Armada can walk you through a FREE ASSESSMENT to see what is best for you. Just  click here  to learn more and have an Armada team member contact you for a quick chat.
It has been stated in many publications that the Australian Tax Office (ATO) is currently owed approximately $20 billion – This is not a typo, that is “billion” with a “B”.
If you have a ATO (Australian Tax Office) debt less than $100k then you may have been advised or you may think that the ATO will not chase you. This unfortunately, does happen and could have massive repercussions to you in the future.
We are either currently in or just getting out of an unprecedented time in COVID and things are changing….fast. The Australian Government have been providing stimulus to the public to try to keep the economy going and keep food on the table.
You would think this has left a massive hole in the government’s budget. in addition, it wouldn’t be hard to think that the government may need to get this money back in some way.
The government must be thinking on ways to get this money back as quick as possible. It may not be a surprise that the quickest way could be via the reported $20 BILLION owed in possible ATO debt (please note that this may be an approx amount and not the actual amount).
During the Global Financial Crisis (GFC) the ATO seemed to be quite easy-going on small outstanding tax debts and encouraged taxpayers and small businesses to enter payment plans to pay off their outstanding tax debt. This is the same for the period we are experiencing via COVID.
The easy-going approach appears to have been taken advantage of by numerous taxpayers and small businesses. Currently, there is legislation in place to protect people who owe tax debt during COVID. This will have a time limit (currently 31st Dec 2020) and It could be expected that the ATO will start a plan to recover outstanding TAX debts when these limits end (Jan 2021). It may prolong the situation but may not necessarily change it. You will still owe the debt and need help and in a way, this could be a good thing. It gives you the time to get the advice you need and be prepared.
Engage with us early so we can help you deal with your debt while it’s still manageable. We have a number of tools and services available to support you to address your bill while it’s still manageable
We’re committed to listening to your situation and helping you get back on track.
If you don’t pay the amounts you owe the ATO on time:
Make sure you lodge your activity statements and tax returns on time even if you can’t pay by the due date. You’ll avoid a penalty for failing to lodge on time and we’ll know you’re aware of those obligations.
Stronger action includes:
In some cases the ATO may take legal action to recover outstanding tax and super debts. The action we take depends on whether an individual (or sole trader), partnership, trust, superannuation fund or company owes the debt and may include:
Winding up is usually used as a last resort by the ATO, with it generally attempting to recover unpaid tax via payment plans, director penalty notices (which makes the director personally responsible for the debt) or garnishee notices first.
However, this seems that it may not be working. The ATO can be a very hard creditor.
In a recent speech, the Commissioner of Taxation, Chris Jordan stated “We are dealing with people who are not doing the right thing or paying the right amount. We will be taking legal action earlier when warranted. This means initiating winding up action where there is evidence of insolvency.”
We have definitely seen increased debt recovery action by the ATO in the last few months. Mostly outstanding debt notices and phone calls. But where these notices and phone calls result in no payment or communication by the taxpayer or small business, the ATO have advised they will proceed to the next step and initiate legal proceedings, which can include winding up.
DO YOU HAVE A TAX DEBT?
Please talk to Armada Advisory if you have any outstanding business tax or have been issued a director penalty notice, before the ATO takes action. Acting before the ATO do will provide you with more options for a solution. Act today, not tomorrow. Just be committed to change and Armada can do the rest.
If this is all just to much then speak to an expert. Armada Advisory have an expert team to listen to your situation and circumstance and work with you to find out what solutions you are eligible for.
Armada conduct a free financial assessment for all people who make contact. Debt solutions are not a one size that fits all, this is why it is important to speak with an expert to understand the potential solutions you could be working towards.
Armada Advisory agents have all been in debt and they understand the struggles you are going through. We’re not a sales engine, we’re here for you. Based on the information give to the Armada agent, you will be presented with suitable solutions.
It is YOUR choice which way to go. Armada’s aim is to take the stress and pressure away with debt consolidation. Armada just need you to be committed to the process, committed to change, they will do the rest.
Click the link to book in with Armada Advisory and get your free assessment and speak with an expert.
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