I am in a desperate financial situation. Help!

Hi Aunty B,

I’m desperate for advice. I’ve had to close my retail shop essentially due to end of lease (I’m in arrears) and a supplier pulling consignment stock a few months out from closing.

I’m left with around two dozen creditors ranging from $500 to $20,000.

I also have rent arrears of $30,000, so the total I owe is around $60,000.

I have no money at all, not even to liquidate. I also have no accountant or lawyer and am totally lost with what to do and where to turn. Apart from the emotional fallout from losing the business I loved, I’m worried for my health as the stress of not knowing where I stand is becoming too much.

Any advice would be so appreciated.

Thanks,
Marc

Dear Marc,

You must face facts. You are in a bad situation. If you can’t pay creditors or enter into an informal arrangement to pay them off over a period of time, then you will need to enter into some form of insolvent administration, eg. liquidation or personal bankruptcy.

You can be proactive and start the process yourself or you can wait until one of your creditors wins a judgement against you and let the court declare you bankrupt and appoint a specialist to wind up your affairs.

Accountant Marc Peskett advises you to contact the Insolvency and Trustees Services Australia, www.itsa.gov.au <https://www.itsa.gov.au> , to get further advice on your options and how the process works. The ITSA is a government body set up to provide advice on these matters. Act now.

Be smart,
Your Aunty B

To read more Aunty B advice, click here.

Email your questions, problems and issues to auntyb@smartcompany.com.au right now!