There is horrible news for company owners who have an ATO debt from 1st July 2017. Small businesses will want to be careful of ATO Bankruptcy since the ATO may unveil information of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it much more complicated for small businesses to acquire credit, potentially incapacitating them. How could this affect you? You may be affected if you find yourself in one of the following 3 categories:

 

  1. Have an ABN (i.e. you own a business and/or you are a contractor);.
  2. Have debts with the ATO that are greater than $10,000 and are more than 90 days overdue; and.
  3. You are not in any sort of payment arrangement with the ATO.

 

Just so you’re aware, the ATO must first warn you before they reveal your debt details to any credit agency.

 

If your ATO debts seem to become uncontrollable and you don’t want your credit rating harmed then you have at least one feasible option: Organise a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.

 

Conversely, if you sense there is simply no hope or the ATO is threatening litigation against you because of your unpaid ATO debts, then bankruptcy may be a plausible option for you. If you would like to know more about how you can recover from the debilitating burden of personal or business debts, just phone us here at Bankruptcy Experts Australia on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertsaustralia.com.au.

 

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