Beyond Debt
Thousands of Sole Traders will have no choice but to file for Bankruptcy, according to Beyond Debt’s Ben Paris. The government thresholds for Debt Agreements, an alternative to Bankruptcy, are too low at $118,063.40 and the three years term too short to assist many. There are 912,411 Sole Traders, the most common business structure in Australia, employing just under 5 million Aussies.
Debt Agreement Administrators are expecting a tsunami of insolvent Sole Traders in the coming months now job keeper has been turned off. Members are already receiving calls from Sole Traders they can’t assist because they owe too much or can’t afford enough to make a 3-year arrangement with creditors.