I think that one of them again using a pre-insolvency professional one of the best things that I’ve got for you is that they support you and it’s all this fear of the unknown that I find that the people that are going through financial stress I’ve gone bankrupt and while they can work through it financially and they can work through it with their family and the mental health things associated with that it’s that fear of the unknown what happens.
One of the things I see time and time again is that there are many successful businesses out there waiting to happen and what’s stopping them is a little thing more often than not it’s having a system I see businesses quite often that are going from crisis to crisis.
Talking on trustees and liquidators over the years I’ve found that the most important thing is to have a trustee or a liquidator you can work with and there are many extremes should they all do the same job should they all follow the same coin, yes and they do.
Because I see where clients go in to sit down with solicitors and solicitors sit there and I’ve got the problem and that purely looking at the legal perspective and they say about all the problems but they forget to say that there’s a lot of water to go under the bridge before you’re sitting before a magistrate or a judge and they’re making a determination on your issue
Some people may say that it’s over-the-top my first question would be to think of Margaret Thatcher and when she said she was axed well people say this about you and she says who was a very famous saying whom what where you know these some people that say that it’s not over the top and the reason it’s not over.
The term Phoenix is actually comes from the bird of Phoenix whose rises from the ashes now again as I’ve previously said there’s nothing wrong with rising from the ashes and starting again where the loss is that you shouldn’t take assets from this identity and transfer them to this identity without commercial market valuation so if you’ve got a coffee making machine and it’s in this business and this business starts up and the coffee making machines worth $5,000 and this business pays $5,000 for the coffee making machine to this one and it transfers over that’s fine that’s where you transfer it over for a dollar and one of the things that Liquidators look at is was that their commercial value to swap it over and so that the $5,000 becomes available to all the creditors not just select rent and as all were creditors in this business.
What happened with the financial services that was all about how people have been affected by the decisions and the policies of the staff and people every day are affected by the staff and the influences of the insolvency industry and it is in a stressful situation whereas many of the practices that were involved with the banking things were poor procedures whereas in the insolvency industry because there’s this basic flaw in it that the trustees and the liquidators who owned the business were involved in the business also affects the money that they get in their hip hip pocket they make the decisions based on that and this floor is the one that’s not addressed anywhere and so what happens when someone is in financial stress either going bankrupt or their business is closed down.
The Loophole really comes about, is that these people spend all their life working and you know I’ve got numerous of examples of what the typical example is this actually a teacher or an employee, I guess in the government sector that’s worked for a long time and I’ve got some superannuation they take early retirement and they go and they buy a franchise; with the money and there are many examples of it.
So the reason we need to have a royal commission is that all these things can come out. What’s at all of the restrictions on the wire table and the intimidation tactics that are used and you’ve got trustees, where the 80% of banks insolvency work in Melbourne goes to one trustee. Now if we’re looking at fairness, what chances that trustee got of being independent? If so much of history at work has relied on this one creditor, so if this one creditor want something done; Is he impartial in helping the bankrupt and work through the issues? No, he goes after the bankrupt.