ATO Debts Becoming Unmanageable? Warning to all ABN holders, your ATO Debts may now affect your credit rating. Beware of ATO Bankruptcy!

There is horrible news for business owners who have an ATO debt as of 1 July 2017. Small businesses should be careful of ATO Bankruptcy since the ATO may reveal details of your tax debts to credit reporting agencies such as Dun & Bradstreet and Veda Advantage. This will make it far more arduous for small businesses to acquire credit, potentially incapacitating them. How could this bear upon 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 overdue debts with the ATO that are greater than $10,000 and are more than 90 days overdue; and.
3. You are not in any kind of payment arrangement with the ATO.

Just so you know, the ATO must first notify you before they broadcast your debt information to any credit agency.

If your ATO debts seem to be getting out of control and you don’t want your credit rating affected then you have at least one usable option: Set up a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.

Conversely, if you feel there is simply no hope or the ATO is threatening legal action against you as a result of your unpaid ATO debts, then bankruptcy may be a realistic option for you. If you would like to know more about ways to get out from under the debilitating burden of personal or business debts, just speak with us here at Bankruptcy Experts Penrith on 1300 795 575 or visit our website for more information: www.bankruptcyexpertspenrith.com.au.