Bankruptcy in Tablelands– Voluntary or involuntary bankruptcy?

Bankruptcy in Tablelands– Voluntary or involuntary bankruptcy?

When it comes to Bankruptcy, there are 2 sorts of individuals– those who have made a decision to declare bankruptcy and those individuals declared bankrupt by others (Their creditors).

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When it comes to Bankruptcy in Tablelands, typically lots of people aren’t aware that there can be both voluntary, and involuntary bankruptcy– and this is crucial because in some cases a lot of people don’t realize that others can declare them insolvent– and that if this develops you have particular rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when an individual you owe money to calls for the court to declare you insolvent. This will result in you being issued with a notice that, normally when you get one of these kinds of notices, you have 21 days to pay all the debt. If you don’t, then the creditor returns to the court and asks the court to provide a sequestration order that declares you insolvent. Throughout this time you are going to have a short window wherein you can argue and put your case forward concerning the reason why it ought to not proceed to the next degree and why you ought to not be declared insolvent. But once the determination has been made, you will be bankrupt and experiencing the same procedures as people who took that path willingly.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of far more tension, worry and concern since other people are taking control of your life. My biggest suggestion with Bankruptcy and involuntary bankruptcy is that if you feel that it could occur, get professional guidance on bankruptcy as quickly as possible, even if you are just worried about bills and fear that it could continue to escalate. I am sure that you can picture that it is far better to realise what you can and can’t do before being forced into that predicament. Once you are bankrupt, it’s generally far too late to take action.

What next?

Well if you have been declared insolvent, you will not really have numerous choices but to move through the process and you will definitely want to get expert guidance to make sure you are declaring correctly, not breaking any guidelines, and will have the bankruptcy discharged as early as achievable.

The good news is that in Australia the arrangements for bankruptcy are actually quite generous: you could declare bankruptcy owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared with nations like the United States, our bankruptcy laws are quite good.

I do not pretend to know why that is, but a couple of hundred years ago debtors went to jail. In these times I presume the government thinks that the faster it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which costs the taxpayer in any case.

Personal bankruptcy will wipe away the vast bulk of your several financial obligations, (including tax debts to the ATO) but keep in mind the few exemptions- the main ones being Centrelink Debts, Court Fines like parking and speeding fines, HECS or Fee Help loans, and money to pay for a car accident if the car was not insured.

There is far more that can be explained about this and Bankruptcy as a whole so when obtaining some guidance, bear in mind that there are always alternatives when it involves Bankruptcy in Tablelands, so do some research, and good luck!

If you wish to find out more about exactly what to do, where to turn and what questions to ask about Bankruptcy, then don’t hold off to get in touch with Bankruptcy Experts Tablelands on 1300 795 575, or visit our website: www.bankruptcyexpertstablelands.com.au.


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