When it comes to Bankruptcy, there are 2 types of individuals– people who have chosen to declare bankruptcy and people declared bankrupt by others (Their creditors).
When it comes to Bankruptcy in Emerald, typically individuals aren’t conscious that there can be both voluntary, and involuntary bankruptcy– and this is crucial because often people don’t become aware that others can declare them bankrupt– and that if this occurs you have particular rights and’ responsibilities attached.
Involuntary bankruptcy happens when an individual you owe money to involves the court to declare you insolvent. This will lead to you being given with a notice that, typically when you obtain one of these types of notices, you have 21 days to pay all the debt. If you do not, then the creditor goes back to the court and asks the court to supply a sequestration order that proclaims you insolvent. Throughout this time you are going to have a short window in which you can argue and put your case forward as to why it really should not progress to the next level and the reason why you ought to not be declared insolvent. Once the decision has been made, you will be bankrupt and experiencing the same actions as people who took that path willingly.
However, when it concerns Bankruptcy you can imagine that the involuntary process is full of much more stress and anxiety, worry and fear because other people are taking control of your way of life. My most important tip with Bankruptcy and involuntary bankruptcy is that if you believe that it might take place, get expert guidance on bankruptcy as early as feasible, even if you are just stressed over bills and fear that it might continue to escalate. I am sure that you can envision that it is much better to understand what you can and can’t do before getting forced into that circumstance. The moment you are insolvent, it’s ordinarily far too late to take steps.
Well if you have been declared bankrupt, you will not really have many choices but to move through the experience and you will definitely want to get specialist recommendations to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as quickly as possible.
The good news is that in Australia the arrangements for bankruptcy are really generous: you can easily declare bankruptcy owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared to countries like the United States, our insolvency laws are quite good.
I do not claim to understand why that is, but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government believes that the quicker 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 anyway.
Going bankrupt will clear away the vast majority of your different financial obligations, (including tax debts to the ATO) but bear in mind the few exemptions- the primary 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 covered.
There is a lot more that can be stated about this and Bankruptcy as a whole so when getting some advice, remember that there are always choices when it includes Bankruptcy in Emerald, so do some groundwork, and good luck!
If you wish to find out more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then don’t hold off to get in contact with Bankruptcy Experts Emerald on 1300 795 575, or visit our website: www.bankruptcyexpertsemerald.com.au.