Bankruptcy in Wangaratta– Voluntary or involuntary bankruptcy?

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Bankruptcy in Wangaratta– Voluntary or involuntary bankruptcy?

When it involves Bankruptcy, there are 2 kinds of people– those who have chosen to declare bankruptcy and those declared bankrupt by others (Their creditors).

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When it comes to Bankruptcy in Wangaratta, normally lots of people aren’t conscious that there could be both voluntary, and involuntary insolvency– and this is very important because sometimes a lot of people don’t become aware that others can declare them insolvent– and also if this develops you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when an individual you owe money to calls for the court to declare you bankrupt. This will result in you being issued 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 returns to the court and asks the court to supply a sequestration order that proclaims you insolvent. During this time you are going to have a brief window wherein you can dispute and put your case forward as to the reason that it really should not progress to the next level and the reason why you ought to not be declared insolvent. But once the decision has been made, you will be insolvent and going through the same measures as people who took that path voluntarily.

Having said that, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of far more stress and anxiety, worry and concern since other people are taking control of your life. My most important tip with Bankruptcy and involuntary bankruptcy is that if you think that it could take place, get specialist recommendations on bankruptcy as quickly as feasible, even if you are just worried about financial debt and fear that it might continue to escalate. I am sure that you can imagine that it is much better to recognize what you can and can’t do before getting pushed into that scenario. The moment you are insolvent, it’s usually far too late to act.

What next?

Well if you have been declared bankrupt, you will not really have numerous options but to move through the process and you will want to get specialist recommendations to make sure you are declaring properly, not breaking any rules, and will have the bankruptcy discharged as early as feasible.

The bright side is that in Australia the arrangements for bankruptcy are really quite generous: you can easily go bankrupt owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared to nations like the United States, our insolvency laws are rather good.

I don’t pretend to understand why that is, but a couple of hundred years ago debtors went to prison. In these times I presume the government believes that the sooner it can get you back on your feet working and paying off tax, the better. It makes more sense than locking you up which costs the taxpayer anyway.

Bankruptcy will wipe away the vast bulk of your different financial obligations, (including tax debts to the ATO) but always remember 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 covered.

There is a lot more that might be stated about this and Bankruptcy generally so if getting some advice, bear in mind that there are often options when it includes Bankruptcy in Wangaratta, so do some research, and good luck!

If you wish to learn more about precisely 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 Wangaratta on 1300 795 575, or visit our website: www.bankruptcyexpertswangaratta.com.au.

By | 2018-07-26T02:55:41+00:00 October 17th, 2016|Bankruptcy, Blog|0 Comments

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