|October 17, 2016||Comments Closed|
When it comes to Bankruptcy, there are 2 kinds of people – those who have chosen to declare bankruptcy and those declared insolvent by others (Their creditors).
When it comes to Bankruptcy in Bendigo, typically individuals aren’t aware that there can be both voluntary, and involuntary bankruptcy– and this is important because at times individuals don’t understand that others can declare them insolvent– and that if this develops you have certain rights and’ obligations attached.
Involuntary bankruptcy takes place when an individual you owe money to involves the court to declare you bankrupt. This will lead to you being given with a notice that, generally when you obtain one of these kinds of notices, you have 21 days to pay all the financial debt. If you do not, then the creditor goes back to the court and asks the court to provide a sequestration order that proclaims you insolvent. During the course of this time you are going to have a brief window where you can dispute and put your case forward as to the reason that it ought to not advance to the next degree and the reason why you should not be declared insolvent. Once the determination has been made, you will be bankrupt and experiencing the same procedures as those who took that path freely.
Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary process is full of even more strain, worry and fear because other people are taking control of your life. My biggest tip with Bankruptcy and involuntary bankruptcy is that if you believe that it could take place, get specialist advice on bankruptcy as quickly as feasible, even if you are just stressed over bills and fear that it might continue to escalate. I am sure that you can picture that it is much better to understand what you can and can’t do before getting forced into that situation. Once you are bankrupt, it’s ordinarily far too late to act.
Well if you have been declared insolvent, you will not really have many choices but to move through the process and you will want to get specialist guidance to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as quickly as achievable.
Fortunately is that in Australia the arrangements for bankruptcy are actually very generous: you can easily declare bankruptcy owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared with countries like the United States, our insolvency laws are rather good.
I do not pretend to know why that is, but a couple of hundred years ago debtors went to prison. These days I suppose the government thinks that the sooner it can get you back on your feet working and paying off income taxes, the better. It makes much more sense than locking you up which costs the taxpayer regardless.
Going bankrupt will clear away the vast majority of your various debts, (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 covered.
There is much more that could be stated about this and Bankruptcy generally so when obtaining some advice, keep in mind that there are often choices when it involves Bankruptcy in Bendigo, so do some research, and good luck!
If you want to find out more about exactly what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hesitate to get in contact with Bankruptcy Experts Bendigo on 1300 818 575, or visit our website: www.bankruptcyexpertsbendigo.com.au.