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

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When it comes to Bankruptcy in Tweed Coast, typically people aren’t aware that there could be both voluntary, and involuntary insolvency– and this is important because sometimes a lot of people don’t become aware that others can declare them bankrupt– and that if this occurs you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs 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, usually when you obtain one of these kinds of notices, you have 21 days to pay all the debt. If you don’t, then the creditor goes back 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 short window where you can argue and put your case forward concerning why it should not proceed 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 experiencing the same procedures as individuals who took that path voluntarily.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of much more tension, worry and concern as other people are taking control of your entire life. My most important advice with Bankruptcy and involuntary bankruptcy is that if you believe that it could occur, get specialist recommendations 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 imagine that it is much better to know what you can and can’t do before being pushed into that situation. The moment you are bankrupt, it’s normally far too late to act.

What next?

Well if you have been declared bankrupt, you won’t really have many options but to move through the experience and you will definitely want to get competent suggestions to make sure you are declaring properly, not breaking any regulations, and will have the bankruptcy discharged as quickly as achievable.

Fortunately is that in Australia the arrangements for bankruptcy are actually really generous: you can declare bankruptcy owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared with countries 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 prison. Nowadays I presume the government thinks that the faster it can get you back on your feet working and paying off tax obligations, the better. It makes much more sense than locking you up which costs the taxpayer regardless.

Going bankrupt will clear away the huge bulk of your various debts, (including tax debts to the ATO) but remember the few exceptions- 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 much more that could be said about this and Bankruptcy as a whole so if obtaining some advice, remember that there are often alternatives when it involves Bankruptcy in Tweed Coast, so do some research, and good luck!

If you want to learn more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to get in touch with Bankruptcy Experts Tweed Coast on 1300 795 575, or visit our website: Bankruptcy Tweedcoast