When it concerns Bankruptcy, there are 2 kinds of individuals– those who have made a decision to declare bankruptcy and those individuals declared insolvent by others (Their creditors).
When it comes to Bankruptcy in Coffs Harbour, typically individuals aren’t aware that there could be both voluntary, and involuntary insolvency– and this is crucial because at times individuals don’t realise that others can declare them bankrupt– and also if this develops you have certain rights and’ obligations attached.
Involuntary bankruptcy takes place when an individual you owe money to calls for the court to declare you bankrupt. This will lead to you being issued with a notice that, generally when you obtain one of these sorts 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 declares you bankrupt. During the course of this time you are going to have a brief window wherein you can argue and put your case forward as to exactly why it ought to not proceed to the next degree and why you ought to not be declared bankrupt. Once the determination has been made, you will be bankrupt and experiencing the same measures as individuals who took that path freely.
Having said that, 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 most important suggestion with Bankruptcy and involuntary bankruptcy is that if you feel that it might happen, get expert advice on bankruptcy as early as feasible, even if you are just stressed over debt and fear that it might continue to escalate. I am sure that you can picture that it is much better to know what you can and can’t do before being forced into that situation. The moment you are insolvent, it’s generally far too late to take action.
Well if you have been declared insolvent, you will not really have numerous options but to move through the process and you will certainly want to get specialist recommendations to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as early as feasible.
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 completed with no strings attached. Compared with nations like the United States, our bankruptcy laws are quite good.
I don’t claim to know why that is, but a couple of hundred years ago debtors went to jail. Nowadays I suppose the government thinks that the quicker 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.
Insolvency will wipe away the huge bulk of your several debts, (including tax debts to the ATO) but remember 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 far more that could be stated about this and Bankruptcy generally so when getting some guidance, bear in mind that there are often alternatives when it includes Bankruptcy in Coffs Harbour, so do some groundwork, and good luck!
If you want 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 contact with Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website: www.bankruptcyexpertscoffsharbour.com.au.