Bankruptcy in Wyong– Voluntary or involuntary bankruptcy?

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Bankruptcy in Wyong– Voluntary or involuntary bankruptcy?

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

When it comes to Bankruptcy in Wyong, normally people aren’t aware that there is both voluntary, and involuntary insolvency– and this is crucial because sometimes a lot of people don’t become aware that others can declare them bankrupt– and that if this happens you have certain rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when an individual you owe money to involves the court to declare you bankrupt. This will result in you being given with a notice that, usually when you obtain one of these sorts 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 bankrupt. During this time you are going to have a short window where you can dispute and put your case forward concerning the reason why it really should not proceed to the next degree and why you should not be declared insolvent. But once the determination has been made, you will be insolvent and going through the same actions as those who took that path voluntarily.

However, when it concerns Bankruptcy you can picture that the involuntary procedure is full of far more stress and anxiety, worry and fear since other people are taking control of your way of life. My biggest tip with Bankruptcy and involuntary bankruptcy is that if you feel that it might happen, get professional advice on bankruptcy as early as possible, even if you are just worried about bills and fear that it might continue to escalate. I am sure that you can visualize that it is far better to know what you can and can’t do before being pushed into that situation. The moment you are bankrupt, it’s usually far too late to take action.

What next?

Well if you have been declared bankrupt, you will not really have many alternatives but to move through the process and you will definitely want to get competent guidance to make sure you are declaring correctly, not breaking any regulations, and will have the bankruptcy discharged as quickly as achievable.

The good news is that in Australia the arrangements for bankruptcy are really quite generous: you can go bankrupt 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 quite good.

I don’t pretend to know why that is, but a couple of hundred years ago debtors went to jail. These days I presume the government finds that the faster 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 wipe away the huge bulk of your various financial obligations, (including tax debts to the ATO) but always 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 covered.

There is a lot more that can be explained about this and Bankruptcy in general so when getting some advice, remember that there are often choices when it includes Bankruptcy in Wyong, so do some research, and good luck!

If you wish to learn more about exactly what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to get in touch with Bankruptcy Experts Wyong on 1300 795 575, or visit our website: www.bankruptcyexpertswyong.com.au.

By | 2018-07-06T05:20:37+00:00 October 18th, 2016|Bankrupt, Blog|0 Comments

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