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

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When it comes to Bankruptcy in Hervey Bay, normally lots of people aren’t conscious that there could be both voluntary, and involuntary bankruptcy– and this is very important because in some cases people don’t understand that others can declare them bankrupt– and that if this occurs you have particular rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs 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, usually when you get one of these types of notices, you have 21 days to pay all the financial debt. If you don’t, then the creditor returns to the court and asks the court to supply a sequestration order that declares you insolvent. 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 why it ought to not progress to the next degree and the reason why you ought to not be declared bankrupt. Once the decision has been made, you will be bankrupt and going through the same procedures as people who took that path voluntarily.

However, when it concerns Bankruptcy you can picture that the involuntary procedure is full of even more strain, worry and fear as other people are taking control of your entire life. My most important tip with Bankruptcy and involuntary bankruptcy is that if you think that it may take place, get qualified advice on bankruptcy as soon as possible, even if you are just worried about financial debt and fear that it could continue to escalate. I am sure that you can visualize that it is better to realise what you can and can’t do before being pushed into that predicament. Once you are bankrupt, it’s ordinarily far too late to act.

What next?

Well if you have been declared bankrupt, you won’t really have many alternatives but to move through the experience and you will definitely want to get competent recommendations to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as early as feasible.

The bright side is that in Australia the arrangements for bankruptcy are really generous: you can 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 quite good.

I don’t claim to know why that is, but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government thinks that the quicker it can get you back on your feet working and paying off tax obligations, the better. It makes more sense than locking you up which costs the taxpayer regardless.

Going bankrupt will wipe away the huge bulk of your several debts, (including tax debts to the ATO) but bear in mind the few exceptions- 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 insured.

There is much more that could be stated about this and Bankruptcy as a whole so if obtaining some advice, remember that there are always options when it involves Bankruptcy in Hervey Bay, so do some research, and good luck!

If you want 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 contact with Bankruptcy Experts Hervey Bay on 1300 795 575, or visit our website: www.bankruptcyexpertsherveybay.com.au.