When it involves 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 Northern Rivers, typically people aren’t aware that there can be both voluntary, and involuntary bankruptcy– and this is important because in some cases a lot of people don’t know that others can declare them insolvent– and that if this develops you have certain rights and’ responsibilities attached.
Involuntary bankruptcy takes place when a person you owe money to involves the court to declare you insolvent. This will result in you being issued with a notice that, typically when you get 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 provide a sequestration order that proclaims you insolvent. Throughout this time you will have a brief window in which you can dispute and put your case forward as to exactly why it should not proceed to the next level and the reason why you should not be declared bankrupt. But once the decision has been made, you will be bankrupt and going through the same actions as people who took that path voluntarily.
Having said that, when it concerns Bankruptcy you can imagine that the involuntary process is full of far more stress, worry and fear since other people are taking control of your entire life. My biggest suggestion with Bankruptcy and involuntary bankruptcy is that if you think that it could take place, get expert guidance on bankruptcy as quickly 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 picture that it is much better to recognize what you can and can’t do before being pushed into that predicament. The moment you are bankrupt, it’s normally far too late to take steps.
Well if you have been declared bankrupt, you won’t really have too many options but to move through the process and you will want to get specialist suggestions to make sure you are declaring properly, not breaking any regulations, and will have the bankruptcy discharged as soon as achievable.
Fortunately is that in Australia the arrangements for bankruptcy are actually very 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 do not claim to know why that is, but a couple of hundred years ago debtors went to jail. Nowadays I presume the government thinks that the faster 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 in any case.
Going bankrupt will wipe away the huge majority of your different debts, (including tax debts to the ATO) but keep 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 covered.
There is a lot more that can be explained about this and Bankruptcy in general so if obtaining some guidance, bear in mind that there are always options when it involves Bankruptcy in Northern Rivers, so do some groundwork, 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 Northern Rovers on 1300 795 575, or visit our website: www.bankruptcyexpertsnorthernrivers.com.au.