When it comes to Bankruptcy, there are 2 sorts of individuals– people who have made a decision to declare bankruptcy and those individuals declared bankrupt by others (Their creditors).
When it comes to Bankruptcy in Geraldton, normally people aren’t aware that there is both voluntary, and involuntary insolvency– and this is crucial because at times a lot of people don’t know that others can declare them bankrupt– and also if this develops you have particular rights and’ obligations attached.
Involuntary bankruptcy takes place when an individual you owe money to involves the court to declare you insolvent. This will result in you being given with a notice that, typically when you get one of these types of notices, you have 21 days to pay all the debt. If you don’t, then the lender returns to the court and asks the court to provide a sequestration order that declares you insolvent. During this time you are going to have a brief window where you can argue and put your case forward as to the reason why it should not progress 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 steps as those who took that path willingly.
However, when it concerns Bankruptcy you can picture that the involuntary procedure is full of much more tension, worry and fear because other people are taking control of your life. My biggest idea with Bankruptcy and involuntary bankruptcy is that if you feel that it might happen, get expert guidance on bankruptcy as quickly as feasible, even if you are just worried about financial debt and fear that it might continue to escalate. I am sure that you can imagine that it is far better to understand what you can and can’t do before getting pushed into that circumstance. The moment you are bankrupt, it’s usually far too late to take action.
Well if you have been declared insolvent, you won’t really have numerous choices but to move through the process and you will definitely want to get specialist guidance to make sure you are declaring correctly, not breaking any regulations, and will have the bankruptcy discharged as early as feasible.
The good news is that in Australia the arrangements for bankruptcy are effectively quite generous: you could go bankrupt 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 do not claim to understand why that is, but a couple of hundred years ago debtors went to prison. In these times I suppose the government believes that the quicker 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 anyway.
Going bankrupt will clear away the vast majority of your different financial debts, (including tax debts to the ATO) but keep in mind 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 insured.
There is far more that could be explained about this and Bankruptcy generally so if getting some guidance, keep in mind that there are always choices when it includes Bankruptcy in Geraldton, 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 hold off to get in touch with Bankruptcy Experts Geraldton on 1300 795 575, or visit our website: www.bankruptcyexpertsgeraldton.com.au.