Bankruptcy in Sunshine Coast– Voluntary or involuntary bankruptcy?

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Bankruptcy in Sunshine Coast– Voluntary or involuntary bankruptcy?

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

When it comes to Bankruptcy in Sunshine Coast, normally lots of people aren’t conscious that there is both voluntary, and involuntary bankruptcy– and this is important because sometimes people don’t realise that others can declare them bankrupt– and also if this happens you have particular rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when a person you owe money to calls for the court to declare you bankrupt. This will lead to you being given with a notice that, typically when you get one of these sorts of notices, you have 21 days to pay all the debt. If you don’t, then the lender goes back to the court and asks the court to provide a sequestration order that declares 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 that it ought to not progress to the next level and the reason why you ought to not be declared insolvent. But once the decision has been made, you will be bankrupt and experiencing the same steps as people who took that path freely.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of even more strain, worry and fear since other people are taking control of your life. My biggest advice with Bankruptcy and involuntary bankruptcy is that if you believe that it may occur, get qualified guidance on bankruptcy as early as feasible, even if you are just stressed over financial debt and fear that it might continue to escalate. I am sure that you can picture that it is better to understand what you can and can’t do before getting pushed into that scenario. Once you are bankrupt, it’s ordinarily far too late to take action.

What next?

Well if you have been declared insolvent, you will not really have too many alternatives but to move through the experience and you will definitely want to get professional guidance to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as soon as feasible.

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

I don’t claim to understand why that is, but a couple of hundred years ago debtors went to jail. Nowadays I presume the government thinks that the sooner it can get you back on your feet working and paying income taxes, the better. It makes more sense than locking you up which costs the taxpayer in any case.

Insolvency will clear away the vast bulk of your various debts, (including tax debts to the ATO) but always 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 much more that can be explained about this and Bankruptcy generally so if getting some advice, bear in mind that there are often options when it involves Bankruptcy in Sunshine Coast, so do some research, and good luck!

If you want to learn more about precisely what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hold off to get in touch with Bankruptcy Experts Sunshine Coast on 1300 795 575, or visit our website: www.bankruptcyexpertssunshinecoast.com.au.

By | 2017-10-11T06:15:38+00:00 October 17th, 2016|Bankruptcy, Liquidation|0 Comments

About the Author:

Director of Fresh Start Solutions and specialises in helping people free themselves from overwhelming debt. Whether it's Bankruptcy, Liquidation, Insolvency Advice or simply General Debt Advice.