Bankruptcy in Frankston– Voluntary or involuntary bankruptcy?

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Bankruptcy in Frankston– Voluntary or involuntary bankruptcy?

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

When it comes to Bankruptcy in Frankston, normally lots of people aren’t aware that there could be both voluntary, and involuntary insolvency– and this is important because sometimes a lot of people don’t realise that others can declare them insolvent– and that if this develops you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place 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 obtain one of these types of notices, you have 21 days to pay all the debt. If you do not, then the lender goes back to the court and asks the court to provide a sequestration order that proclaims you insolvent. During this time you are going to have a brief window where you can argue and put your case forward concerning the reason that it really should not proceed 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 steps as individuals who took that path freely.

Nonetheless, when it concerns Bankruptcy you can picture that the involuntary procedure is full of even more stress, worry and fear as other people are taking control of your entire life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you believe that it could occur, get professional advice 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 imagine that it is better to understand what you can and can’t do before being pushed into that scenario. The moment you are insolvent, it’s generally far too late to act.

What next?

Well if you have been declared insolvent, you will not really have many options but to move through the experience and you will want to get qualified suggestions to make sure you are declaring correctly, not breaking any guidelines, and will have the bankruptcy discharged as quickly as possible.

The good news is that in Australia the arrangements for bankruptcy are effectively very generous: you could declare bankruptcy owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared with countries like the United States, our insolvency laws are quite good.

I don’t claim to understand why that is, but a couple of hundred years ago debtors went to prison. Nowadays I presume the government finds that the sooner 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.

Bankruptcy will wipe away the vast bulk of your several financial 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 insured.

There is a lot more that can be explained about this and Bankruptcy in general so when getting some guidance, remember that there are always alternatives when it includes Bankruptcy in Frankston, so do some groundwork, and good luck!

If you wish to find out more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to get in contact with Bankruptcy Experts Frankston on 1300 795 575, or visit our website: www.bankruptcyexpertsfrankston.com.au.

By | 2017-10-11T03:25:25+00:00 October 17th, 2016|Bankruptcy, Liquidation|0 Comments

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