October 17, 2016Comments Closed

Bankruptcy in Ipswich– Voluntary or involuntary bankruptcy?

Posted by:admin onOctober 17, 2016

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

how-to-provide-security-over-assets-or-a-guarantee-to-a-lenderWhen it comes to Bankruptcy in Ipswich, normally individuals aren’t conscious that there could be both voluntary, and involuntary insolvency– and this is very important because sometimes individuals don’t understand that others can declare them insolvent– and that if this develops you have particular rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when an individual you owe money to calls for the court to declare you insolvent. This will lead to you being issued with a notice that, normally when you get one of these kinds of notices, you have 21 days to pay all the financial debt. If you don’t, then the lender returns to the court and asks the court to supply a sequestration order that declares you insolvent. During the course of this time you will have a short window wherein you can dispute and put your case forward concerning why it should not progress to the next degree and the reason why you ought to not be declared bankrupt. But once the decision has been made, you will be insolvent and experiencing the same steps as individuals who took that path freely.

However, when it concerns Bankruptcy you can imagine that the involuntary process is full of much more stress, worry and fear because other people are taking control of your way of life. My biggest suggestion with Bankruptcy and involuntary bankruptcy is that if you believe that it could take place, get qualified guidance on bankruptcy as early as feasible, even if you are just stressed over bills and fear that it might continue to escalate. I am sure that you can picture that it is much better to understand what you can and can’t do before being pushed into that predicament. Once you are insolvent, it’s normally far too late to take steps.

What next?

Well if you have been declared insolvent, you won’t really have numerous options but to move through the experience and you will certainly want to get specialist advice to make sure you are declaring properly, 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 actually quite generous: you can easily go bankrupt owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared to nations like the United States, our bankruptcy laws are quite good.

I don’t 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 earlier 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.

Personal bankruptcy will wipe away the huge bulk of your different financial obligations, (including tax debts to the ATO) but bear in mind the few exemptions- the main 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 could be stated about this and Bankruptcy in general so if getting some recommendations, bear in mind that there are always choices when it involves Bankruptcy in Ipswich, so do some research, and good luck!

If you wish to find out 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 Ipswich on 1300 795 575, or visit our website: www.bankruptcyexpertsipswich.com.au.

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