Bankruptcy in Maitland– Voluntary or involuntary bankruptcy?

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Bankruptcy in Maitland– Voluntary or involuntary bankruptcy?

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

When it comes to Bankruptcy in Maitland, normally lots of people aren’t conscious that there is both voluntary, and involuntary insolvency– and this is very important because often individuals don’t realise that others can declare them insolvent– and also if this develops you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs when a person you owe money to involves the court to declare you insolvent. This will result in you being given with a notice that, normally when you get one of these sorts of notices, you have 21 days to pay all the financial debt. If you do not, then the creditor returns 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 dispute and put your case forward as to the reason why it should not proceed to the next degree and the reason why you should not be declared insolvent. Once the determination has been made, you will be insolvent and going through the same procedures as individuals who took that path freely.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary process is full of far more stress, worry and concern since other people are taking control of your way of life. My most important tip with Bankruptcy and involuntary bankruptcy is that if you feel that it might take place, get expert advice 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 visualize that it is better to realise what you can and can’t do before being forced into that circumstance. Once you are bankrupt, it’s normally far too late to take steps.

What next?

Well if you have been declared bankrupt, you will not really have numerous options but to move through the experience and you will certainly want to get competent suggestions to make sure you are declaring correctly, not breaking any guidelines, and will have the bankruptcy discharged as early as possible.

The bright side is that in Australia the arrangements for bankruptcy are effectively 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 rather good.

I do not claim to know why that is, but a couple of hundred years ago debtors went to prison. These days 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 more sense than locking you up which costs the taxpayer anyway.

Going bankrupt will clear away the huge bulk of your various financial obligations, (including tax debts to the ATO) but bear 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 much more that could be said about this and Bankruptcy in general so when obtaining some recommendations, keep in mind that there are often alternatives when it involves Bankruptcy in Maitland, so do some groundwork, and good luck!

If you want to learn 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 Maitland on 1300 795 575, or visit our website: www.bankruptcyexpertsmaitland.com.au.

By | 2018-07-05T00:27:47+00:00 October 17th, 2016|Bankrupt, blog|0 Comments

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