Bankruptcy in Bunbury– Voluntary or involuntary bankruptcy?

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Bankruptcy in Bunbury– Voluntary or involuntary bankruptcy?

When it involves Bankruptcy, there are 2 kinds of people– those who have made a decision to declare bankruptcy and people declared insolvent by others (Their creditors).

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When it comes to Bankruptcy in Bunbury, normally lots of people aren’t aware that there is both voluntary, and involuntary bankruptcy– and this is very important because in some cases individuals don’t become aware that others can declare them insolvent– and that if this happens you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs when an individual you owe money to calls for the court to declare you bankrupt. This will lead to you being issued 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 do not, then the creditor returns to the court and asks the court to supply a sequestration order that declares you bankrupt. During the course of this time you will have a brief window wherein you can argue and put your case forward as to exactly why it ought to not advance to the next level and why you ought to not be declared insolvent. Once the determination has been made, you will be insolvent and going through the same measures as those who took that path freely.

Having said that, when it concerns Bankruptcy you can picture that the involuntary procedure is full of much more tension, worry and concern as other people are taking control of your life. My biggest tip with Bankruptcy and involuntary bankruptcy is that if you think that it might occur, get qualified advice on bankruptcy as early as feasible, even if you are just stressed over debt and fear that it could continue to escalate. I am sure that you can picture that it is much better to realise what you can and can’t do before being forced into that scenario. The moment you are insolvent, it’s normally far too late to act.

What next?

Well if you have been declared bankrupt, you will not really have many options but to move through the process and you will certainly want to get qualified guidance to make sure you are declaring properly, not breaking any rules, and will have the bankruptcy discharged as quickly as feasible.

Fortunately is that in Australia the arrangements for bankruptcy are actually really 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 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 believes that the quicker 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 anyway.

Personal bankruptcy will clear away the huge majority of your several debts, (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 covered.

There is a lot more that can be said about this and Bankruptcy generally so if obtaining some guidance, bear in mind that there are always options when it involves Bankruptcy in Bunbury, so do some research, and good luck!

If you want to find out more about precisely what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hold off to get in contact with Bankruptcy Experts Bunbury on 1300 795 575, or visit our website: www.bankruptcyexpertsbunbury.com.au.

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