Bankruptcy in Wollongong– Voluntary or involuntary bankruptcy?

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Bankruptcy in Wollongong– Voluntary or involuntary bankruptcy?

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

how-to-provide-security-over-assets-or-a-guarantee-to-a-lenderWhen it comes to Bankruptcy in Wollongong, normally individuals aren’t conscious that there is both voluntary, and involuntary bankruptcy– and this is important because at times people don’t become aware that others can declare them bankrupt– and also if this happens you have particular rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when an individual you owe money to involves the court to declare you insolvent. This will lead to you being issued with a notice that, usually when you get one of these kinds 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 supply a sequestration order that proclaims you insolvent. During the course of this time you will have a short window wherein you can argue and put your case forward as to exactly why it really should not progress to the next level and why you ought to not be declared insolvent. But once the determination has been made, you will be insolvent and going through the same steps as those who took that path willingly.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of even more stress and anxiety, worry and fear since other people are taking control of your way of life. My most important suggestion with Bankruptcy and involuntary bankruptcy is that if you think that it could take place, get expert recommendations on bankruptcy as early as feasible, even if you are just worried about bills 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 scenario. Once you are bankrupt, it’s ordinarily far too late to act.

What next?

Well if you have been declared insolvent, you won’t really have numerous choices but to move through the process and you will want to get competent suggestions to make sure you are declaring correctly, not breaking any regulations, and will have the bankruptcy discharged as quickly as possible.

The bright side is that in Australia the arrangements for bankruptcy are actually really generous: you could go bankrupt owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared to nations like the United States, our bankruptcy laws are rather good.

I do not pretend to understand why that is, but a couple of hundred years ago debtors went to prison. In these times I suppose the government thinks that the faster 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.

Bankruptcy will wipe away the huge majority of your various financial obligations, (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 said about this and Bankruptcy in general so when getting some recommendations, bear in mind that there are often alternatives when it includes Bankruptcy in Wollongong, so do some groundwork, and good luck!

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

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