Bankruptcy in Mackay– Voluntary or involuntary bankruptcy?

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Bankruptcy in Mackay– Voluntary or involuntary bankruptcy?

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

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When it comes to Bankruptcy in Mackay, typically individuals aren’t conscious that there could be both voluntary, and involuntary bankruptcy– and this is important because at times a lot of people don’t understand that others can declare them bankrupt– and that if this happens you have certain rights and’ obligations attached.

Involuntary bankruptcy:
Involuntary bankruptcy occurs when an individual you owe money to involves the court to declare you insolvent. This will result in you being given with a notice that, typically when you obtain one of these types 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 proclaims you bankrupt. During this time you are going to have a brief window wherein you can dispute and put your case forward as to why it really should not progress to the next degree and the reason why you should not be declared insolvent. But once the decision has been made, you will be insolvent and going through the same actions as those who took that path freely.

However, when it concerns Bankruptcy you can picture that the involuntary process is full of much more stress, worry and fear as other people are taking control of your entire life. My most important advice with Bankruptcy and involuntary bankruptcy is that if you feel that it might happen, get qualified advice on bankruptcy as soon as possible, even if you are just worried about bills and fear that it could continue to escalate. I am sure that you can visualize that it is far better to understand what you can and can’t do before being forced into that scenario. The moment you are bankrupt, it’s ordinarily far too late to act.

What next?
Well if you have been declared bankrupt, you will not really have many alternatives but to move through the experience and you will want to get qualified guidance to make sure you are declaring correctly, not breaking any regulations, and will have the bankruptcy discharged as soon as achievable.

The bright side is that in Australia the arrangements for bankruptcy are really generous: you can easily declare bankruptcy owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared with nations like the United States, our insolvency laws are rather good.

I do not pretend to know why that is, but a couple of hundred years ago debtors went to jail. In these times I presume the government finds that the faster it can get you back on your feet working and paying tax, the better. It makes more sense than locking you up which costs the taxpayer in any case.

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 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 insured.

There is much more that can be said about this and Bankruptcy in general so if getting some recommendations, bear in mind that there are always options when it includes Bankruptcy in Mackay, so do some research, 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 hold off to get in contact with Bankruptcy Experts Mackay on 1300 795 575, or visit our website: www.bankruptcyexpertsmackay.com.au.

By | 2016-10-17T07:25:27+00:00 October 17th, 2016|bankruptcy, blog|0 Comments

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