Bankruptcy in Port Macquarie– Voluntary or involuntary bankruptcy?

Bankruptcy Port Macquarie

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

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

Involuntary bankruptcy:

Involuntary bankruptcy takes place 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, generally when you get one of these kinds of notices, you have 21 days to pay all the debt. If you do not, then the creditor goes back to the court and asks the court to provide a sequestration order that declares you bankrupt. During the course of this time you will have a brief window in which you can dispute and put your case forward concerning the reason that it really should not advance to the next degree and the reason why you should not be declared bankrupt. But once the determination has been made, you will be insolvent and going through the same steps as individuals who took that path willingly.

Nonetheless, when it concerns Bankruptcy you can picture that the involuntary procedure is full of even more tension, worry and fear because other people are taking control of your way of life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you believe that it may take place, get professional advice on bankruptcy as early as feasible, even if you are just stressed over bills 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 pushed into that circumstance. The moment you are bankrupt, it’s generally far too late to act.

What next?

Well if you have been declared bankrupt, you won’t really have many options but to move through the experience and you will certainly want to get specialist advice to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as early as achievable.

Fortunately is that in Australia the arrangements for bankruptcy are effectively very generous: you can easily declare bankruptcy owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared with countries like the United States, our bankruptcy 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 suppose the government believes that the quicker it can get you back on your feet working and paying tax, the better. It makes much more sense than locking you up which costs the taxpayer in any case.

Insolvency will clear away the vast bulk of your several financial debts, (including tax debts to the ATO) but always remember 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 much more that might be said about this and Bankruptcy as a whole so if obtaining some advice, keep in mind that there are often choices when it involves Bankruptcy in Port Macquarie, 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 touch with Bankruptcy Experts Port Macquarie on 1300 795 575, or visit our website: www.bankruptcyexpertsportmacquarie.com.au.

By | 2018-06-29T01:59:58+00:00 October 17th, 2016|Bankrupt, blog|0 Comments

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