Bankruptcy in Fremantle– Voluntary or involuntary bankruptcy?

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Bankruptcy in Fremantle– Voluntary or involuntary bankruptcy?

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

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When it comes to Bankruptcy in Fremantle, typically people aren’t conscious that there is both voluntary, and involuntary insolvency– and this is very important because in some cases a lot of people don’t understand that others can declare them insolvent– and also if this happens you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when an individual you owe money to calls for the court to declare you bankrupt. This will result in you being issued 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 supply a sequestration order that declares you insolvent. During the course of this time you will have a short window wherein you can dispute and put your case forward concerning the reason that it should not proceed to the next degree and the reason why you should not be declared bankrupt. Once the determination has been made, you will be bankrupt and experiencing the same actions as individuals who took that path willingly.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of far more strain, worry and concern because other people are taking control of your entire life. My biggest idea with Bankruptcy and involuntary bankruptcy is that if you believe that it might occur, get specialist recommendations on bankruptcy as quickly as possible, even if you are just worried about financial debt and fear that it could continue to escalate. I am sure that you can visualize that it is better to understand what you can and can’t do before being forced into that situation. Once you are insolvent, it’s usually far too late to take steps.

What next?

Well if you have been declared bankrupt, you will not really have many choices but to move through the process and you will want to get competent guidance to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as early as possible.

The good news is that in Australia the arrangements for bankruptcy are really quite generous: you can easily 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 bankruptcy laws are rather good.

I do not claim to understand why that is, but a couple of hundred years ago debtors went to jail. In these times I presume the government believes that the sooner it can get you back on your feet working and paying off tax, the better. It makes much more sense than locking you up which costs the taxpayer regardless.

Personal bankruptcy will clear away the vast bulk of your different financial debts, (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 might be explained about this and Bankruptcy in general so when obtaining some guidance, bear in mind that there are often choices when it involves Bankruptcy in Fremantle, so do some research, and good luck!

If you wish to learn more about exactly what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hold off to get in touch with Bankruptcy Experts Fremantle on 1300 795 575, or visit our website: www.bankruptcyexpertsfremantle.com.au.

By | 2016-10-17T23:47:23+00:00 October 17th, 2016|Bankruptcy, Blog|0 Comments

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