When it involves Bankruptcy, there are 2 kinds of people– people who have chosen to declare bankruptcy and people declared bankrupt by others (Their creditors).
When it comes to Bankruptcy in Penrith, normally people aren’t aware that there could be both voluntary, and involuntary bankruptcy– and this is very important because in some cases people don’t realise that others can declare them insolvent– and that if this develops you have particular rights and’ obligations attached.
Involuntary bankruptcy takes place when an individual you owe money to involves the court to declare you bankrupt. This will result in you being issued with a notice that, usually when you get one of these sorts of notices, you have 21 days to pay all the debt. If you don’t, then the lender returns to the court and asks the court to provide a sequestration order that declares you bankrupt. Throughout this time you are going to have a short window wherein you can argue and put your case forward concerning why it ought to not proceed to the next level and why you should not be declared bankrupt. But once the determination has been made, you will be insolvent and experiencing the same procedures as people who took that path freely.
However, when it concerns Bankruptcy you can picture that the involuntary process is full of even more tension, worry and fear since other people are taking control of your entire life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you believe that it might happen, get qualified recommendations on bankruptcy as soon as feasible, even if you are just worried about financial debt and fear that it might continue to escalate. I am sure that you can picture that it is better to recognize what you can and can’t do before being forced into that circumstance. The moment you are bankrupt, it’s normally far too late to take steps.
Well if you have been declared insolvent, you won’t really have too many options but to move through the process and you will want to get specialist recommendations to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as soon as possible.
The good news is that in Australia the arrangements for bankruptcy are actually very generous: you can easily go bankrupt owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared to nations like the United States, our bankruptcy laws are quite good.
I don’t pretend to know why that is, but a couple of hundred years ago debtors went to prison. These days I presume the government thinks that the faster 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 anyway.
Insolvency will clear away the vast bulk of your various debts, (including tax debts to the ATO) but always remember 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 covered.
There is far more that can be explained about this and Bankruptcy as a whole so when obtaining some recommendations, keep in mind that there are always alternatives when it involves Bankruptcy in Penrith, so do some groundwork, and good luck!
If you wish to learn more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to get in contact with Bankruptcy Experts Penrith on 1300 795 575, or visit our website: www.bankruptcyexpertspenrith.com.au.