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

how-to-provide-security-over-assets-or-a-guarantee-to-a-lender

When it comes to Bankruptcy in Dandenong, typically individuals aren’t aware that there can be both voluntary, and involuntary bankruptcy– and this is crucial because at times people don’t understand that others can declare them bankrupt– and that if this occurs 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 bankrupt. This will lead to you being issued with a notice that, typically when you get one of these types 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. Throughout this time you will have a short window wherein you can argue and put your case forward concerning exactly why it should not proceed to the next level and why you should not be declared bankrupt. Once the determination has been made, you will be insolvent and experiencing the same steps as those who took that path freely.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary process is full of even more stress, worry and concern because other people are taking control of your way of life. My most important suggestion with Bankruptcy and involuntary bankruptcy is that if you believe that it might occur, get qualified advice on bankruptcy as early as feasible, even if you are just stressed over bills and fear that it might continue to escalate. I am sure that you can envision that it is much better to know what you can and can’t do before getting forced into that predicament. The moment you are insolvent, it’s normally far too late to take action.

What next?

Well if you have been declared bankrupt, you will not really have too many choices but to move through the experience and you will definitely want to get expert advice 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 quite generous: you can declare bankruptcy 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 claim to understand why that is, but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government believes that the faster it can get you back on your feet working and paying off income taxes, the better. It makes more sense than locking you up which costs the taxpayer in any case.

Going bankrupt will wipe away the vast majority of your different financial debts, (including tax debts to the ATO) but keep 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 far more that might be said about this and Bankruptcy generally so if getting some guidance, keep in mind that there are always alternatives when it includes Bankruptcy in Dandenong, so do some groundwork, 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 touch with Bankruptcy Experts Dandenong on 1300 795 575, or visit our website: www.bankruptcyexpertsdandenong.com.au.

Bankruptcy in Dandenong– Voluntary or involuntary bankruptcy?