Bankruptcy in Tamworth– Voluntary or involuntary bankruptcy?

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Bankruptcy in Tamworth– Voluntary or involuntary bankruptcy?

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

When it comes to Bankruptcy in Tamworth, typically individuals aren’t conscious that there could be both voluntary, and involuntary insolvency– and this is crucial because often individuals don’t know that others can declare them insolvent– and that if this develops you have certain rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when a person you owe money to involves the court to declare you insolvent. This will lead to you being issued with a notice that, normally when you obtain one of these kinds of notices, you have 21 days to pay all the debt. If you don’t, then the lender goes back to the court and asks the court to provide a sequestration order that declares you insolvent. Throughout this time you are going to have a short window where you can argue and put your case forward as to the reason why it really should not proceed to the next level and the reason why you should not be declared bankrupt. But once the determination has been made, you will be bankrupt and experiencing the same steps as those who took that path freely.

However, when it concerns Bankruptcy you can picture that the involuntary process is full of far more strain, worry and concern because other people are taking control of your entire life. My most important suggestion with Bankruptcy and involuntary bankruptcy is that if you believe that it may happen, get qualified guidance on bankruptcy as early 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 much better to understand what you can and can’t do before being pushed into that situation. Once you are bankrupt, it’s usually far too late to take steps.

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 certainly want to get expert suggestions to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as soon as possible.

The bright side is that in Australia the arrangements for bankruptcy are really very generous: you can go bankrupt owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared to nations like the United States, our bankruptcy laws are quite good.

I don’t claim to know why that is, but a couple of hundred years ago debtors went to prison. In these times I suppose the government thinks that the sooner it can get you back on your feet working and paying tax obligations, the better. It makes much more sense than locking you up which costs the taxpayer anyway.

Insolvency will wipe away the huge bulk of your different financial obligations, (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 far more that can be explained about this and Bankruptcy as a whole so when getting some guidance, remember that there are often alternatives when it involves Bankruptcy in Tamworth, 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 contact with Bankruptcy Experts Tamworth on 1300 795 575, or visit our website: www.bankruptcyexpertstamworth.com.au.

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