Bankruptcy in Toowoomba– Voluntary or involuntary bankruptcy?
10
October
2016

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

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When it comes to Bankruptcy in Toowoomba, normally lots of 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 understand that others can declare them insolvent– and that if this happens you have particular rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when a person you owe money to involves the court to declare you bankrupt. This will result in you being issued with a notice that, typically when you get one of these kinds of notices, you have 21 days to pay all the financial debt. If you don’t, then the lender goes back to the court and asks the court to supply a sequestration order that proclaims you bankrupt. During this time you are going to have a brief window in which you can argue and put your case forward as to the reason why it really should not advance to the next level and the reason why you ought to not be declared bankrupt. But once the decision has been made, you will be bankrupt and experiencing the same procedures as people who took that path willingly.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of much more stress, worry and fear because other people are taking control of your entire life. My biggest advice with Bankruptcy and involuntary bankruptcy is that if you feel that it might take place, get specialist recommendations on bankruptcy as soon as feasible, even if you are just stressed over debt and fear that it could continue to escalate. I am sure that you can imagine that it is better to realise what you can and can’t do before getting pushed into that circumstance. The moment you are insolvent, it’s normally far too late to take steps.

What next?

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

Fortunately is that in Australia the arrangements for bankruptcy are effectively very generous: you can go bankrupt owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared to countries like the United States, our bankruptcy laws are rather good.

I do not claim 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 quicker it can get you back on your feet working and paying off tax obligations, the better. It makes much more sense than locking you up which costs the taxpayer anyway.

Personal bankruptcy will clear away the vast bulk of your several 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 insured.

There is far more that can be stated about this and Bankruptcy in general so when getting some guidance, keep in mind that there are always alternatives when it involves Bankruptcy in Toowoomba, so do some research, and good luck!

If you wish to find out more about precisely 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 Toowoomba on 1300 795 575, or visit our website: www.bankruptcyexpertstoowoomba.com.au.

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