Bankruptcy in Parramatta– Voluntary or involuntary bankruptcy?

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Bankruptcy in Parramatta– Voluntary or involuntary bankruptcy?

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

When it comes to Bankruptcy in Parramatta, normally people aren’t aware that there could be both voluntary, and involuntary bankruptcy– and this is crucial because in some cases people don’t become aware that others can declare them bankrupt– and also if this happens you have particular rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs when an individual you owe money to calls for the court to declare you bankrupt. This will result in you being given with a notice that, usually when you obtain one of these sorts 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 supply a sequestration order that proclaims you insolvent. Throughout this time you will have a brief window wherein you can dispute and put your case forward concerning exactly why it should not progress to the next level and why you ought to not be declared insolvent. But once the determination has been made, you will be insolvent and experiencing the same actions as people who took that path willingly.

However, when it concerns Bankruptcy you can picture that the involuntary process is full of far more tension, worry and fear as other people are taking control of your way of life. My biggest idea with Bankruptcy and involuntary bankruptcy is that if you believe that it could take place, get expert guidance on bankruptcy as quickly as possible, even if you are just worried about bills and fear that it could continue to escalate. I am sure that you can envision that it is far better to know what you can and can’t do before getting forced into that predicament. Once you are insolvent, it’s usually far too late to take action.

What next?

Well if you have been declared bankrupt, you will not really have many choices but to move through the experience and you will definitely want to get professional recommendations to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as soon as achievable.

The good news is that in Australia the arrangements for bankruptcy are actually very generous: you could declare bankruptcy owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared to countries like the United States, our insolvency laws are quite good.

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

Bankruptcy will clear away the vast majority of your different financial debts, (including tax debts to the ATO) but bear in mind 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 a lot more that might be said about this and Bankruptcy in general so when obtaining some guidance, keep in mind that there are often options when it includes Bankruptcy in Parramatta, so do some research, and good luck!

If you want 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 contact with Bankruptcy Experts Parramatta on 1300 795 575, or visit our website: www.bankruptcyexpertsparramatta.com.au.

By | 2017-10-13T02:18:51+00:00 October 17th, 2016|Bankruptcy, Liquidation|0 Comments

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