When it concerns Bankruptcy, there are 2 kinds of people– people who have decided to declare bankruptcy and people declared insolvent by others (Their creditors).
When it comes to Bankruptcy in Adelaide, normally lots of people aren’t aware that there can be both voluntary, and involuntary insolvency– and this is very important because at times a lot of people don’t become aware that others can declare them insolvent– and also if this happens you have certain rights and’ obligations attached.
Involuntary bankruptcy happens 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, usually 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 provide a sequestration order that declares you insolvent. During this time you will have a brief window in which you can argue and put your case forward as to why it should not advance to the next level and why you should not be declared bankrupt. Once the decision has been made, you will be insolvent and experiencing the same measures as those who took that path willingly.
However, when it concerns Bankruptcy you can imagine that the involuntary process is full of much more stress, worry and concern because other people are taking control of your life. My biggest suggestion with Bankruptcy and involuntary bankruptcy is that if you feel that it might take place, get expert recommendations on bankruptcy as soon as feasible, even if you are just stressed over financial debt and fear that it could continue to escalate. I am sure that you can visualize that it is much better to recognize what you can and can’t do before getting forced into that situation. The moment you are bankrupt, it’s generally far too late to take action.
Well if you have been declared insolvent, you will not really have too many alternatives but to move through the process and you will definitely want to get competent guidance to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as early as feasible.
Fortunately is that in Australia the arrangements for bankruptcy are really quite generous: you can declare bankruptcy owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared with 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 jail. Nowadays I presume the government finds that the quicker it can get you back on your feet working and paying off income taxes, the better. It makes much more sense than locking you up which costs the taxpayer in any case.
Personal bankruptcy will wipe away the vast majority of your various debts, (including tax debts to the ATO) but 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 insured.
There is a lot more that might be stated about this and Bankruptcy in general so if obtaining some advice, remember that there are often alternatives when it involves Bankruptcy in Adelaide, so do some research, and good luck!
If you want to find out more about precisely what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hesitate to get in touch with Bankruptcy Experts Adelaide on 1300 795 575, or visit our website: www.bankruptcyexpertsadelaide.com.au.