Bankruptcy in Dubbo– Voluntary or involuntary bankruptcy?

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Bankruptcy in Dubbo– Voluntary or involuntary bankruptcy?

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

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When it comes to Bankruptcy in Dubbo, normally individuals aren’t conscious that there could be both voluntary, and involuntary insolvency– and this is crucial because sometimes people don’t understand that others can declare them insolvent– and also if this happens you have certain 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, normally when you get one of these sorts of notices, you have 21 days to pay all the 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 where you can dispute and put your case forward as to why it really should not advance to the next degree and why you should not be declared insolvent. Once the decision has been made, you will be insolvent and experiencing the same steps as people who took that path willingly.

Having said that, when it concerns Bankruptcy you can picture that the involuntary procedure is full of much more stress, worry and fear as other people are taking control of your life. My biggest advice with Bankruptcy and involuntary bankruptcy is that if you feel that it could happen, get expert advice on bankruptcy as early as feasible, even if you are just worried about financial debt and fear that it might continue to escalate. I am sure that you can envision that it is better to realise what you can and can’t do before getting pushed into that circumstance. Once you are bankrupt, it’s generally far too late to act.

What next?

Well if you have been declared insolvent, you won’t really have many choices but to move through the process and you will certainly want to get competent suggestions to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as early as feasible.

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

I don’t pretend to understand why that is, but a couple of hundred years ago debtors went to prison. Nowadays I presume the government finds that the earlier it can get you back on your feet working and paying tax obligations, the better. It makes more sense than locking you up which costs the taxpayer anyway.

Insolvency will wipe away the huge majority of your various debts, (including tax debts to the ATO) but remember the few exceptions- 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 covered.

There is a lot more that can be said about this and Bankruptcy in general so when obtaining some recommendations, keep in mind that there are often choices when it involves Bankruptcy in Dubbo, so do some groundwork, and good luck!

If you wish to learn more about exactly 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 Dubbo on 1300 795 575, or visit our website: www.bankruptcyexpertsdubbo.com.au.

By | 2016-10-18T00:21:54+00:00 October 18th, 2016|banrkuptcy, blog|0 Comments

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