Bankruptcy in Mildura– Voluntary or involuntary bankruptcy?

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Bankruptcy in Mildura– Voluntary or involuntary bankruptcy?

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

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When it comes to Bankruptcy in Mildura, normally people aren’t aware that there could be both voluntary, and involuntary bankruptcy– and this is important because in some cases a lot of people don’t know that others can declare them bankrupt– and also if this occurs you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when a person 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 financial debt. If you do not, then the lender returns to the court and asks the court to provide a sequestration order that declares you bankrupt. During this time you are going to have a short window where you can argue and put your case forward as to the reason that it ought to not proceed to the next level and the reason why you ought to not be declared insolvent. But once the determination has been made, you will be bankrupt and going through the same steps as individuals who took that path willingly.

Having said that, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of even more tension, worry and fear as other people are taking control of your way of life. My most important tip with Bankruptcy and involuntary bankruptcy is that if you feel that it could take place, get qualified advice on bankruptcy as soon as feasible, even if you are just stressed over financial debt and fear that it might continue to escalate. I am sure that you can visualize that it is better to understand what you can and can’t do before getting forced into that situation. The moment you are insolvent, it’s normally far too late to take action.

What next?

Well if you have been declared bankrupt, you won’t really have too many alternatives but to move through the experience and you will want to get professional recommendations to make sure you are declaring correctly, not breaking any regulations, and will have the bankruptcy discharged as early as achievable.

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

I do not pretend to understand why that is, but a couple of hundred years ago debtors went to jail. These days I presume the government thinks that the sooner it can get you back on your feet working and paying off income taxes, the better. It makes more sense than locking you up which costs the taxpayer regardless.

Insolvency will wipe away the huge bulk of your several 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 insured.

There is far more that can be said about this and Bankruptcy as a whole so if obtaining some guidance, bear in mind that there are always choices when it includes Bankruptcy in Mildura, so do some research, and good luck!

If you want to learn more about precisely 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 Mildura on 1300 795 575, or visit our website: www.bankruptcyexpertsmildura.com.au.

By | 2016-10-17T23:24:45+00:00 October 17th, 2016|bankruptcy, blog|0 Comments

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