October 18, 2016Comments Closed

Bankruptcy in Mount Isa– Voluntary or involuntary bankruptcy?

Posted by:admin onOctober 18, 2016

When it comes to Bankruptcy, there are 2 types of people– people who have chosen to declare bankruptcy and those individuals declared bankrupt by others (Their creditors).

Bankruptcy Experts Mount Isa

When it comes to Bankruptcy in Mount Isa, normally individuals aren’t aware that there can be both voluntary, and involuntary bankruptcy– and this is crucial because sometimes people don’t become aware that others can declare them insolvent– and that if this develops you have certain rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when a person you owe money to involves the court to declare you insolvent. This will lead to you being given with a notice that, generally when you obtain 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 supply a sequestration order that declares you insolvent. Throughout this time you are going to have a short window where you can dispute and put your case forward concerning the reason why it really should not proceed to the next degree and the reason why you should not be declared insolvent. But once the determination has been made, you will be bankrupt and going through the same steps as people who took that path freely.

However, when it concerns Bankruptcy you can picture that the involuntary procedure is full of even more tension, worry and concern since other people are taking control of your life. My biggest idea with Bankruptcy and involuntary bankruptcy is that if you think that it could happen, get expert recommendations on bankruptcy as early as feasible, even if you are just stressed over bills and fear that it might continue to escalate. I am sure that you can envision that it is much better to realise what you can and can’t do before getting forced into that predicament. Once you are insolvent, it’s ordinarily far too late to take action.

What next?

Well if you have been declared insolvent, you will not really have many options but to move through the experience and you will certainly want to get competent advice to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as early as achievable.

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

I don’t pretend to know why that is, but a couple of hundred years ago debtors went to prison. In these times I presume the government thinks that the earlier it can get you back on your feet working and paying tax, the better. It makes much more sense than locking you up which costs the taxpayer in any case.

Insolvency will clear away the vast majority of your several financial debts, (including tax debts to the ATO) but remember the few exemptions- 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 insured.

There is a lot more that could be stated about this and Bankruptcy generally so if getting some advice, remember that there are always choices when it includes Bankruptcy in Mount Isa, so do some groundwork, 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 touch with Bankruptcy Experts Mount Isa on 1300 795 575, or visit our website: www.bankruptcyexpertsmountisa.com.au.

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