Bankruptcy in Geelong– Voluntary or involuntary bankruptcy?

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

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When it comes to Bankruptcy in Geelong, normally lots of people aren’t conscious that there can be both voluntary, and involuntary insolvency– and this is very important because often individuals don’t understand that others can declare them insolvent– and also if this happens you have certain rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs when a person you owe money to calls for the court to declare you insolvent. This will result in you being given with a notice that, typically when you obtain one of these types of notices, you have 21 days to pay all the debt. If you do not, then the creditor goes back to the court and asks the court to supply a sequestration order that declares you bankrupt. Throughout this time you are going to have a brief window where you can dispute and put your case forward concerning the reason that it should not progress to the next degree and the reason why you ought to not be declared bankrupt. But once the decision has been made, you will be bankrupt and experiencing the same actions as people who took that path voluntarily.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of much more tension, worry and concern since other people are taking control of your entire life. My biggest advice with Bankruptcy and involuntary bankruptcy is that if you believe that it could occur, get expert recommendations on bankruptcy as soon as possible, even if you are just worried about financial debt and fear that it could continue to escalate. I am sure that you can imagine that it is much better to recognize what you can and can’t do before getting pushed into that situation. The moment you are bankrupt, it’s usually far too late to take steps.

What next?

Well if you have been declared insolvent, you will not really have too many choices but to move through the process and you will want to get professional suggestions to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as quickly as possible.

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

I don’t pretend to know why that is, but a couple of hundred years ago debtors went to prison. These days I suppose the government believes that the earlier 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 in any case.

Going bankrupt will clear away the huge bulk of your different debts, (including tax debts to the ATO) but keep in mind 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 much more that might be explained about this and Bankruptcy generally so when getting some advice, keep in mind that there are always alternatives when it involves Bankruptcy in Geelong, so do some research, and good luck!

If you want to learn more about precisely what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hesitate to get in contact with Bankruptcy Experts Geelong on 1300 795 575, or visit our website: www.bankruptcyexpertsgeelong.com.au.

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