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

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When it comes to Bankruptcy in Shepparton, typically lots of people aren’t aware that there could be both voluntary, and involuntary insolvency– and this is important because often individuals don’t know that others can declare them insolvent– and also if this happens you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when an individual you owe money to calls for the court to declare you insolvent. This will lead to you being given with a notice that, typically when you get one of these types of notices, you have 21 days to pay all the debt. If you don’t, then the creditor returns to the court and asks the court to supply a sequestration order that declares you bankrupt. Throughout this time you will have a short window in which you can dispute and put your case forward concerning exactly why it should not advance to the next level and the reason why you ought to not be declared insolvent. But once the decision has been made, you will be bankrupt and experiencing the same procedures as people who took that path voluntarily.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary process is full of even more stress, worry and fear because other people are taking control of your way of life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you think that it may take place, get expert recommendations on bankruptcy as quickly as possible, 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 recognize what you can and can’t do before getting forced into that predicament. The moment you are bankrupt, it’s generally far too late to take steps.

What next?

Well if you have been declared bankrupt, you will not really have many options but to move through the experience and you will want to get specialist advice to make sure you are declaring correctly, not breaking any guidelines, 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 could go bankrupt owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared with nations like the United States, our bankruptcy laws are quite good.

I don’t claim to understand why that is, but a couple of hundred years ago debtors went to prison. Nowadays 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 much more sense than locking you up which costs the taxpayer in any case.

Going bankrupt will clear away the huge majority of your different financial obligations, (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 insured.

There is far more that might be said about this and Bankruptcy in general so when getting some recommendations, bear in mind that there are always alternatives when it involves Bankruptcy in Shepparton, so do some groundwork, and good luck!

If you wish 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 Shepparton on 1300 795 575, or visit our website: www.bankruptcyexpertsshepparton.com.au.