Bankruptcy in Tennant Creek– Voluntary or involuntary bankruptcy?

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Bankruptcy in Tennant Creek– Voluntary or involuntary bankruptcy?

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

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When it comes to Bankruptcy in Tennant Creek, normally lots of people aren’t aware that there is both voluntary, and involuntary bankruptcy– and this is important because often people don’t realise that others can declare them insolvent– and also if this develops 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 bankrupt. This will result in you being given with a notice that, usually when you obtain one of these sorts 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 proclaims you bankrupt. During the course of this time you are going to have a brief window wherein you can dispute and put your case forward concerning why it should not progress to the next level and why you should not be declared insolvent. But once the decision has been made, you will be bankrupt and going through the same procedures as individuals who took that path freely.

Nonetheless, when it concerns Bankruptcy you can picture that the involuntary procedure is full of much more stress, worry and concern since other people are taking control of your way of life. My biggest tip with Bankruptcy and involuntary bankruptcy is that if you feel that it may take place, get qualified advice on bankruptcy as quickly as feasible, even if you are just worried about bills and fear that it might continue to escalate. I am sure that you can envision that it is far better to know what you can and can’t do before getting forced into that situation. Once you are bankrupt, it’s normally far too late to take steps.

What next?

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

The good news is that in Australia the arrangements for bankruptcy are effectively really generous: you could go bankrupt 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 rather good.

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

Insolvency will clear away the vast bulk of your different financial debts, (including tax debts to the ATO) but always remember the few exceptions- 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 much more that might be explained about this and Bankruptcy generally so when obtaining some recommendations, keep in mind that there are always alternatives when it includes Bankruptcy in Tennant Creek, so do some research, and good luck!

If you wish to find out 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 Tennant Creek on 1300 795 575, or visit our website: www.bankruptcyexpertstennantcreek.com.au.

By | 2018-07-26T05:16:41+00:00 October 17th, 2016|Bankrupt, Blog|0 Comments

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