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

how-to-provide-security-over-assets-or-a-guarantee-to-a-lender

When it comes to Bankruptcy in Whitsundays, normally individuals aren’t aware that there could be both voluntary, and involuntary bankruptcy– and this is crucial because at times 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 happens when an individual you owe money to calls for the court to declare you insolvent. This will lead to you being issued with a notice that, typically when you get one of these sorts of notices, you have 21 days to pay all the financial debt. If you don’t, then the lender goes back to the court and asks the court to provide a sequestration order that declares you insolvent. During the course of this time you are going to have a brief window where you can dispute and put your case forward concerning why it really should not proceed to the next level and why you should not be declared insolvent. Once the determination has been made, you will be bankrupt and going through the same actions as those who took that path willingly.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of much more strain, worry and fear because other people are taking control of your life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you think that it may happen, get specialist recommendations on bankruptcy as soon as possible, even if you are just stressed over bills and fear that it could continue to escalate. I am sure that you can imagine that it is better to understand what you can and can’t do before being pushed into that predicament. Once 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 definitely want to get professional recommendations to make sure you are declaring correctly, not breaking any regulations, and will have the bankruptcy discharged as soon as achievable.

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 to countries like the United States, our bankruptcy laws are quite good.

I don’t pretend to understand 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 off tax, the better. It makes more sense than locking you up which costs the taxpayer regardless.

Going bankrupt will clear away the huge bulk of your various 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 covered.

There is far more that might be explained about this and Bankruptcy in general so if obtaining some advice, remember that there are often alternatives when it involves Bankruptcy in Whitsundays, so do some research, and good luck!

If you wish 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 Whitsundays on 1300 795 575, or visit our website: Bankrupt Whitsundays