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

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When it comes to Bankruptcy in Gosford, typically people aren’t conscious that there can be both voluntary, and involuntary insolvency– and this is crucial because often individuals don’t realise that others can declare them insolvent– and that if this occurs you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when an individual you owe money to involves the court to declare you bankrupt. This will result in you being issued 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 proclaims you insolvent. Throughout this time you are going to have a short window where you can argue and put your case forward concerning the reason why it ought to not advance to the next level and why you ought to not be declared insolvent. But once the decision has been made, you will be bankrupt and going through the same steps as individuals who took that path freely.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of even more strain, worry and fear as other people are taking control of your entire life. My most important advice with Bankruptcy and involuntary bankruptcy is that if you believe that it may take place, get specialist guidance on bankruptcy as early as possible, even if you are just worried about financial debt and fear that it might continue to escalate. I am sure that you can envision that it is much better to understand what you can and can’t do before getting pushed into that circumstance. Once you are bankrupt, it’s usually far too late to act.

What next?

Well if you have been declared bankrupt, you will not really have many alternatives but to move through the experience 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 quickly as possible.

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

I do not pretend to know why that is, but a couple of hundred years ago debtors went to jail. Nowadays I suppose the government believes that the sooner it can get you back on your feet working and paying off tax obligations, the better. It makes much more sense than locking you up which costs the taxpayer in any case.

Personal bankruptcy will clear away the huge bulk of your different debts, (including tax debts to the ATO) but always 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 a lot more that might be said about this and Bankruptcy generally so if getting some recommendations, remember that there are always alternatives when it includes Bankruptcy in Gosford, so do some groundwork, and good luck!

If you want 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 Gosford on 1300 795 575, or visit our website: www.bankruptcyexpertsgosford.com.au.

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