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

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When it comes to Bankruptcy in Albury, typically individuals aren’t aware that there is both voluntary, and involuntary insolvency– and this is important because often a lot of people don’t realise that others can declare them bankrupt– and also if this occurs you have particular rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when a person you owe money to involves the court to declare you insolvent. This will result in you being given with a notice that, normally when you get 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 bankrupt. Throughout this time you will have a brief window in which you can argue and put your case forward as to exactly why it really should not advance to the next degree and why you should not be declared bankrupt. Once the decision has been made, you will be insolvent and going through the same procedures as people who took that path freely.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary process is full of much more stress, worry and concern because other people are taking control of your way of life. My most important advice with Bankruptcy and involuntary bankruptcy is that if you feel that it could happen, get specialist guidance on bankruptcy as quickly as possible, even if you are just worried about debt and fear that it could continue to escalate. I am sure that you can visualize that it is much better to recognize what you can and can’t do before being forced into that predicament. The moment you are insolvent, it’s ordinarily far too late to take steps.

What next?

Well if you have been declared insolvent, you won’t really have many choices but to move through the experience and you will want to get expert suggestions to make sure you are declaring correctly, not breaking any regulations, and will have the bankruptcy discharged as early as achievable.

The bright side is that in Australia the arrangements for bankruptcy are actually really generous: you can declare bankruptcy 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 claim to know why that is, but a couple of hundred years ago debtors went to jail. Nowadays I presume the government finds that the quicker 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 regardless.

Personal bankruptcy will wipe away the vast 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 covered.

There is much more that could be explained about this and Bankruptcy as a whole so when getting some guidance, remember that there are always alternatives when it includes Bankruptcy in Albury, so do some groundwork, and good luck!

If you want to find out more about exactly what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hesitate to get in touch with Bankruptcy Experts Albury on 1300 795 575, or visit our website: www.bankruptcyexpertsalbury.com.au.