When it comes to Bankruptcy, there are 2 types of individuals– people who have chosen to declare bankruptcy and those declared bankrupt by others (Their creditors).
When it comes to Bankruptcy in Alice Springs, typically people aren’t conscious that there is both voluntary, and involuntary bankruptcy– and this is very important because in some cases people don’t know that others can declare them insolvent– and also if this develops you have certain rights and’ obligations attached.
Involuntary bankruptcy occurs when a person you owe money to calls for the court to declare you bankrupt. This will lead to you being issued with a notice that, generally when you get one of these sorts of notices, you have 21 days to pay all the debt. If you do not, then the creditor goes back to the court and asks the court to provide a sequestration order that proclaims you bankrupt. During the course of this time you are going to have a short window in which you can argue and put your case forward as to the reason why it ought to not progress to the next level and why you should not be declared bankrupt. But once the decision has been made, you will be bankrupt and experiencing the same measures as individuals who took that path voluntarily.
Having said that, when it concerns Bankruptcy you can picture that the involuntary procedure is full of much more stress, worry and fear as other people are taking control of your life. My biggest suggestion with Bankruptcy and involuntary bankruptcy is that if you think that it might take place, get expert guidance on bankruptcy as soon as possible, even if you are just worried about bills and fear that it might continue to escalate. I am sure that you can visualize that it is better to realise 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.
Well if you have been declared bankrupt, you won’t really have too many alternatives but to move through the experience and you will definitely want to get competent recommendations to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as early as possible.
Fortunately is that in Australia the arrangements for bankruptcy are effectively really generous: you can go bankrupt owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared to countries like the United States, our insolvency laws are rather good.
I don’t claim to understand why that is, but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government thinks that the sooner it can get you back on your feet working and paying tax obligations, the better. It makes much more sense than locking you up which costs the taxpayer regardless.
Personal bankruptcy will clear away the huge bulk of your different financial 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 might be explained about this and Bankruptcy in general so if getting some guidance, remember that there are often options when it involves Bankruptcy in Alice Springs, so do some research, and good luck!
If you want to learn more about precisely what to do, where to turn and what questions to ask about Bankruptcy, then don’t hesitate to get in contact with Bankruptcy Experts Alice Springs on 1300 795 575, or visit our website: www.bankruptcyexpertsalicesprings.com.au.