- Oct 17, 2016
When it concerns Bankruptcy, there are 2 kinds of individuals– those who have chosen to declare bankruptcy and people declared insolvent by others (Their creditors).
When it comes to Bankruptcy in Cairns, typically people aren’t aware that there could be both voluntary, and involuntary bankruptcy– and this is very important because in some cases a lot of people don’t become aware that others can declare them bankrupt– and that if this happens you have particular rights and’ responsibilities attached.
Involuntary bankruptcy takes place when an individual you owe money to calls for the court to declare you insolvent. This will result in you being given with a notice that, usually when you get one of these types of notices, you have 21 days to pay all the financial debt. If you do not, then the creditor returns to the court and asks the court to provide a sequestration order that proclaims you bankrupt. During the course of this time you will have a brief window in which you can dispute and put your case forward as to the reason why it should not proceed to the next degree and why you ought to not be declared bankrupt. Once the determination has been made, you will be insolvent and experiencing the same measures as individuals who took that path voluntarily.
Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of even more stress, worry and concern because other people are taking control of your life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you believe that it could happen, get qualified advice on bankruptcy as early as feasible, even if you are just stressed over bills and fear that it might continue to escalate. I am sure that you can envision that it is better to recognize what you can and can’t do before being pushed into that scenario. Once you are insolvent, it’s usually far too late to take steps.
Well if you have been declared insolvent, you will not really have many choices but to move through the process and you will certainly want to get expert guidance to make sure you are declaring properly, not breaking any rules, and will have the bankruptcy discharged as soon as achievable.
The bright side is that in Australia the arrangements for bankruptcy are actually quite generous: you can go bankrupt 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 rather good.
I don’t pretend to know why that is, but a couple of hundred years ago debtors went to prison. These days I presume the government thinks that the quicker it can get you back on your feet working and paying off income taxes, the better. It makes much more sense than locking you up which costs the taxpayer regardless.
Going bankrupt will wipe away the vast majority of your several financial debts, (including tax debts to the ATO) but bear in mind 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 could be said about this and Bankruptcy generally so when getting some guidance, keep in mind that there are often options when it involves Bankruptcy in Cairns, so do some groundwork, and good luck!
If you wish to find out more about exactly what to do, where to turn and what questions to ask about Bankruptcy, then don’t hold off to get in contact with Bankruptcy Experts Cairns on 1300 795 575, or visit our website: www.bankruptcyexpertscairns.com.au.