- Aug 23, 2016
Which Debts are eliminated if I go Bankrupt?
The simple answer is that when it concerns Filing For Bankruptcy most debts are wiped, and I have also included a summary below for you to look at.
But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) and even any debts arising from uninsured Motor-vehicle claims and educational debts which include HECS or FEE-HELP. These debts are not wiped out when you file for bankruptcy.
What about Secured Debts?
A secured debt is a vehicle loan or a home loan; it is a debt that has some absolute security connected to it. So for instance if you buy a new car for $40,000 dollars the security for that car is the actual car itself.
So, can my secured debts be erased if I file for bankruptcy?
Yes. If you have a car loan for $40,000 you can have that debt eliminated if you simply return the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts may be wiped but the asset will need to be sold or returned. This is just one aspect that, when it comes to Filing For Bankruptcy, it is important to get professional guidance – like that available at Bankruptcy Experts Cairns.
What about my Tax Debts with the ATO can they be eliminated If I go bankrupt?
Yes they can, both business and personal debts owing to the ATO can be eliminated with bankruptcy. If you have a business with any form of debts get some advice because it is not always so easy. Feel free to call us here at Bankruptcy Experts Cairns if you have any questions on 1300 795 575. Or feel free to head to our website: www.bankruptcyexpertsCairns.com.au
What about my business or Company debts?
In some cases when it involves Filing For Bankruptcy we can aid you with your business debts, call us concerning this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Typically you may have to liquidate a company to deal with the debt this way. And when it comes to Filing For Bankruptcy, it can be a confusing area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Experts Cairns we specialise in business and personal debts so call us here at Bankruptcy Experts Cairns if you have any questions about Filing For Bankruptcy on 1300 795 575. Or feel free to explore our website: www.bankruptcyexpertsCairns.com.au