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

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When it comes to Bankruptcy in Rockhampton, normally people aren’t aware that there could be both voluntary, and involuntary bankruptcy– and this is crucial because often a lot of people don’t know that others can declare them bankrupt– and also if this develops you have particular rights and’ responsibilities attached.

Involuntary bankruptcy:

Involuntary bankruptcy takes place when a person 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 get one of these kinds of notices, you have 21 days to pay all the financial debt. If you don’t, then the lender goes back to the court and asks the court to supply a sequestration order that declares you bankrupt. During the course of this time you will have a short window where you can dispute and put your case forward concerning why it should not advance to the next degree and why you should not be declared bankrupt. But once the decision has been made, you will be bankrupt and going through the same steps as those who took that path freely.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of even more stress, worry and concern since other people are taking control of your life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you believe that it may take place, get specialist recommendations on bankruptcy as soon as possible, even if you are just stressed over financial debt and fear that it might continue to escalate. I am sure that you can picture that it is far better to know what you can and can’t do before being pushed into that situation. Once you are bankrupt, it’s normally 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 process and you will want to get competent suggestions to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as quickly as achievable.

The good news is that in Australia the arrangements for bankruptcy are really generous: you can easily declare bankruptcy 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 quite good.

I do not pretend to know why that is, but a couple of hundred years ago debtors went to jail. These days I presume the government finds that the quicker it can get you back on your feet working and paying off tax, the better. It makes more sense than locking you up which costs the taxpayer regardless.

Bankruptcy will clear away the huge bulk of your various financial obligations, (including tax debts to the ATO) but 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 a lot more that might be stated about this and Bankruptcy in general so if getting some advice, remember that there are often choices when it includes Bankruptcy in Rockhampton, so do some research, 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 touch with Bankruptcy Experts Rockhampton on 1300 795 575, or visit our website: www.bankruptcyexpertsrockhampton.com.au.