When it comes to Bankruptcy, there are 2 sorts of individuals– people who have chosen to declare bankruptcy and people declared bankrupt by others (Their creditors).

When it comes to Bankruptcy in Brisbane, typically people aren’t aware that there is both voluntary, and involuntary bankruptcy– and this is crucial because at times 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 lead to you being issued with a notice that, typically when you obtain one of these kinds 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 supply a sequestration order that declares you insolvent. During the course of this time you will have a brief window where you can dispute and put your case forward as to why it really should not advance to the next degree and why you should not be declared insolvent. Once the determination has been made, you will be bankrupt and experiencing the same steps as those who took that path freely.

However, when it concerns Bankruptcy you can picture that the involuntary process is full of far more stress, worry and fear because other people are taking control of your life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you feel that it could take place, get specialist recommendations on bankruptcy as quickly as feasible, even if you are just worried about financial debt and fear that it could continue to escalate. I am sure that you can envision that it is much better to recognize what you can and can’t do before getting forced into that scenario. Once you are insolvent, it’s generally far too late to act.

What next?

Well if you have been declared insolvent, you will not really have many options but to move through the experience and you will certainly want to get expert advice to make sure you are declaring correctly, not breaking any rules, and will have the bankruptcy discharged as early as feasible.

The bright side is that in Australia the arrangements for bankruptcy are really very generous: you can easily go bankrupt owing millions of dollars and after 3 years it’s all finished with no strings attached. Compared to nations like the United States, our bankruptcy 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 thinks that the sooner it can get you back on your feet working and paying income taxes, the better. It makes much more sense than locking you up which costs the taxpayer anyway.

Personal bankruptcy will clear away the huge bulk of your different debts, (including tax debts to the ATO) but always remember the few exemptions- 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 could be stated about this and Bankruptcy as a whole so if getting some guidance, remember that there are often alternatives when it includes Bankruptcy in Brisbane, so do some groundwork, and good luck!

If you want to find out more about precisely 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 Brisbane on 1300 795 575, or visit our website: www.bankruptcyexpertsbrisbane.com.au.