Voluntary or Involuntary Bankruptcy?
When it involves Bankruptcy, there are 2 types of individuals– people who have chosen to declare bankruptcy and people declared bankrupt by others (Their creditors).
When it comes to Bankruptcy in Melbourne, normally lots of people aren’t conscious that there could be both voluntary, and involuntary insolvency– and this is important because at times people don’t realise that others can declare them bankrupt– and that if this develops 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 issued with a notice that, normally when you obtain one of these kinds of notices, you have 21 days to pay all the financial debt. If you do not, then the creditor goes back to the court and asks the court to supply a sequestration order that proclaims you bankrupt. During this time you will have a short window wherein you can dispute and put your case forward concerning the reason why it really should not proceed to the next degree and the reason why you should not be declared insolvent. Once the determination has been made, you will be insolvent and experiencing the same actions as individuals who took that path voluntarily.
Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary process is full of even more strain, worry and concern because other people are taking control of your entire life. My biggest suggestion with Bankruptcy and involuntary bankruptcy is that if you believe that it might occur, get expert advice 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 imagine that it is far better to know what you can and can’t do before being pushed into that predicament. The moment you are bankrupt, it’s normally far too late to act.
Well if you have been declared bankrupt, you will not really have numerous choices but to move through the experience and you will certainly want to get expert advice to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as quickly as feasible.
The bright side is that in Australia the arrangements for bankruptcy are effectively quite generous: you can go bankrupt owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared with countries like the United States, our insolvency laws are quite good.
I do not claim to know why that is, but a couple of hundred years ago debtors went to jail. In these times I suppose the government believes that the earlier it can get you back on your feet working and paying tax, 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 several financial obligations, (including tax debts to the ATO) but bear in mind 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 insured.
There is far more that might be stated about this and Bankruptcy in general so if obtaining some advice, bear in mind that there are always choices when it involves Bankruptcy in Melbourne, so do some research, 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 hesitate to get in contact with Bankruptcy Experts Melbourne on 1300 795 575, or visit our website: www.bankruptcyexpertsmelbourne.com.au.