What Debts Are Removed By Bankruptcy?
So just how much will really be eliminated? What debts will I still be left with? Is Bankruptcy really going to help me get a fresh start?
When it relates to Bankruptcy in Melbourne I often have people either stressed that their debt won’t be eliminated, or will have no idea that bankruptcy does not really pay for every little thing. So before you get too caught up with Bankruptcy please make sure that the kind of financial debt you have is truly one that Bankruptcy will wipe clean!
As a whole, when it comes to Bankruptcy, most debts are wiped out, but I have produced an useful table to help you out:
So as you can observe, a number of the exemptions are Centrelink Debts, Child Support, Court fines (like speeding penalties) and any debts arising from uninsured Motor-vehicle claims and academic debts which include HECS or FEE-HELP. These financial obligations are not cleared away when you apply for bankruptcy.
But what happens with Bankruptcy and Secured Debts?
A secured debt is unpaid debt that has some kind of security connected to the loan– such as a car or house mortgage where the property is the security– the big difference with these kinds of financial debts is that whenever you eliminate them you will lose the security.
So if you possess a $30,000 vehicle loan, you can remove the liability through insolvency by simply giving the car back. That is just one aspect that, when it comes to Bankruptcy, it is necessary to get specialist assistance – like that supplied at Bankruptcy Experts Melbourne since it just isn’t always as simple, but you need to be realistic and consider that you can not always retain the asset. Feel free to contact us at Bankruptcy Experts Melbourne if you have any kind of queries on 1300 795 575. Or feel free to visit our website: www.bankruptcyexpertsmelbourne.com.au
What about my business or Company debts?
In many cases when it involves Bankruptcy we can assist you with your business liabilities, call us concerning this first. Don’t forget bankruptcy applies to an individual not companies, trusts or businesses. Usually you may have to liquidate a company to deal with the financial debt this way. When it concerns Bankruptcy, it could be an intricate area, so always remember there are effects for a local business owner including insolvent trading.
So what about Tax Debts?
Both business and personal financial obligations owing to the ATO can be eliminated with insolvency. If you have a business with any type of debt get some guidance because it is not often so easy when it comes to Bankruptcy because every debt is going to be varied and that will affect the degree that it could be removed, and the effects it will have for Bankruptcy.
At Bankruptcy Experts Melbourne we specialise in business and personal financial debts and can better explain the exceptions to bankruptcy and what this will mean for you and your debts. So call Bankruptcy Experts Melbourne if you have any queries concerning Bankruptcy on 1300 795 575. Or don’t hesitate to go to our website: www.bankruptcyexpertsmelbourne.com.au