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

Bankruptcy Experts, Going Bankrupt in Port Stephens, Insolvency Port Stephens, Bankruptcy Port Stephens

When it comes to Bankruptcy in Port Stephens, normally lots of people aren’t aware that there is both voluntary, and involuntary insolvency– and this is crucial because at times individuals don’t understand that others can declare them insolvent– and that if this develops you have particular rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when an individual you owe money to involves the court to declare you bankrupt. This will lead to you being given with a notice that, usually when you obtain one of these sorts of notices, you have 21 days to pay all the 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. Throughout this time you are going to have a short window wherein you can argue and put your case forward concerning the reason why it should not progress to the next level and the reason why you should not be declared bankrupt. Once the decision has been made, you will be insolvent and experiencing the same procedures as those who took that path freely.

Nonetheless, when it concerns Bankruptcy you can picture that the involuntary procedure is full of much more stress and anxiety, worry and concern because other people are taking control of your way of life. My most important idea with Bankruptcy and involuntary bankruptcy is that if you think that it might happen, get expert advice on bankruptcy as quickly as possible, even if you are just stressed over bills and fear that it might continue to escalate. I am sure that you can visualize that it is much better to realise what you can and can’t do before being forced into that situation. The moment you are bankrupt, it’s normally far too late to take action.

What next?

Well if you have been declared insolvent, you will not really have many alternatives but to move through the experience and you will definitely want to get qualified advice to make sure you are declaring correctly, not breaking any guidelines, and will have the bankruptcy discharged as quickly as achievable.

The bright side is that in Australia the arrangements for bankruptcy are effectively very generous: you can easily go bankrupt owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared to countries like the United States, our bankruptcy laws are rather good.

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

Going bankrupt will clear away the huge bulk of your several debts, (including tax debts to the ATO) but always 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 much more that could be stated about this and Bankruptcy generally so if getting some guidance, keep in mind that there are often choices when it involves Bankruptcy in Port Stephens, so do some research, and good luck!

If you wish to find out more about precisely what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hold off to get in contact with Bankruptcy Experts Port Stephens on 1300 795 575, or visit our website: www.bankruptcyexpertsportstephens.com.au.

Bankruptcy in Port Stephens– Voluntary or involuntary bankruptcy?