Bankruptcy in Hobart– Voluntary or involuntary bankruptcy?

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Bankruptcy in Hobart– Voluntary or involuntary bankruptcy?

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

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When it comes to Bankruptcy in Hobart, normally lots of people aren’t aware that there can be both voluntary, and involuntary bankruptcy– and this is very important because often a lot of people don’t know that others can declare them bankrupt– and that if this develops you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when an individual you owe money to involves the court to declare you insolvent. 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 provide a sequestration order that declares you insolvent. During the course of this time you are going to have a brief window in which you can dispute and put your case forward concerning why it ought to not advance to the next degree and the reason why you ought to not be declared insolvent. Once the decision has been made, you will be bankrupt and experiencing the same measures as individuals who took that path freely.

Nonetheless, when it concerns Bankruptcy you can imagine 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 biggest suggestion with Bankruptcy and involuntary bankruptcy is that if you believe that it might take place, get professional guidance on bankruptcy as early as feasible, even if you are just stressed over debt and fear that it could 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 circumstance. The moment you are bankrupt, it’s normally far too late to take action.

What next?

Well if you have been declared bankrupt, you will not really have too many alternatives but to move through the process and you will want to get qualified guidance to make sure you are declaring properly, not breaking any regulations, and will have the bankruptcy discharged as early as achievable.

The bright side is that in Australia the arrangements for bankruptcy are effectively quite generous: you could declare bankruptcy owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared with nations like the United States, our insolvency laws are rather good.

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

Going bankrupt will clear away the vast bulk of your different financial obligations, (including tax debts to the ATO) but 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 far more that might be said about this and Bankruptcy generally so if getting some advice, remember that there are often alternatives when it includes Bankruptcy in Hobart, so do some groundwork, and good luck!

If you wish 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 touch with Bankruptcy Experts Hobart on 1300 795 575, or visit our website: www.bankruptcyexpertshobart.com.au.

By | 2016-10-17T23:12:41+00:00 October 17th, 2016|Bankrupt, blog|0 Comments

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