When it concerns Bankruptcy, there are 2 types of people– those who have decided to declare bankruptcy and those declared bankrupt by others (Their creditors).
When it comes to Bankruptcy in Darwin, typically lots of people aren’t conscious that there could be both voluntary, and involuntary bankruptcy– and this is crucial because at times people don’t understand that others can declare them insolvent– and also if this develops you have particular rights and’ obligations attached.
Involuntary bankruptcy occurs when a person you owe money to involves the court to declare you insolvent. This will lead to you being issued with a notice that, generally when you get 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 provide a sequestration order that proclaims you insolvent. During this time you are going to have a short window wherein you can argue and put your case forward concerning exactly why it really should not proceed to the next degree and the reason why you ought to not be declared insolvent. But once the decision has been made, you will be insolvent and going through the same actions as individuals who took that path willingly.
Having said that, when it concerns Bankruptcy you can picture that the involuntary procedure is full of even more strain, worry and concern since other people are taking control of your entire life. My most important tip with Bankruptcy and involuntary bankruptcy is that if you think that it could take place, get specialist guidance on bankruptcy as early as possible, even if you are just worried about bills and fear that it could continue to escalate. I am sure that you can imagine that it is much better to realise what you can and can’t do before being pushed into that situation. The moment you are bankrupt, it’s usually far too late to act.
Well if you have been declared bankrupt, you won’t really have too many options but to move through the experience and you will definitely want to get qualified guidance to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as quickly as feasible.
The good news is that in Australia the arrangements for bankruptcy are actually very generous: you could 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 rather good.
I don’t pretend to understand why that is, but a couple of hundred years ago debtors went to prison. These days I presume the government thinks that the faster it can get you back on your feet working and paying off tax obligations, the better. It makes much more sense than locking you up which costs the taxpayer in any case.
Going bankrupt will clear away the vast majority of your different financial 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 far more that can be stated about this and Bankruptcy as a whole so when getting some guidance, remember that there are always alternatives when it includes Bankruptcy in Darwin, so do some groundwork, 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 touch with Bankruptcy Experts Darwin on 1300 795 575, or visit our website: www.bankruptcyexpertsdarwin.com.au.