When it comes to Bankruptcy, there are 2 kinds of people– people who have decided to declare bankruptcy and those individuals declared bankrupt by others (Their creditors).

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When it comes to Bankruptcy in Gold Coast, normally people aren’t aware that there could be both voluntary, and involuntary insolvency– and this is crucial because often a lot of people don’t know that others can declare them insolvent– and also if this happens you have certain rights and’ responsibilities attached.

Involuntary bankruptcy:

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, 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 lender goes back to the court and asks the court to provide a sequestration order that proclaims you bankrupt. During this time you will have a short window in which you can dispute and put your case forward as to why it should not progress to the next degree and the reason why you ought to not be declared bankrupt. Once the determination has been made, you will be bankrupt and experiencing the same actions as those who took that path voluntarily.

Having said that, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of even more stress and anxiety, worry and fear since other people are taking control of your way of life. My biggest idea with Bankruptcy and involuntary bankruptcy is that if you think that it could take place, get specialist advice on bankruptcy as quickly as feasible, 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 much better to recognize what you can and can’t do before getting pushed into that circumstance. Once you are bankrupt, it’s generally far too late to take action.

What next?

Well if you have been declared bankrupt, you won’t really have too many alternatives but to move through the process and you will want to get professional suggestions to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as quickly as feasible.

Fortunately is that in Australia the arrangements for bankruptcy are actually very generous: you could declare bankruptcy owing millions of dollars and after 3 years it’s all completed with no strings attached. Compared to countries like the United States, our insolvency laws are rather good.

I don’t pretend to know why that is, but a couple of hundred years ago debtors went to jail. Nowadays I presume the government believes that the quicker 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.

Going bankrupt will clear away the huge majority of your several debts, (including tax debts to the ATO) but remember the few exceptions- the primary 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 a lot more that might be stated about this and Bankruptcy in general so if getting some guidance, keep in mind that there are always options when it includes Bankruptcy in Gold Coast, so do some research, and good luck!

If you wish to find out more about exactly what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hesitate to get in touch with Bankruptcy Experts Gold Coast on 1300 795 575, or visit our website: www.bankruptcyexpertsgoldcoast.com.au.