Bankruptcy in Lismore– Voluntary or involuntary bankruptcy?

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Bankruptcy in Lismore– Voluntary or involuntary bankruptcy?

When it concerns Bankruptcy, there are 2 kinds of individuals– those who have made a decision to declare bankruptcy and those individuals declared bankrupt by others (Their creditors).

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When it comes to Bankruptcy in Lismore, typically lots of people aren’t conscious that there is both voluntary, and involuntary bankruptcy– and this is crucial because sometimes a lot of people don’t realise that others can declare them bankrupt– and that if this occurs you have particular rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy happens when a person you owe money to calls for the court to declare you insolvent. This will result in you being issued with a notice that, normally when you obtain one of these sorts of notices, you have 21 days to pay all the financial debt. If you do not, then the creditor goes back to the court and asks the court to provide a sequestration order that declares you bankrupt. During the course of this time you are going to have a brief window in which you can dispute and put your case forward as to the reason that it ought to not progress to the next degree and why you should not be declared bankrupt. Once the determination has been made, you will be insolvent and experiencing the same actions as people who took that path willingly.

Nonetheless, when it concerns Bankruptcy you can imagine that the involuntary process is full of far 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 feel that it might occur, get specialist recommendations on bankruptcy as soon as feasible, even if you are just worried about bills and fear that it might continue to escalate. I am sure that you can visualize that it is far better to understand what you can and can’t do before being pushed into that predicament. Once you are insolvent, it’s usually far too late to take steps.

What next?

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

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

I do not claim to understand why that is, but a couple of hundred years ago debtors went to prison. Nowadays I suppose the government finds that the sooner 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.

Insolvency will wipe away the vast bulk of your different financial obligations, (including tax debts to the ATO) but bear in mind 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 insured.

There is a lot more that can be said about this and Bankruptcy generally so if getting some guidance, keep in mind that there are always choices when it includes Bankruptcy in Lismore, so do some research, and good luck!

If you want 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 Lismore on 1300 795 575, or visit our website: www.bankruptcyexpertslismore.com.au.

By | 2016-10-17T07:36:36+00:00 October 17th, 2016|bankruptcy, blog|0 Comments

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