Just what Debts are cleared away if I go Bankrupt?
The simple answer is that when it involves Filing For Bankruptcy most debts are wiped, and I have included a chart below for you to look at.
But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) along with any debts arising from uninsured Motor-vehicle claims and educational debts for example, HECS or FEE-HELP. These debts are not eliminated when you file for bankruptcy.
What about Secured Debts?
A secured debt is a car loan or a home loan; it is a debt that has some absolute security connected to it. So for example if you buy a new car for $40,000 dollars the security for that car is the actual car itself.
So, can my secured debts be erased if I file for bankruptcy?
Yes. If you have a car loan for $40,000 you can have that debt wiped out if you simply return the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts might be wiped but the asset has to be sold or returned. This is just one part that, when it comes to Filing For Bankruptcy, it is vital to get professional help – like that provided at Bankruptcy Experts Lismore.
What about my Tax Debts with the ATO can they be cleared away If I go bankrupt?
Yes they can, both business and personal debts owing to the ATO can be removed with bankruptcy. If you have a business with any type of debts receive some advice because it is not always so self-explanatory. Feel free to call us here at Bankruptcy Experts Lismore if you have any questions on 1300 795 575. Or feel free to head to our website: www.bankruptcyexpertsLismore.com.au
What about my business or Company debts?
In some cases when it involves Filing For Bankruptcy we can help you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Typically you may need to liquidate a company to deal with the debt this way. When it comes to Filing For Bankruptcy, it can be a complicated area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Experts Lismore we specialise in business and personal debts so contact us here at Bankruptcy Experts Lismore if you have any questions regarding Filing For Bankruptcy on 1300 795 575. Or feel free to explore our website: www.bankruptcyexpertsLismore.com.au