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

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When it comes to Bankruptcy in Perth, normally people aren’t aware that there can be both voluntary, and involuntary insolvency– and this is important because often a lot of people don’t realise that others can declare them insolvent– and also if this develops you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs when a person you owe money to involves the court to declare you bankrupt. This will lead to you being issued with a notice that, generally when you obtain one of these kinds of notices, you have 21 days to pay all the financial debt. If you don’t, then the creditor returns to the court and asks the court to provide a sequestration order that declares you bankrupt. Throughout this time you are going to have a short window where you can dispute and put your case forward concerning the reason that it ought to not proceed to the next level and why you ought to not be declared bankrupt. Once the determination has been made, you will be bankrupt and experiencing the same steps as those who took that path voluntarily.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of much more tension, worry and fear as other people are taking control of your life. My biggest tip with Bankruptcy and involuntary bankruptcy is that if you think that it could take place, get specialist recommendations on bankruptcy as quickly as feasible, even if you are just worried about debt and fear that it could continue to escalate. I am sure that you can envision that it is better to realise what you can and can’t do before being pushed into that scenario. Once you are insolvent, it’s generally far too late to act.

What next?

Well if you have been declared insolvent, you won’t really have too many alternatives but to move through the experience and you will want to get competent recommendations to make sure you are declaring properly, not breaking any rules, and will have the bankruptcy discharged as early as feasible.

The bright side is that in Australia the arrangements for bankruptcy are really very generous: you can easily go bankrupt 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 claim to understand why that is, but a couple of hundred years ago debtors went to jail. These days I presume the government thinks that the earlier it can get you back on your feet working and paying income taxes, the better. It makes much more sense than locking you up which costs the taxpayer regardless.

Bankruptcy will wipe away the vast majority of your different debts, (including tax debts to the ATO) but keep in mind the few exemptions- 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 much more that might be explained about this and Bankruptcy in general so when obtaining some advice, keep in mind that there are always options when it includes Bankruptcy in Perth, so do some research, and good luck!

If you wish to learn 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 Perth on 1300 795 575, or visit our website: Bankruptcy Perth