When it comes to
Bankruptcy Toowoomba, generally
people aren't aware that there can be both voluntary, and involuntary
bankruptcy - both of these have distinct methods and rules.
Involuntary bankruptcy
happens when someone you owe money to involves the court to declare you
bankrupt. Commonly when you get one of these particular notices, you have 21
days to pay all the debt. If you don't, then the creditor goes back to the
court and requests the court to issue a sequestration order that declares you
bankrupt. A trustee is selected, and then you have 14 days to get the paperwork
in and afterwards you are bankrupt.
You can object
to a bankruptcy notice by going to court right after the 21 days have expired
and put your case forward, to prevent it going to the next level. Other than
the way you became bankrupt there is in reality no difference between
Involuntary Bankruptcy and or Voluntary Bankruptcy - once you are simply
declared bankrupt, they're conducted to in the same way.
However, when it
concerns Bankruptcy for this, the stress, torment and fear that accompanies
this process is incredible. If you think you are probable to be made bankrupt
by someone, get some tips and act on that advice. Generally I've found it's
always more ideal to know what you can and can't do before you have an
individual bankrupt you. Once you are bankrupt, it's typically far too late.
Voluntary Bankruptcy
On the other
hand, when it comes to Bankruptcy, sometimes there are moments that it is the
most effective option. So you may need to ask yourself, 'when should I consider
voluntary Bankruptcy?'.
This question is
not the same for everybody of course, but usually I find that one way you could
work it out is to figure out just how long it will take you to pay every one of
your debts - if its longer than 3 years (the period you are declared bankrupt),
then this may serve to help you make that decision, and help you to understand Bankruptcy.
Once, I had an
80 year old pensioner, who came to me once regarding * Bankrupcty tell me that
her credit card statement calculated how long her debt would take to pay at the
level she was paying off her account, and it was 35 years! Imagine 35 years for
one credit card bill.
Credit rating
damage can help you think this through. If you move house and overlook to pay
your $30 phone bill for 6 months more, it's very likely the telephone company
will default your credit file. That default will remain on your file for 5
years, so for $30 you can have your credit file seriously damaged for that
period of time - and all of this will impact how you have to approach Bankruptcy.
In many ways,
the ease with which companies/credit providers can default your credit file is
unscrupulous. The punishment doesn't seem to equate to the crime in my book. So
if you already have defaults on your credit report for 5 years, remember that
bankruptcy is on your credit file for a total 7 years then its wiped off
completely.
So if your
credit rating is a big detail in trying to decide whether to take part in a
Debt Agreement or Personal Insolvency Agreement or Bankruptcy remember they
will all sit on your credit file for a total of 7 years. The biggest change is
that with a DA or PIA you pay back the money and still have it on your file for
7 years.
Bankruptcy
I have talked
about the word a few times now, but when it comes down to it, Bankruptcy is the
biggest part, and the element more people are afraid of when they come to me to
discuss their financial situation and Bankruptcy. The other side of crime and
punishment equation is bankruptcy, and in this specific country the
arrangements are very generous: you can go bankrupt owing millions of dollars
and after 3 years it's all over with no strings attached. Compared to countries
like the United States, our bankruptcy laws are extremely good.
I don't pretend
to know why that is but a few hundred years ago debtors went to prison. These
days 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 anyway.
Bankruptcy wipes
all of your debts including ATO debts except for a few things:
·
Centrelink Debts, Court Fines
like parking and speeding fines.
·
HECS or Fee Help loans.
·
Money to pay for a car accident
if the car was not actually insured.
There is much
more that can be said about this and Bankruptcy in general but the purpose of
this blog was to help you decide between a few readily available options. When
getting some advice, bear in mind that there are always choices when it relates
to Bankruptcy in Toowoomba, so do some research, and Good luck!
If you want to
find out more about just what to do, where to turn and what questions to ask
about Bankruptcy, then don't hesitate to consult with Bankruptcy Experts
Toowoomba on 1300 795 575, or visit our website:
www.bankruptcyexpertsToowoomba.com.au.