When it comes to
Bankruptcy Brisbane, generally
people aren't aware that there can be both voluntary, and involuntary
bankruptcy - both have different methods and rules.
Involuntary
bankruptcy arises when a person you owe money to applies to the court to
declare you bankrupt. Generally 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 appointed, and then you have 14 days to get
the documents in and after that you are bankrupt.
You can contest
a bankruptcy notice by going to court immediately 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 fact no distinction between Involuntary
Bankruptcy and or Voluntary Bankruptcy - once you are simply declared bankrupt,
they're administered to in the same way.
However, when it
concerns Bankruptcy for this, the stress and anxiety, torment and fear that
accompanies this method is incredible. If you think you are prone to be made
bankrupt by someone, get some guidance and act on that advice. Generally I've
found it's always more effective to know what you can and can't do before you
have somebody bankrupt you. Once you are bankrupt, it's usually too late.
Voluntary Bankruptcy
On the other
hand, when it comes to Bankruptcy, sometimes there are times 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 very same for every person of course, but usually I find that one way
you could work it out is to figure out 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 really 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 forget to pay
your $30 phone bill for 6 months more, it's very likely the phone 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 affect how you need to approach Bankruptcy.
In many ways,
the ease with which companies/credit providers can default your credit file is
unjust. The punishment doesn't seem to equal the crime in my book. So if you
actually have defaults on your credit report for 5 years, remember that
bankruptcy is on your credit file for a total 7 years then its erased
completely.
So if your
credit rating is a big aspect in trying to decide whether to participate 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 repay the money and nevertheless 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 most 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 country the arrangements are
very generous: you can go bankrupt owing millions of dollars and after 3 years
it's all finished with no strings attached. Compared with countries like the
United States, our bankruptcy laws are quite generous.
I don't pretend
to know why that is but a couple of hundred years ago debtors went to prison.
Nowadays I suppose the government thinks 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
every one 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 take care of a car
accident if the car was not insured.
There is a lot
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, remember that there are always choices when it concerns Bankruptcy
in Brisbane, so do some investigation, and Good luck!
If you would
like to learn more about what to do, where to turn and what questions to ask
about Bankruptcy, then feel free to contact Fresh Start Solutions Brisbane on
1300 818 575, or visit our website: freshstartsolutions.com.au/bankruptcy-Brisbane
