When it comes to
Bankruptcy Gold Coast, normally
people aren't aware that there may be both voluntary, and involuntary
bankruptcy - both have unique methods and policies.
Involuntary bankruptcy
arises when somebody you owe money to applies to the court to declare you
bankrupt. Normally when you get one of these types of notices, you have
normally 21 days to pay all the debt. If you do not, then the creditor returns
to the court and asks 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 after that you are bankrupt.
You can contest
a bankruptcy notice by going to court right after the 21 days have expired and
put your case forward, to stop 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 declared bankrupt,
they're managed to in the exact same way.
However, when it
comes to Bankruptcy for this, the stress and anxiety, torment and fear that
accompanies this method is incredible. If you think you are in all likelihood
to be made bankrupt by someone, get some guidance and act on that advice.
Generally I've found it's always better to know what you can and can't do
before you have someone bankrupt you. Once you are bankrupt, it's usually far
too late.
Voluntary Bankruptcy
On the other
hand, when it comes to Bankruptcy, sometimes there are moments that it is the
most ideal option. So you may have 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 just how long it will take you to pay
each 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 her account, and it was 35 years! Imagine 35 years for one
credit card bill.
Credit rating
damage can really 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 sit 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 need 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 equal the crime in my book. So if
you currently have defaults on your credit report for 5 years, keep in mind
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 aspect 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 difference
is that with a DA or PIA you repay the money and nevertheless have it on your
file for 7 years.
Bankruptcy
I have mentioned
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
review their financial situation and Bankruptcy. The other side of crime and
punishment equation is bankruptcy, and in this country the provisions 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 very reasonable.
I don't pretend
to know why that is but a couple of 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
every one of your debts including ATO debts with the exception of 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 actually insured.
There is a lot
more that can be said about doing this and Bankruptcy in general but the
objective 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 options
when it involves Bankruptcy in Gold Coast, so do some legwork, and Good luck!
If you would
like to find out more about just what to do, where to turn and what questions
to ask about Bankruptcy, then don't hesitate to check with Bankruptcy Advice
Gold Coast on 1300 879 867, or visit our website:bankruptcy-advice.com.au/Gold
Coast.
