When it comes to
Bankruptcy Maitland, generally
people aren't aware that there can be both voluntary, and involuntary
bankruptcy - each have distinct methods and policies.
Involuntary bankruptcy
takes place when somebody you owe money to applies to the court to declare you
bankrupt. Usually when you get one of those notices, you have normally 21 days
to pay all the debt. If you do not, then the creditor returns 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
after that you are bankrupt.
You can object
to a bankruptcy notice by going to court following the 21 days have expired and
put your case forward, to avoid it going to the next level. Apart from the way
you became bankrupt there is in reality no difference between Involuntary
Bankruptcy and or Voluntary Bankruptcy - once you are declared bankrupt,
they're conducted to in the very 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 tips and act on that advice. Generally I've found
it's always much better to know what you can and can't do before you have
someone bankrupt you. Once you are bankrupt, it's typically far too late.
Voluntary Bankruptcy
Nevertheless,
when it comes to Bankruptcy, sometimes there are moments that it is the most
effective option. So you may have to ask yourself, 'when should I consider
voluntary Bankruptcy?'.
This question is
not the very same for everyone of course, but typically 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 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 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 need to approach Bankruptcy.
In many ways,
the ease with which companies/credit providers can default your credit file is
vicious. The punishment doesn't seem to equate to 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 wiped off
completely.
So if your
credit rating is a big aspect in trying to decide whether to enter into 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 contrast is that
with a DA or PIA you repay the money and nevertheless have it on your file for
7 years.
Bankruptcy
I have stated
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 over with no strings attached. Compared to countries like the United
States, our bankruptcy laws are quite good.
I don't claim to
know why that is but a few hundred years ago debtors went to prison. Nowadays I
suppose the government assumes 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 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 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 available options. When getting
some advice, keep in mind that there are always alternatives when it concerns Bankruptcy
in Maitland, so do some groundwork, and Good luck!
If you would
like to find out more about exactly what to do, where to turn and what
questions to ask about Bankruptcy, then feel free to consult with Bankruptcy
Experts Maitland on 1300 795 575, or visit our website: bankruptcyexpertsMaitland.com.au.