When it comes to
Bankruptcy Mackay, commonly people
aren't aware that there are both voluntary, and involuntary bankruptcy - each
have distinct approaches and guidelines.
Involuntary
bankruptcy arises when a person 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 returns to the
court and asks the court to provide a sequestration order that declares you
bankrupt. A trustee is assigned, and then you have 14 days to get the documents
in and then you are bankrupt.
You can
challenge 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. 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 overseen to in the very same way.
However, when it
comes to Bankruptcy for this, the stress and anxiety, torment and fear that
accompanies this process is incredible. If you think you are prone to be made
bankrupt by someone, get some assistance 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
someone else bankrupt you. Once you are bankrupt, it's usually too late.
Voluntary Bankruptcy
Nevertheless,
when it comes to Bankruptcy, sometimes there are moments that it is the most
ideal option. So you may want 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 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 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 fail to
remember 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 sit on your
file for 5 years, so for $30 you can have your credit file very seriously damaged
for that period of time - and all of this will affect how you have to approach Bankruptcy.
In many ways,
the ease with which companies/credit providers can default your credit file is
unjustifiable. 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, keep in mind that
bankruptcy is on your credit file for a total 7 years then its rubbed out
completely.
So if your
credit rating is a big element 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 pay back 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 part most people are afraid of when they come to me to
talk about their financial situation and Bankruptcy. The other side of crime
and punishment equation is bankruptcy, and in this specific 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 very good.
I don't claim to
know why that is but a couple of hundred years ago debtors went to prison.
These days 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 in turn 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 insured.
There is much
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 available options.
When getting some advice, keep in mind that there are always choices when it
involves Bankruptcy in Mackay, so do some homework, 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 feel free to contact Bankruptcy Experts Mackay on 1300 795 575,
or visit our website:bankruptcyexpertsMackay.com.au.