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When it concerns Bankruptcy, there are 2 kinds of people– those who have decided to declare bankruptcy and people declared insolvent by others (Their creditors).

When it comes to Bankruptcy in Gladstone, normally lots of people aren’t conscious that there can be both voluntary, and involuntary bankruptcy– and this is very important because at times a lot of people don’t realise that others can declare them insolvent– and that if this occurs you have certain rights and’ obligations attached.

Involuntary bankruptcy:

Involuntary bankruptcy occurs when an individual you owe money to involves the court to declare you bankrupt. This will lead to you being given with a notice that, typically when you obtain one of these kinds of notices, you have 21 days to pay all the debt. If you don’t, then the lender goes back to the court and asks the court to provide a sequestration order that proclaims you insolvent. During this time you will have a brief window wherein you can dispute and put your case forward concerning the reason that it should not proceed to the next degree and the reason why you should not be declared insolvent. Once the decision has been made, you will be insolvent and experiencing the same measures as people who took that path willingly.

However, when it concerns Bankruptcy you can imagine that the involuntary procedure is full of much more tension, worry and fear because other people are taking control of your entire life. My biggest tip with Bankruptcy and involuntary bankruptcy is that if you believe that it may occur, get professional advice on bankruptcy as early as feasible, even if you are just stressed over debt and fear that it might continue to escalate. I am sure that you can picture that it is better to recognize what you can and can’t do before getting pushed into that situation. Once you are insolvent, it’s ordinarily far too late to act.

What next?

Well if you have been declared bankrupt, you won’t really have numerous options but to move through the experience and you will definitely want to get professional recommendations to make sure you are declaring properly, not breaking any guidelines, and will have the bankruptcy discharged as early as feasible.

The bright side is that in Australia the arrangements for bankruptcy are actually really generous: you can go bankrupt owing millions of dollars and after 3 years it’s all completed 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 couple of hundred years ago debtors went to prison. These days I suppose the government finds that the earlier it can get you back on your feet working and paying off tax, the better. It makes much more sense than locking you up which costs the taxpayer anyway.

Insolvency will clear away the huge bulk of your different debts, (including tax debts to the ATO) but always remember the few exceptions- the primary ones being Centrelink Debts, Court Fines like parking and speeding fines, HECS or Fee Help loans, and money to pay for a car accident if the car was not covered.

There is much more that can be explained about this and Bankruptcy in general so if obtaining some guidance, remember that there are often options when it includes Bankruptcy in Gladstone, so do some research, and good luck!

If you want to learn more about exactly what to do, where to turn and what inquiries to ask about Bankruptcy, then don’t hold off to get in touch with Bankruptcy Experts Gladstone on 1300 795 575, or visit our website: