When it comes to
Bankruptcy Coffs Harbour, usually
people aren't aware that there are both voluntary, and involuntary bankruptcy -
both have different methods and guidelines.
Involuntary bankruptcy
occurs when somebody you owe money to involves the court to declare you
bankrupt. Normally when you get one of these kinds of 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 selected, and then you have 14 days to get the documents in then
afterwards 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 stop 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 managed to in the same way.
However, when it
comes to Bankruptcy for this, the stress, torment and fear that accompanies
this process is incredible. If you think you are in all likelihood to be made
bankrupt by someone, get some advice and act on that advice. Generally I've
found it's always far better to know what you can and can't do before you have
an individual bankrupt you. Once you are bankrupt, it's normally too late.
Voluntary Bankruptcy
Alternatively,
when it comes to Bankruptcy, sometimes there are times that it is the most
ideal option. So you may need to ask yourself, 'when should I consider
voluntary Bankruptcy?'.
This question is
not the very same for everyone of course, but commonly I find that one way you
could work it out is to figure out just how long it will take you to pay all 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
rate 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 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 need to approach Bankruptcy.
In many ways,
the ease with which companies/credit providers can default your credit file is
unethical. The punishment doesn't seem to match 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 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 variation
is that with a DA or PIA you pay back the money and still 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 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 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. As compared to countries like the United
States, our bankruptcy laws are really reasonable.
I don't claim to
know why that is but a few 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
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 take care of a car
accident if the car was not insured.
There is far
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 possible options. When getting
some advice, always remember that there are always possibilities when it
involves Bankruptcy in Coffs Harbour, so do some study, and Good luck!
If you wish to
learn more about just what to do, where to turn and what questions to ask about
Bankruptcy, then don't hesitate to talk to Bankruptcy Experts Coffs Harbour on
1300 795 575, or visit our website:bankruptcyexpertsCoffs Harbour.com.au.