When it comes to
Bankruptcy Mildura, often people
aren't aware that there are both voluntary, and involuntary bankruptcy - both
of these have different approaches and policies.
Involuntary bankruptcy
arises when a person you owe money to applies to the court to declare you
bankrupt. Normally when you get one of these 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 documentation in and 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 prevent 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 managed to in the 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 probable to be
made bankrupt by someone, get some tips 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 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 have to ask yourself, 'when should I consider
voluntary Bankruptcy?'.
This question is
not the very same for each person 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
each of your debts - if its longer than 3 years (the period you are declared
bankrupt), then this may assist you make that decision, and help you to
understand Bankruptcy.
Once, I had an
80 year old pensioner, who spoke 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 really 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 phone
service 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 impact how you have to approach Bankruptcy.
In many ways,
the ease with which companies/credit providers can default your credit file is
unfair. The punishment doesn't seem to match 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 erased
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 contrast
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 mentioned
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 go
over their financial situation and Bankruptcy. The other side of crime and
punishment equation is bankruptcy, and in this specific country the
arrangements are very generous: you can go bankrupt owing millions of dollars
and after 3 years it's all finished with no strings attached. Compared to
countries like the United States, our bankruptcy laws are extremely reasonable.
I don't pretend
to know why that is but a few hundred years ago debtors went to prison. These
days I suppose the government believes 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 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 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 possible options.
When getting some advice, don't forget that there are always alternatives when
it involves Bankruptcy in Mildura, so do some legwork, and Good luck!
If you want to
learn more about exactly what to do, where to turn and what questions to ask
about Bankruptcy, then feel free to speak to Bankruptcy Experts Mildura on 1300
795 575, or visit our website:bankruptcyexpertsMildura.com.au.