So what amount will really be cleared away? What financial obligations will I still be left with? Is Bankruptcy actually going to help me get a fresh start?
When it relates to Bankruptcy in Australia I frequently have people either worried that their financial obligations won’t be taken away, or will have no idea that bankruptcy does not really cover everything. So before you get too caught up with Bankruptcy please make certain that the sort of personal debt you have is really one that Bankruptcy will wipe clean!
Overall, when it concerns Bankruptcy, most unpaid debts are erased, but I have developed a handy table to help you out:
So as you can observe, a few of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding penalties) and any debts occurring from uninsured Motor-vehicle claims and educational financial obligations such as HECS or FEE-HELP. These particular financial debts are not cleared away when you apply for insolvency.
But what happens with Bankruptcy and Secured Debts?
A secured debt is financial debt that has some type of security attached to the financing– such as a car or house mortgage where the property is the security– the big difference with these kinds of debts is that when you remove them you will lose the security.
So if you have a $30,000 vehicle loan, you can remove the liability through bankruptcy by simply giving the car back. This is just one facet that, when it concerns Bankruptcy, it is important to get expert assistance – like that offered at Bankruptcy Australia because it just isn’t always as simple, but you should be reasonable and remember that you can not always retain the possession. Don’t hesitate to contact us at Bankruptcy Australia if you have any type of questions on 1300 795 575. Or feel free to head to our website: www.bankruptcy-australia.com.au
What about my business or Company debts?
Sometimes when it features Bankruptcy we can assist you with your business debts, call us regarding this first. Bear in mind bankruptcy applies to an individual not companies, trusts or businesses. Usually you may have to liquidate a business to deal with the financial debt this way. And when it comes to Bankruptcy, it could be a tricky area, so remember there are effects for a business owner like insolvent trading.
So what about Tax Debts?
Both business and personal financial obligations owing to the ATO might be erased with bankruptcy. If you have a business with any kind of debt get some advice because it is not always so simple when it comes to Bankruptcy because every debt is going to be different and that will affect the degree that it could be removed, and the ramifications it will have for Bankruptcy.
At Bankruptcy Australia we are experts in business and personal financial debts and can better clarify the exemptions to bankruptcy and what this will mean for you and your debts. So contact Bankruptcy Australia if you have any queries concerning Bankruptcy on 1300 795 575. Or feel free to go to our website: www.bankruptcy-australia.com.au