Bankruptcy can be a stressful and daunting time. It can be a hard process to comprehend, as every bankruptcy case is different. If you aren’t sure on how bankruptcy generally works, or the steps involved in becoming bankrupt, we have the answers. Read on below to find out everything you’ll need to know about bankruptcy and debt issues.
Bankruptcy can be classed as voluntary or involuntary bankruptcy. Voluntary bankruptcy is when you legally declare that you cannot pay your off your debts yourself, using a form that you would need to fill in. This is you declaring yourself to be bankrupt, without any intervention from the law. Generally, there is no fee or a small one for applying for bankruptcy.
Involuntary bankruptcy is when a creditor applies to have you become bankrupt. In order to be declared bankrupt involuntary, creditors may apply to bankrupt you through the Federal Court of Australia, with what is called a creditor’s petition. This would be lodged through the court along with other documents.
Generally, you will be classified as bankrupt for three years and one day, and your bankruptcy will be publicly registered on the National Personal Insolvency Index. In most cases, after this time has passed, you will be released from most of your debts depending on what debts you have.
Once you have been declared bankrupt, you can nominate a trustee, who will manage your finances on your behalf. In most cases, if you choose not to nominate a trustee, the Australian Financial Security Authority will appoint one on your behalf.
If you have secured debts such as a car loan or a home loan, you will most likely still need to make payments towards them. If you are unable to make these payments, it’s possible that your house or car could be repossessed by the bank. You may also need to keep making HECS and HELP student loan repayments, child support maintenance and any court-imposed penalties or fines.
However, you may not need to pay off any unsecured debts you may have. Unsecured debt is not tied to a specific property, such as a house. These debts may include household bills, unpaid rent, unsecured personal loans, and fees such as medical, legal or accounting.
It’s important to be aware of what is covered by bankruptcy and to check what you will need to pay once the process begins.
As mentioned above, your bankruptcy will generally be listed on the National Personal Insolvency Index. The National Personal Insolvency Index shows details of insolvency proceedings in Australia, including bankruptcy. Some other information that may appear on the public register is:
If you’re going through the bankruptcy process alone, help and support are available to you. A bankruptcy advocate is someone who can advocate on your behalf with creditors, and provide generalised support during the bankruptcy process.
Advocates can be useful as a support system during bankruptcy. Debt can be stressful, and it can be important to have someone in your corner who can advocate for your wants and needs. Advocates ensure that your best interest is looked after from start to finish during the bankruptcy process.
Bankruptcy advocates can provide support during the bankruptcy process. Advocates can also help you if you’re being harassed by creditors, or if you need advice about debts. Advocates are useful when it comes to helping find you a personalised solution, and to provide support along the way.
Advocates are qualified to give you generalised assistance and support during the bankruptcy process. Advocates are on hand to answer your questions and listen to your concerns. Advocates are especially helpful if you need assistance with debt guidance, or with finding a personalised solution to debt issues.
Advocates are able to guide you through the bankruptcy process from start to finish. They are able to advocate on your behalf and are useful in making sure the terms of your bankruptcy are fair and represent your best interests.
You may find an advocate helpful if you aren’t sure where to turn to for support and assistance, or if you’re tired of being hounded by creditors and debt collectors.
J Daniels & Associates has more than 40 years’ experience and has helped 1,000’s of people successfully.
We advocate on our clients’ behalf with banks and creditors in order to stop home repossession, as well as helping to stop those in bankruptcy situations from being harassed by creditors. You shouldn’t have to live in constant fear, and that’s where we can help.
We aim to provide support services to those who do not know where to look, or who are confused about where to turn during the bankruptcy process. Our helpful advocates can assist you when you need it the most. We are able to give you confidential help, expert debt guidance and help you to find a personalised solution.
We don’t have any hidden fees, so you won’t have to worry about any nasty surprises. In addition to helping you to improve your situation, we can assist you in finding a solution to your issues. If you’re in need of help and support, give us a call today for your free consultation.
*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.
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