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So just how much will really be removed? What financial obligations will I continue to be left with? Is Bankruptcy actually going to assist me get a fresh start?
When it relates to Bankruptcy in Australia I commonly have people either worried that their debt won’t be cleared away, or will have no idea that bankruptcy does not actually address everything. So before you get too caught up with Bankruptcy please ensure that the form of personal debt you have is truly one that Bankruptcy will wipe clean!
As a whole, when it comes to Bankruptcy, most liabilities are erased, but I have designed a handy table to help you out:
So as you can see, a few of the exemptions are Centrelink Debts, Child Support, Court fines (like speeding fines) and any financial debts arising from uninsured Motor-vehicle claims and educational financial obligations which include HECS or FEE-HELP. These particular financial debts are not cleared away when you declare insolvency.
But what happens with Bankruptcy and Secured Debts?
A secured debt is financial debt that has some type of security connected to the loan– like a car or house loan where the asset is the security– the big difference with these kinds of debts is that when you eliminate them you will lose the security.
So if you have a $30,000 vehicle loan, you can wipe the debt through personal bankruptcy by simply giving the car back. That is merely one element that, when it comes to Bankruptcy, it is necessary to get professional assistance – like that provided at Bankruptcy Experts because it isn’t always as straightforward, but you should be practical and bear in mind that you can not always maintain the possession. Do not hesitate to contact us at Bankruptcy Experts if you have any kind of questions on 1300 818 575. Or don’t hesitate to go to our website: www.freshstartsolutions.com.au
What about my business or Company debts?
Sometimes when it features Bankruptcy we can help you with your business debts, call us concerning this first. Bear in mind bankruptcy applies to an individual not companies, trusts or businesses. Normally you may need to liquidate a company to deal with the liability this way. When it comes to Bankruptcy, it could be a tricky area, so just remember there are effects for a business owner including insolvent trading.
So what about Tax Debts?
Both business and personal debts owing to the ATO could be removed 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 single debt is going to be different and that will affect the degree that it can be removed, and the implications it will have for Bankruptcy.
At Bankruptcy Experts we are experts in business and personal debts and can better explain the exemptions to bankruptcy and what this will mean for you and your debts. So phone Bankruptcy Experts if you have any questions concerning Bankruptcy on 1300 818 575. Or don’t hesitate to go to our website: www.freshstartsolutions.com.au