So how much will actually be removed? What financial obligations will I still be left with? Is Bankruptcy really going to assist me get a fresh start?
When it relates to bankruptcy pros and cons in Australia I frequently have individuals either stressed that their debt won’t be cleared away, or will have no idea that bankruptcy does not really address every little thing. So before you get too caught up with bankruptcy pros and cons please ascertain that the type of personal debt you have is really one that Insolvency will wipe clean!
Overall, when it concerns bankruptcy pros and cons, most financial obligations are erased, but I have made an useful table to help you out:
So as you can discover, some of the exemptions are Centrelink Debts, Child Support, Court fines (like speeding penalties) and any financial obligations arising from uninsured Motor-vehicle claims and educational financial debts which include HECS or FEE-HELP. These kinds of financial debts are not cleared away when you apply for personal bankruptcy.
But what happens with Bankruptcy and Secured Debts?
A secured debt is debt that has some kind of security connected to the loan– such as a car or house mortgage where the asset is the security– the big difference with these forms of liabilities is that whenever you eliminate them you will lose the security.
So if you have a $30,000 vehicle loan, you can wipe the liability through insolvency by simply offering the car back. This is merely one element that, when it concerns bankruptcy pros and cons, it is essential to get professional assistance – like that supplied at Bankruptcy Experts since it isn’t always as easy, but you need to be realistic and consider that you can not always maintain the property. Feel free to contact us at Bankruptcy Experts if you have any kind of queries on 1300 818 575. Or feel free to visit our website: www.bankruptcyexperts.com.au
What about my business or Company financial obligations?
In many cases when it involves bankruptcy pros and cons we can assist you with your business liabilities, call us concerning this first. Bear in mind bankruptcy applies to an individual not companies, trusts or businesses. Normally you may have to liquidate a company to deal with the debt this way. And when it comes to bankruptcy pros and cons, it may be a complicated area, so just remember there are effects for a local business owner such as insolvent trading.
So what about Tax Debts?
Both business and personal financial obligations owing to the ATO can be eliminated with insolvency. If you have a business with any type of debt get some guidance because it is not often so simple when it comes to bankruptcy pros and cons because every debt is going to be varied and that will affect the level that it could be removed, and the ramifications it will have for bankruptcy.
At Bankruptcy Experts we specialise in business and personal financial debts and can better discuss the exceptions to bankruptcy and what this will mean for you and your liabilities. So phone Bankruptcy Experts if you have any concerns concerning bankruptcy pros and cons on 1300 795 575.