Everything You Need To Know About Bankruptcy
Think twice before you act if you are contemplating bankruptcy because of your debt. Bankruptcy is a final option with major repercussions. There are many ways to handle overwhelming debts. Fox Symes should be consulted before you decide to do anything or take any action. There are other options.
What Is Insolvency?
When a person is unable to make their debt payments when they are due, bankruptcy may be filed as a legal procedure. The Bankruptcy Act of 1966 governs bankruptcy in Australia, and the Australian Financial Security Authority oversees its administration.
After being declared bankrupt, you relinquish management of your money and possessions to a Trustee in return for immunity from legal action brought against you by a party to whom you owe money and Company Liquidation. There may be alternatives to bankruptcy depending on your financial condition, including informal agreements, debt consolidation, mortgage refinancing, debt agreements, and personal insolvency agreements.
Do I Have to File for Bankruptcy?
If you want to deal with your creditors right now, bankruptcy could seem like a simple and appealing alternative. But before you think of doing this, you should be aware of the dangers. Ask Fox Symes about the other choices available to you for resolving your financial condition. Going bankrupt may not be necessary.
How do I file for bankruptcy?
Bankruptcy may be your best choice if you believe you are unable to pay your obligations and you and your creditors are unable to come to an agreement. You are able to voluntarily file a petition to declare bankruptcy.
You might become bankrupt due to a creditor. After speaking with Fox Symes and considering your alternatives, if you determine that declaring voluntary bankruptcy is the right course for you, Fox Symes will help you go through the process. The effects of bankruptcy are severe, thus you do need to be completely educated.
Is there a minimum debt I must have in order to declare bankruptcy?
No. You may freely declare bankruptcy while owing any sum. To declare you bankrupt, however, a creditor must have a debt of $5,000 or more.
How will my bankruptcy be handled?
If no registered trustee has consented to act, AFSA will handle your inheritance. A registered trustee for Fox Symes may provide permission to act on your behalf.
What happens if I file for bankruptcy?
Your unsecured creditors will no longer be able to reach you if you declare bankruptcy. All of your unsecured creditors must be included in your Statement of Affairs if you want this to occur. You may also owe money to your family and friends, as well as obligations that you may have incurred jointly with another individual.
Once you declare for bankruptcy, the majority of legal action that an unsecured creditor has against you must end. This also holds true for bank account or income garnishments, as well as for any recovery actions taken by a sheriff or bailiff.
Notify your trustee if any of your unsecured creditors make further contact with you. They’ll speak with the creditor. There are several debts that you must keep paying even while filing for bankruptcy, including:
Fines and penalties imposed by the court
Accidental unliquidated damages, such as those from vehicle accidents, may be an exception.
Student loan debts from HELP and additional loans for students
Of course, you will still need to pay back certain obligations, such your energy payments and any new debt you accrue after declaring bankruptcy.
What happens to my assets if I file for bankruptcy?
Some of your assets may be kept after filing for bankruptcy since they are protected property, while others could be reclaimed by your trustee and auctioned.
A bankruptcy asset is everything of value that you hold at the time of filing for bankruptcy as well as whatever you acquire or receive prior to the discharge of your bankruptcy. What you may retain if you file for bankruptcy includes:
- most of your standard personal or home goods
- Trade equipment used to generate money up to a certain limit
- vehicles up to a certain limit, such as automobiles or motorcycles
- a conforming superannuation fund’s majority of assets
Term life insurance
Centrelink payments for personal injury compensation are also safeguarded.
Make sure you properly research which assets are protected and which are not before declaring bankruptcy.
Are any of my assets going up for sale?
The above-mentioned assets are some of the ones that are frequently kept when filing for bankruptcy protection. Your trustees may be able to collect other assets, however. These assets include, as example:
- any actual property, including homes, apartments, land, businesses, and more
- Vehicles that are not excluded from the rule
- stocks and other forms of investing
- Any tax refund for earnings made prior to declaring bankruptcy
- any money received from a dead estate if the deceased passed away either before or during your bankruptcy
- wins from the lottery