Bankruptcy Advice
When debtors cannot pay up their debts and make it known legally of this inability, they automatically declare themselves bankrupt. In Australia, debtors can initiate bankruptcy proceedings, according to the Australian Bankruptcy Act of 1966. The Gold Coast is the No. 2 area in Australia where bankruptcies are rampant. In fact, they rose by 19.4% or to a total of 1,690 in 2009.It’s obvious from this that debtors in this area could profit from some sagely Bankruptcy Advice which would help them to familiarize themselves with the concerned bankruptcy law.
How to begin bankruptcy proceedings:If you are in such a situation, the first bit of Bankruptcy Advice experts will give you is that you can begin bankruptcy proceedings by filing for bankruptcy and submitting a statement of affairs to the Insolvency and Trustee Service, Australia. This statement is a list that describes in great detail all that you owe and what your creditors owe as assets.
From your Bankruptcy Advice, you will realize that until this statement is provided to the department, Queensland authorities do not begin bankruptcy proceedings. Once the proceedings start and you cooperate fully with the Trustee, your bankruptcy might well last for just three years, though in certain cases, it can be brought up to eight years.
Effects of bankruptcy: The effects of bankruptcy are:
- Your creditors won’t be able to start any action to recover their dues from you.
- Any fines a court imposes on you are not covered.
- Child maintenance must be paid to you.
- According to the Bankruptcy Advice you receive, bankruptcy does not affect the rights of secured creditors, so they can repossess property if you default on your loan installments, any shortfall that results will be covered.
- You are obliged to pay Council Rates and water rates.
- Joint borrowers and guarantors must jointly pay up your debt unless they too have declared insolvency.
During bankruptcy, your personal belongings and furniture, valuables, etc cannot be taken in lieu of your debt. They are fully protected, just as your car or motorbike is. You can keep your transport if the amount you owe is much more than the cost of the vehicle.
According to your Bankruptcy Advice, you needn’t worry as your superannuation and life assurance, personal injury compensation and your professional equipment are fully protected. If you hold property in trust for someone else, that too is protected. However, if you own a house, shares, boats, vehicles and investment property, the Trustees can decide if they could be sold to recover the dues.