Bankruptcy in Australia – What Debts are removed by Bankruptcy?

//Bankruptcy in Australia – What Debts are removed by Bankruptcy?

So what amount will truly be eliminated? What financial debts will I still be left with? Is Bankruptcy actually going to assist me get a fresh start?

When it comes to Bankruptcy in Darwin I commonly have individuals either worried that their debt won’t be cleared away, or will have no idea that bankruptcy doesn’t actually cover every little thing. So before you get too caught up with Bankruptcy please make sure that the kind of financial debt you have is really one that Bankruptcy will wipe clean!
As a whole, when it comes to Bankruptcy, most financial obligations are removed, but I have developed a convenient table to help you out:

So as you can observe, some of the exemptions are Centrelink Debts, Child Support, Court fines (like speeding fines) and any financial obligations occurring from uninsured Motor-vehicle insurance claims and academic debts such as HECS or FEE-HELP. These kinds of liabilities are not cleared away when you apply for personal bankruptcy.

But what happens with Bankruptcy and Secured Debts?

A secured debt is financial debt that has some sort of security connected to the financing– such as a car or house loan where the asset is the security– the difference with these kinds of financial 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 liability through insolvency by simply offering the car back. This is just one element that, when it concerns Bankruptcy, it is important to get expert help – like that supplied at Bankruptcy Advice Darwin because it isn’t always as easy, but you need to be realistic and keep in mind that you can not always keep the asset. Do not hesitate to phone us at Bankruptcy Advice Darwin if you have any type of queries on 1300 879 867. Or feel free to visit our website: www.bankruptcy-advice.com.au/Darwin

What about my business or Company debts?

In many cases when it involves Bankruptcy we can assist you with your business debts, call us concerning this first. Bear in mind bankruptcy relates to an individual not companies, trusts or businesses. Normally you may have to liquidate a business to take care of the debt this way. When it comes to Bankruptcy, it may be an intricate area, so just remember there are implications for a local business owner including insolvent trading.

So what about Tax Debts?

Both business and personal debts owing to the ATO might be eliminated with bankruptcy. If you have a business with any type of debt get some guidance because it is not often so easy when it concerns Bankruptcy because every debt is going to be varied which will impact the level that it can be cleared, and the implications it will have for Bankruptcy.

At Bankruptcy Advice Darwin we specialise in business and personal debts and can better explain the exceptions to bankruptcy and what this will mean for you and your financial obligations. So phone Bankruptcy Advice Darwin if you have any concerns concerning Bankruptcy on 1300 879 867. Or feel free to go to our website: www.bankruptcy-advice.com.au/Darwin

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