Filing For Bankruptcy – What is the Deal with Debts?
Filing For Bankruptcy – What is the deal with debts?
So what Debts are wiped out if I go Bankrupt?
The uncomplicated answer is that when it involves Filing For Bankruptcy most debts are wiped, and I have provided a summary below for you to look at.
But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) and any debts arising from uninsured Motor-vehicle claims and educational debts like HECS or FEE-HELP. These debts are not cleared away when you file for bankruptcy.
What about Secured Debts?
A secured debt is a vehicle loan or a home loan; it is a debt that has some real security connected to it. So for instance if you buy a new car for $40,000 dollars the security for this car is the actual car itself.
So, can my secured debts be eliminated if I file for bankruptcy?
Yes. If you have a car loan for $40,000 you can have that debt cleared away if you simply hand back the car. So the lesson is that you cannot have your cake and eat it too (so to speak), so yes all of your secured debts may be wiped but the asset will need to be sold or returned. This is just one facet that, when it comes to Filing For Bankruptcy, it is important to get professional guidance – like that available at Bankruptcy Experts Australia.
What about my Tax Debts with the ATO can they be wiped out If I go bankrupt?
Yes they can, both business and personal debts owing to the ATO can be cleared away with bankruptcy. If you have a business with any type of debts get some advice because it is not always so basic. Feel free to call us here at Bankruptcy Experts Australia if you have any questions on 1300 795 575. Or feel free to explore our website: www.bankruptcyexpertsAustralia.com.au
What about my business or Company debts?
Sometimes when it comes to Filing For Bankruptcy we can assist you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Normally you may need to liquidate a company to deal with the debt that way. When it comes to Filing For Bankruptcy, it can be a complicated area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Experts Australia we specialise in business and personal debts so contact us here at Bankruptcy Experts Australia if you have any questions about Filing For Bankruptcy on 1300 795 575. Or feel free to visit our website: www.bankruptcyexpertsAustralia.com.au