What Debts are removed if I go Bankrupt?
The basic answer is that when it concerns Bankruptcy most debts are wiped, and I have included a summary below for you to look at.
But, simply put some of the exceptions are
Centrelink Debts, Child Support, Court fines (like speeding fines) and also any
debts arising from uninsured Motor-vehicle claims and educational debts which
include HECS or FEE-HELP. These debts are not eliminated 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 genuine security affixed 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 removed if I
file for bankruptcy?
Yes. If you have a car loan for $40,000 you
can have that debt erased 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 might be wiped but the asset has to be sold or returned. This is
just one element that, when it comes to Bankruptcy, it is vital to get
professional advice - like that offered at Bankruptcy Advice Canberra.
What about my Tax Debts with the ATO can
they be erased If I go bankrupt?
Yes they can, both business and personal
debts owing to the ATO can be eliminated with bankruptcy. If you have a
business with any type of debts find some advice because it is not always so
easy. Feel free to call us here over at Bankruptcy Advice Canberra if you have
any questions on 1300 879 867. Or feel free to check out our website:
www.bankruptcy-advice.com.au/Canberra.com.au
What about my business or Company debts?
In some cases when it involves Bankruptcy we
can assist you with your business debts, call us concerning this first.
Remember bankruptcy applies to an individual not companies, trusts or
businesses. Typically you may have to liquidate a company to deal with the debt
this way. When it comes to Bankruptcy, it can be a complicated area, so
remember there are implications for a business owner such as insolvent trading.
At Bankruptcy Advice Canberra we specialise in business and personal debts so
give us a call here at Bankruptcy Advice Canberra if you have any questions
about Bankruptcy on 1300 879 867. Or feel free to visit our website:
www.bankruptcy-advice.com.au/Canberra.com.au
