Bankruptcy Sydney, What is the Deal with Debts?

What Debts are erased if I go Bankrupt?

The practical answer is that when it concerns Bankruptcy most debts are wiped, and I have included a table below for you to look at.

But, simply put some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) along with any debts arising from uninsured Motor-vehicle claims and educational debts for example, 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 absolute security linked to it. So for instance if you buy a new car for $40,000 dollars the security for that car is the actual car itself.

So, can my secured debts be wiped out if I file for bankruptcy?

Yes. If you have a car loan for $40,000 you can have that debt eliminated 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 facet that, when it comes to Bankruptcy, it is vital to get professional help - like that you can find at Bankruptcy Advice Sydney.

What about my Tax Debts with the ATO can they be cleared away If I go bankrupt?

Yes they can, both business and personal debts owing to the ATO can be removed with bankruptcy. If you have a business with any type of debts find some advice because it is not always so simple. Feel free to call us here at Bankruptcy Advice Sydney if you have any questions on 1300 879 867. Or feel free to visit our website: www.bankruptcy-advice.com.au/Sydney.com.au

What about my business or Company debts?

In some cases when it concerns Bankruptcy we can help you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Typically you may need 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 Sydney we specialise in business and personal debts so contact us here at Bankruptcy Advice Sydney if you have any questions regarding Bankruptcy on 1300 879 867. Or feel free to check out our website: www.bankruptcy-advice.com.au/Sydney.com.au