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
