Exactly what Debts are removed if I go Bankrupt?
The quick answer is that when it comes to Going Bankrupt 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) as well as any debts arising from uninsured Motor-vehicle claims and educational debts which include HECS or FEE-HELP. These debts are not cleared away when you file for bankruptcy.
What about Secured Debts?
A secured debt is a car loan or a home loan; it is a debt that has some absolute security affixed to it. So for example 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 could be wiped but the asset has to be sold or returned. This is just one facet that, when it comes to Going Bankrupt, it is necessary to get professional help – like that offered at Bankruptcy Advice Australia.
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 erased with bankruptcy. If you have a business with any type of debts receive some advice because it is not always so basic. Feel free to call us here at Bankruptcy Advice Australia if you have any type of questions on 1300 879 867. Or feel free to check out our website: http://www.bankruptcy-advice.com.au/Australia.com.au
What about my business or Company debts?
In some cases when it involves Going Bankrupt 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 Going Bankrupt, it can be a complicated area, so remember there are implications for a business owner such as insolvent trading. At Bankruptcy Advice Australia we specialise in business and personal debts so call us here at Bankruptcy Advice Australia if you have any questions regarding Going Bankrupt on 1300 879 867. Or feel free to head to our website: http://www.bankruptcy-advice.com.au/Australia.com.au
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