Just what Debts are erased if I go Bankrupt?
The quick answer is that when it comes to Going Bankrupt most debts are wiped, and I have added a compendium below for you to look at.
But, put simply some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) together with any debts arising from uninsured Motor-vehicle claims and educational debts including HECS or FEE-HELP. These debts are not eliminated 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 definite security attached 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 wiped out if you simply return 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 must be sold or returned. This is just one part that, when it comes to Going Bankrupt, it is important to get professional assistance – like that provided at Bankruptcy Hervey Bay.
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 removed with bankruptcy. If you have a business with any kind of debts receive some advice because it is not always so straightforward. Feel free to call us right here over at Bankruptcy Hervey Bay if you have any questions on 1300 795 575. Or feel free to head to our website: www. bankruptcyexpertsherveybay.com.au
What about my business or Company debts?
Sometimes when it comes to Going Bankrupt we can really help you with your business debts, call us about this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Generally you may need to liquidate a company to deal with the debt this way. And 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 Hervey Bay we specialise in business and personal debts so call us here at Bankruptcy Hervey Bay if you have any questions regarding Going Bankrupt on 1300 795 575. Or feel free to explore our website: bankruptcyexpertsherveybay.com.au