Many people have different opinions when it comes to bankruptcy. If you are in a situation wherein you are facing bankruptcy, you might need to weigh your options before you take the plunge. It is always better to have an expert look into your situation and help guide you on the same.
Bankruptcy Will Not Free You off Your Debts
Many people feel that once they have declared themselves bankrupt, they are completely free off their debts. This is so not the case. When you declare yourself bankrupt, the court will look into your assets and liabilities and then make the decision of bankruptcy. Not all your debts will come under bankruptcy. Some of your assets will also be at stake and can be given off to your creditors to pay off your debts.
When you have been declared bankrupt, creditors will not be able to file a lawsuit against you or contact you for paying off their debts. If you are planning to file for bankruptcy but have no idea how to do so, you can always take bankruptcy advice from experts. One such company in Gordon, Australia, that you can rely on is The Insolvency Experts.
You can either call them or fill up a form and wait for their team to call you. Their licensed experts with assess your current financial situation, come up with a suitable plan and help in understanding your obligations. They will explain the entire bankruptcy situation to you in depth and then help you make the final decision.
Overview of the Bankruptcy Process
The filing for bankruptcy can also be done by the creditors. In such cases, you can either accept the case or deny it. In case you are denying the case, you need to show proof of evidence that:
- You owe no debt with the creditors
- That all payments have been settled with the creditors in full
You need to fill out certain forms such as Bankruptcy Form 4 & 5 along with Form 5 and submit the same if you are opposing the case.
It need not be necessary that the day you file for bankruptcy, the same day the court will hear your case and give you the verdict. It can take days or weeks for the hearing. When you have been declared bankrupt, a trustee will be assigned to handle all your finances. They will review all your assets, make records of the same and might even sell them off to your creditors.
You can also file for bankruptcy online for free. Here you will have a transparent status of your application instead of following up with your attorney. The new bankruptcy form is a combination of both the Statement of Affairs and the Debtor’s Petition forms. In order to file for bankruptcy online, you need to open an online account and provide two forms of identification.
Going bankrupt might not free you from your financial obligations, but it can help to lighten the burden if filed correctly. It can help you keep a hold on some of your valuable assets and give you a chance to start over with new beginnings.