Bankruptcy Australia, What is the Deal with Debts?

Precisely what Debts are eliminated if I go Bankrupt?

The simple answer is that when it comes to Bankruptcy most debts are wiped, and I have also included 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) as well as any debts arising from uninsured Motor-vehicle claims and educational debts for instance, HECS or FEE-HELP. These debts are not wiped out 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 genuine 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 wiped out 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 may be wiped but the asset needs to be sold or returned. This is just one aspect that, when it comes to Bankruptcy, it is important to get professional help - like that provided at Liquidation Service.

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 erased with bankruptcy. If you have a business with any kind of debts get some advice because it is not always so self-explanatory. Feel free to call us right here at Liquidation Service if you have any questions on 1300 795 575. Or feel free to go to our website: www.liquidationservice.com.au

What about my business or Company debts?

In some cases when it concerns Bankruptcy 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. Usually you may have to liquidate a company to deal with the debt that way. And when it comes to Bankruptcy, it can be a confusing area, so remember there are implications for a business owner such as insolvent trading. At Liquidation Service we specialise in business and personal debts so call us here at Liquidation Service if you have any questions about Bankruptcy on 1300 795 575. Or feel free to explore our website: www.liquidationservice.com.au