Bankruptcy Australia, So what is the Deal with Debts?

Which Debts are erased if I go Bankrupt?

The easy answer is that when it involves Bankruptcy most debts are wiped, and I have provided a chart below for you to look at.

But, simply put some of the exceptions are Centrelink Debts, Child Support, Court fines (like speeding fines) alongside any debts arising from uninsured Motor-vehicle claims and educational debts including HECS or FEE-HELP. These debts are not erased 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 genuine security linked to it. So for example 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 erased if I file for bankruptcy?

Yes. If you have a car loan for $40,000 you can have that debt removed 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 has to be sold or returned. This is just one aspect that, when it comes to Bankruptcy, it is vital to get professional help - like that offered at Fresh Start Solutions Australia.

What about my Tax Debts with the ATO can they be eliminated If I go bankrupt?

Yes they can, both business and personal debts owing to the ATO can be eliminated with bankruptcy. If you have a business with any sort of debts get some advice because it is not always so straightforward. Feel free to call us here over at Fresh Start Solutions Australia if you have any questions on 1300 818 575. Or feel free to visit our website: www.freshstartsolutions.com.au/bankruptcy-Australia.com.au

What about my business or Company debts?

Sometimes when it concerns Bankruptcy we can aid you with your business debts, call us concerning this first. Remember bankruptcy applies to an individual not companies, trusts or businesses. Usually you may need to liquidate a company to deal with the debt this way. 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 Fresh Start Solutions Australia we specialise in business and personal debts so call us here at Fresh Start Solutions Australia if you have any questions regarding Bankruptcy on 1300 818 575. Or feel free to explore our website: www.freshstartsolutions.com.au/bankruptcy-Australia.com.au