Thinking about Declaring Bankruptcy in Sydney, Wagga Wagga, Dubbo, Toowoomba or Penrith? Consider These Pros and Cons
At ABC Debt Solutions, we have previously handled personal bankruptcy cases in Sydney, Wagga Wagga, Dubbo, Toowoomba, Penrith and throughout NSW. However, while we do offer this service, we also always encourage our clients or would-be clients to consider the other options available to them before lodging a petition to become bankrupt.
If you are having difficulty fulfilling your debt to creditors, ABC has a number of other services—including Part 9 debt agreements and Part 10 Personal Insolvency agreements—that can help you pay off your debt without going into full bankruptcy. Visit our services page at http://www.abcdebtolutions.com.au/debt-solutions-1/ to learn more about these alternative options.
The Pros of Bankruptcy
If you are considering bankruptcy—or if your creditors have forced you into bankruptcy—then ABC Debt Solutions can provide services in Toowoomba, Dubbo and throughout NSW to help. To start, though, it's good for you to know what to expect from bankruptcy. Here are a few of the more positive angles:
- Your debt will be cleared and finalised, and you will be able to start with a clean slate.
- Creditors will have to leave you alone. When you declare bankruptcy, you are saying 'I cannot fulfil my debt,' and the law will recognise that status. In turn, the law will prohibit your creditors from bothering you about debt—either with threatening 'past due' reminders or lawsuits.
- Declaring bankruptcy also stops any wage garnishment arrangements and prevents authorities from seizing or repossessing your belongings.
Bankruptcy status lasts for three years, and in that time, all of the above rules hold true. As a result, declaring bankruptcy can be an effective last resort to clear out financial woes and get back on your feet without being knocked back into the hole.
The Cons of Bankruptcy
Unfortunately, declaring bankruptcy in Tubbo or Penrith comes with many costs and consequences. Here are a few of them:
- It affects your ability to obtain future credit. While the bankruptcy period only lasts three years, it continues to affect your credit for years afterward.
- Your estate can be liquidated to pay off debt. Real estate, vehicles above a set value (currently $7,900), antiques and most valuables will be liquidated as part of this process. A limited number of belongings—including clothing, some furniture, wedding rings, vehicles under a set limit etc.—may be protected, but there are rarely guarantees. Inheritances will also be a part of the liquidated estate.
- In addition to hurting your credit, bankruptcy goes on the public record and employment restrictions apply. Ability to obtain a rental property, get insurance can be affected. Your name stays on public record for life.
Get Help with Your Bankruptcy Proceedings, by Hiring ABC Debt Solutions in Penrith, Sydney, Dubbo, Toowoomba or Wagga Wagga
If you have been pushed into bankruptcy or believe bankruptcy is the right course of action for settling your debt, contact ABC Debt Solutions today. We serve clients from Wagga Wagga, Penrith, Dubbo, Toowoomba and around the Sydney area, and are happy to speak with you and determine how we can help you through this difficult and often emotionally trying process. Call today, on 1800 DEBTS.