It is not rare that we find people not being able to pay off their debts. In cases like this, the debtor finds himself in a storm of problems, such as the creditors harassing him for the money he owes, a garnishee order from the court, legal action, asking the debtor to sell everything that he owns and a lot of other complexities. In such cases, bankruptcy might seem an attractive option, to get a layer of legal protection around oneself. Bankruptcy will protect the most basic necessities you own like your family house, keep the creditors away, and withdraw any garnishee or order of such sorts. Even though bankruptcy might seem like the best option for you, you have to consider taking bankruptcy advice, as bankruptcy comes with some serious consequences. Other ways of payment may be available to you that might seem difficult at the moment, but will help you achieve better stability in the long run. If you have considered all of your options and find no way to get yourself out of the financial trouble, then bankruptcy might be an option for you.
What happens after considering bankruptcy?
After you have come up to the decision of declaring yourself bankrupt, most of your assets will be liquidated. In short, those assets will be used to pay off any debts owed to the extent of their worth. You will be left with the basic assets you have that are necessary to carry on your life such as your home, some income resources that provide you income to a limited extent, your car, life insurance policies, and health insurance policies. Easily explained, all the assets that are legally protected under bankruptcy will be left to you, and every other asset will be taken away. The debtor might want to look up the assets protected. That is why considering bankruptcy advice is so important.
Consequences of bankruptcy and the importance of bankruptcy advice:
Bankruptcy, being an easy solution at the time, does not mean that it should be opted out. Because of the many serious consequences, it should only be considered as a last resort. Bankruptcy can give birth to some different types of problems for you. A trustee will be assigned to handle the affairs between you and the creditors. It will become your legal obligation to provide him with all the information related to your financial conditions.
Furthermore, only the debts that are highly doubted to be paid are covered. Your ability to travel will be limited, as travelling without the permission of your trustee is considered a violation. Your name would permanently appear under the National Personal Insolvency Index of Australia, which might affect your ability to work under certain organisations. Moreover, bankruptcy lasts for about three years and may be extended up to five to eight years with the objection of the trustee. The crucial point, and something to take into serious consideration is that it is important to gather professional bankruptcy advice before deciding to go before the court and declare yourself bankrupt. Good bankruptcy advice will help you completely understand what you are about to do, and make a decision that will be better in the long run. You should always look for the best professional advice, before arriving at the decision of bankruptcy. Get bankruptcy advice in Brisbane from NR Consulting as they are well-trusted in this field.