pathways to bankruptcy - essential facts
TRANSCRIPT
PATHWAYS TO BANKRUPTCY – ESSENTIAL FACTS
http://nichollsco.com.au
A person can become bankrupt by making application (Debtor’sPetition) or by a creditor applying to the Court for the Court to makean Order (Sequestration Order) that the person be made bankrupt(Creditor’s Petition).
We recommend that you make your own application for bankruptcy asdoing so has a number of positive advantages. These advantagesinclude:
A Debtor’s Petition will give a more timely resolution to yourfinancial problems.
Stress levels will normally be lower if you are making the decisionrather than waiting to see what time frame someone else willdecide for you.
Once you have recognized the need for bankruptcy to resolveyour financial problems – the sooner you can gain the protectionof bankruptcy – the sooner you can push on with your life. Youwill have drawn the line in the sand – have certainty – and startgoing to work each day with your wages protected for you andyour family.
Once you have the protection of bankruptcy, the phone calls fromcreditors will stop.
Creditors are not subject to a strict time frame – they can makeapplication for your bankruptcy at any time within the statute oflimitations. If the creditor does not pursue timely action, this canresult in your financial problems lingering for many years.
PATHWAYS TO BANKRUPTCY – ESSENTIAL FACTS
http://nichollsco.com.au
You must owe a creditor more than $5,000 (subject to CPIadjustment) before the creditor can petition for your bankruptcy.
If you apply for bankruptcy you are able to ask a Trustee to be theTrustee of your bankrupt estate. You do not have this option for aCreditor’s Petition.
Creditors also have the benefit of knowing where they stand anddo not waste money trying to collect a debt that is notcollectable.
The creditor is able to talk to the Trustee’s office to find outwhere they stand and to find out whether they should write offtheir debt or what percentage is likely to be recovered.
The creditor does not incur the cost of making application to theCourt for your bankruptcy.
A Debtor’s Petition provides the best outcome for all parties.
Further and more detailed information on ways you can becomebankrupt can be obtained from this website or by calling Alan Nicholls
on 1300 676 998
Contact Us :
Nicholls & Co.E-mail : [email protected]