Can A Mortgage Default Send Me Into Debt?
Can A Mortgage Default Send Me Into Debt? Table of Contents If you’re facing a mortgage default or are having difficulties making your repayments on
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Bankruptcy can be a daunting time, especially if you have never experienced serious debt or bankruptcy before. Every bankruptcy case is different, but we’ve got some handy information for you. If you’re unsure about how bankruptcy works, or you’d like to be aware of who will be able to see your bankruptcy status, read on below.
Generally, bankruptcy can be either voluntary or involuntary. Voluntary bankruptcy is when you legally declare that you can’t pay off your debts on your own, using a form that you would fill out. This is you declaring yourself bankrupt, and usually, there isn’t a fee for applying for bankruptcy.
On the other hand, there is involuntary bankruptcy. This is when a creditor applies to have you bankrupted. To be declared bankrupt involuntary, creditors may lodge a creditor’s petition through the Federal Court of Australia, along with other documents.
Generally, once you have declared officially bankrupt, your bankruptcy status will be publically registered on the Personal Insolvency Index. In most cases, bankruptcy classification lasts for three years and one day, after which you will be released from most of your debts. Once you have been declared bankrupt, you can choose to nominate a trustee. This person will manage your finances for you. If you decide that you do not wish to nominate a trustee of your choosing, in most cases, the Australian Financial Security Authority will appoint one for you.
If you have any secured debts such as a car loan or a home loan, you will most likely still need to make your repayments. However, if you find yourself unable to make these repayments, your asset might be seized and repossessed by your lender. If you have a HECS or a HELP student loan debt, child support maintenance or any court-imposed fines, you may still need to make these repayments.
If you have any unsecured debts that are not tied to an asset, such as household bills, unpaid rent and unsecured personal loans, you may find that you don’t need to pay these off. It is important to make sure you are aware of what debts you will need to keep repaying once the bankruptcy process begins.
As we mentioned earlier, your bankruptcy will most likely be listed on the National Personal Insolvency Index. The National Personal Insolvency Index lists the details of insolvency proceedings throughout Australia. Some other pieces of information that may appear on the National Personal Insolvency Index are:
If you’re going through bankruptcy or debt issues, there is help and support available to you. You might find that a bankruptcy advocate is a good choice. A bankruptcy advocate is someone who can provide support during the bankruptcy process, and advocate on your behalf with debt collectors and creditors.
During the bankruptcy process, it’s important to have someone on your side who can stand up for your needs. That’s where an advocate comes in. They can make sure that your best interests are being looked after, and help to ensure that all matters relating to your bankruptcy process are fair.
If you’re being harassed by creditors and debt collectors, advocates can step in and provide assistance. Advocates can prove very useful in helping to find you a personalised solution and to provide support during the bankruptcy process.
Bankruptcy advocates are qualified to give you generalised support and advice. They can also answer your questions and provide you with support for your concerns. Advocates are able to guide you through the bankruptcy process from beginning to end and make sure that the terms of your bankruptcy represent your best interests. You may find an advocate helpful if you aren’t sure where to turn for support and advice, or if you’re tired of being hounded by creditors and debt collectors.
SR & Associates have over 40 years of experience and have helped 1,000’s of Australians with their bankruptcy and debt issues. We advocate on our clients’ behalf with both banks and creditors in order to stop home repossession. We also help those going through bankruptcy who are being harassed by creditors. We provide our services to those who need support. We can give you confidential assistance and expert debt guidance while finding you a personalised solution.
We don’t charge any hidden fees, so you won’t find any nasty surprises in the mail. We can also assist you if you are having mortgage issues, and help you to find a solution. If you’re in need of help and support, give us a call today for your free consultation.
*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.
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