What is Bankruptcy. In Brisbane and all states in Australia, Bankruptcy occurs when an individual cannot repay all their debts.
In an instance when filing for bankruptcy, the individual must help the trustee, and in some cases, the court, understand their situation.
Likewise, the individual going bankrupt would supply the Trustee with a list of outstanding debts and assets. The assets of the individual going bankrupt are divided into two kinds of assets, exempt and non-exempt.
To pursue what is Bankruptcy and Assets, Exempt Assets are the assets you own and can not be used to pay for your debts such as personal belongings.
Non-Exempt Assets can be sold to pay your debts. These assets included your house and vehicle.
The type of debts you have can also be divided into two types – Secured and Non-Secured Debts.
In addition, Non-Secured Debts are generally your personal loans, medical, and credit card bills. Secured Debts are kinds of loans that are essentially protected by collateral and can be seized and sold if not repaid, which can be used to pay for the debt.
Moreover, Bankruptcy is not just a term that denotes not having enough money at hand. It is much more complex than that.
In light of the above, some people would think that bankruptcy is the ultimate solution for financial difficulties, although it can be said to be true, there are things that one must know and understand before declaring yourself bankrupt.