Bankruptcy: Shame Or Fortune?

Approximately 20,000 people in Australia are declared bankrupt each year (either voluntarily or under duress from creditors). In Australia, approximately 80% of these are personal bankruptcies, and the remaining 20% are corporate bankruptcies. Most people who file for bankruptcy are under the age of 40.

It turns out that personal illness and financial circumstances are the main reasons for taking this step. It was also found that 12% of the total number of bankrupts are already bankrupt.

Bankruptcy is more than just a word; it's a legal status. In fact, focusing on the positive aspects of bankruptcy can be a way to protect yourself from mental pressure. If you are declared bankrupt, a trustee will be appointed, your assets will be sold (leaving only some essentials), your income will be restricted (beyond a certain level, it will be distributed to your creditors), and, of course, you will no longer be able to sell your property. Use a credit card. And all these restrictions will be imposed on him for three years. But your debt will be forgiven.

The government has two purposes for declaring someone bankrupt:

● For debtors, pay off most of the debt and give the debtor a fresh start. This allows debtors to get a clean start in life.

● For creditors: to distribute the debtor’s assets equitably among creditors. This must be done by a third party, such as the government, which distributes assets based on the debt owed by the debtor to creditors. Therefore, bankruptcy is a tool and solution to the problem that is beneficial in the long run for both debtors and creditors. Bankruptcy should not be a word that hides the word. We need to reconsider the idea that it is a crime.

Are you on the verge of a financial collapse? Declaring bankruptcy is a difficult decision. But sometimes you have to answer the call. When your debt burden exceeds your limit, you can feel suffocated both financially and emotionally. Only mentally stable people can earn money. This step relieves you from creditor pressure.

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