Dealing with Debt Collectors

Dealing with debt collectors can be a stressful and overwhelming experience, especially when considering Bankruptcy. In Australia, the Bankruptcy Act 1966 outlines the laws and regulations governing the bankruptcy process, including the rights and obligations of debtors and debt collectors.

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One of the key provisions of the Bankruptcy Act is the automatic stay, which provides protection for individuals who have been declared bankrupt. This means that once an individual is declared bankrupt, all legal action against them, including debt collection proceedings, must cease, allowing individuals the time and space to focus on repaying their debts through Bankruptcy.

However, there are some exceptions to the automatic stay, such as debts arising from criminal activity, fines and penalties imposed by government agencies, and taxes and obligations arising from family law proceedings such as child support.

It’s important to note that even with the automatic stay in place, debt collectors may still contact the individual to advise them of their debts. However, they must cease all attempts to recover the debt once they know the individual’s bankruptcy status.

If a debt collector continues to pursue a debt after an individual has been declared bankrupt, they may breach the Bankruptcy Act, and the individual may be able to take legal action against them.

In conclusion, understanding the bankruptcy laws in Australia, including the rights and obligations of debtors and debt collectors, is critical for individuals considering Bankruptcy as a solution to their debt problems. If you’re struggling with debt, it’s important to seek professional advice to ensure you understand your rights and obligations under the law.

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“Dealing with Debt Collectors can be very difficult. Filing for bankruptcy will eliminate your debts and stop debt collectors and other creditors from hassling you.  This then leaves you more room to manage your financial responsibilities. If declaring bankruptcy is the only way out of overwhelming debt, a professional can guide you through the process. We’ll work with you to find the best solution for all your assets within the framework of the law and try our best to ensure your future security.”

Andrew Bell Bankruptcy Advisor

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With over 30 years of experience in debt solutions and bankruptcy in Australia Andrew can find a solution for you.

“Nothing is more satisfying to me than knowing that I’ve helped someone get back on their feet by guiding them through the Bankruptcy Process. Rest assured, you’re in good hands with me as we solve your financial problems together.”

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