If you go bankrupt and still owe the ATO a large degree of money ($100k plus), will they chase you down for the rest of your life, or is the debt wiped? If the properties are sold from underneath you, with a value of $800k and debt of $800k, will the 1st mortgagee get first chop, or does the ATO have a crack? Various other debts up to $250k are also their (with little if any asset), although I doubt these guys could get a crack at any money initially. Is it better to go bankrupt, or try and sort everything out, leaving an unsecured debt of $400k (I doubt this could be arranged any way).
p.s. I know you will all be thinking that this is my situation, but I'm trying to get some info for a mate..honestly!
