Are you needing some advice or information on how to resolve your debt problem?
There are a few options that are available to assist you to get the help you need to resolve your debt problem.
Here are some legal options that are available under the Bankruptcy Act 1966 which is overseen by the Australian Financial Security Authority (AFSA):
- Entering into a part 9 debt agreement with your creditors
A debt agreement is a legally binding arrangement for you to pay your creditors over 3 years. Entering a debt agreement may be a suitable and flexible alternative for eligible debtors who are considering bankruptcy however, there are long lasting impacts on your credit which must be considered. For more information, you can visit AFSA’s website at https://www.afsa.gov.au/i-cant-pay-my-debts/debt-agreement/what-debt-agreement
- Voluntary bankruptcy
You may be considering voluntarily declaring yourself bankrupt. Bankruptcy is complex and can have serious and far-reaching consequences and according to the Nation Debt Hotline, should only be considered if you’ve exhausted all other options. For more information about voluntary bankruptcy, you can visit AFSA’s website at https://www.afsa.gov.au/i-cant-pay-my-debts/bankruptcy/apply-bankruptcy.
- Being forced into Bankruptcy.
You may also be forced into bankruptcy by a creditor if you don’t pay or negotiate your debt. Bankruptcy lasts for three years and one day, with a trustee appointed to manage your bankruptcy who may charge high fees that will be deducted from the sale of anything but essentials that you own. For more information about bankruptcy, you can visit AFSA’s website at https://www.afsa.gov.au/i-cant-pay-my-debts/bankruptcy/apply-bankruptcy.
What other options are available?
There are many other options available for those struggling with debt before they opt for the legal solutions set out in this blog. We recommend you consider seeking professional financial counselling.
One option would be to contact the National Debt Helpline on 1800 007 007 and speak to a financial counsellor.
Solve My Debt Now also provides a holistic debt relief solution that can be an alternative to immediate insolvency or bankruptcy.
Our debt relief solution aims to achieve any or all of the following outcomes for you:
- Negotiating with creditors to reduce or waive your debt based on your current circumstances.
- Negotiating with creditors to reduce or suspend your interest payments.
- Where successful, avoid leaving a 5-year black mark on your credit file in contrast to the outcome of a part 9 debt agreement or bankruptcy filings.
- Minimises your contact with creditors wherever possible.
- Setting up payment plans with your creditors within your estimated budget to make paying back your debts manageable over time.
We Can Help You – Today
The Solve My Debt Now team are experienced, non-judgmental professionals who work hard to provide tailored solutions for our clients. Book your FREE Consultation now and talk to one of our qualified SMDN Advocates to see if we can help. It just may be the call that puts you back on the road to financial freedom!