Insolvency simply means you cannot pay your debts on time. Many of us face times in our lives when we need someone to help us that can provide truthful information about how to get out of debt.
There are a few options you can choose from to help get your finances back on track when you want to fix your debt problem.
The first three options have serious consequences and place a 5-year black mark on your credit file. This will stop you being able to get a loan or credit for 5 years, even for something as simple as a mobile phone.
These are all formal options made available under the Bankruptcy Act 1966 which is overseen by the Australian Financial Security Authority or AFSA. A part 9 debt agreement. A part 9 debt agreement is a legally binding arrangement for you to pay your creditors over 3 years. This arrangement has a serious impact on your ability to access credit for 5 years.
- Going bankrupt yourself – presenting a debtor’s petition (DOI) is also the same as going bankrupt. Lodging a DOI means you can’t get credit for 5 years, and you will have to tell every lender you apply to in the future that you were once bankrupt. Your bankruptcy will also be recorded on the public website – the National Personal Insolvency Index (NPII) forever.
- Being forced into Bankruptcy. You receive a Creditors Petition as a first step and if action is not taken you will be forcibly made bankrupt. Your bankruptcy will last for three years and one day, with (usually) a private trustee appointed to manage your bankruptcy who may charge you up to $100,000 in fees that will be deducted from the sale of anything but essentials that you own. You also have the same consequences as for a DOI.
Where can I find kinder, debt help?
A kinder way to resolve your debt and avoid going bankrupt is to contact Solve My Debt Now.
Our debt fix, debt consolidation solution aims to:
- Avoid the consequences of a part 9 debt agreement or bankruptcy
- Have you pay down your entire debt to zero in 3-5 years or less
- Freeze or reduce your interest
- Investigate whether your debt is valid or was irresponsibly given to you
- Reduce or waive your debt
Call our friendly Solve My Debt Now team on 1300 070 672 for confidential debt help to get your life back on track.
We Can Help You – Today
Book your FREE Consultation now and talk to one of our qualified SMDN Advocates that will help put you back on the road to financial freedom!