Are you looking for an alternative to bankruptcy?

15 Jun 2012 by Anthony Warner in Bankruptcy

Have you realised that you have more debt than you are able to afford and don’t know what to do?

Maybe you have had a recent crisis, lost your job or can no longer work and your debts are mounting up.

Often in these circumstances, people believe that bankruptcy is their only option.

It’s not.

There are a couple of alternatives to bankruptcy that we provide.

Each have benefits over bankruptcy that make them a much more attractive option, so if they are suitable to your specific situation, we recommend you at least explore the possibilities before making a decision which you will not be able to reverse once made.

The bankruptcy alternatives we offer are called a Debt Agreement or a Personal Insolvency Agreement. These are legal agreements established and regulated by Australian law and are available to individuals in Australia who are unable to repay their debts.

Whilst both of these agreements do have some similarities to bankruptcy, they are better as they have less onerous restrictions and conditions. In other words you will be able to go about your normal life once the agreement has been set up.

Let us tell you how they work.

A Debt Agreement and a Personal Insolvency Agreement are quite similar, although there are some important differences. In essence both agreements have the following features:

  • All debts are combined into one regular repayment
  • Unpaid balances at the end of the agreement are written off.
  • The agreements are binding on all creditors so they cannot change their mind (as long as you pay your regular amount on time)
  • Fixed payment period, giving you certainty and peace of mind
  • No stigma of formal bankruptcy and you can travel overseas freely without restrictions or approvals

Combine all of your debts
With either agreement all your debts are essentially combined into one. This means you have only one regular repayment (usually weekly or monthly) to worry about so it couldn’t be simpler!

Write off unpaid debts.
At the end of the term of the agreement any remaining balances will be written off. Your creditors will not be able to continue to chase you after the agreement has completed.  You only have to repay the amount agreed upon.

Binding Agreements.
For a creditor, it might seem like a strange decision to agree to terms that will mean them getting less than the full amount returned to them.

The reason they do agree to these terms is because they are likely to get a better return than if you were forced into bankruptcy.

No one gains anything if you are forced into bankruptcy, so creditors will often agree to a partial write off and settle the debt for less

Fixed payment period.
Imagine knowing exactly when all your debts will be paid off. With a Debt Agreement or a Personal Insolvency Agreement you can mark the date in your calendar.

We find this gives certainty and relieves a great deal of stress for our clients, and we could do the same for you as well.

So in summary:
·         Regular fixed repayments for a fixed term.
·         No more interest charges, late fees or threatening letters.

Sounds good doesn’t it?

No stigma associated with Bankruptcy.

Unfortunately, bankruptcy carries stigma.

Not only that, several onerous restrictions and conditions apply in bankruptcy.

You won’t be able to travel freely without permission and in some case restrictions will be placed on your travel.

If you wish to explore the alternatives to bankruptcy, please call us today on 1800 98 10 70 as we have years of experience helping people set up these agreements.

We make the process apply for a Debt Agreement or a Personal Insolvency Agreement easy and stress free. Call today so we can explain the process to you.

A Debt Agreement or a Personal Insolvency Agreement will stop all of the threatening letters and phone calls. In fact, we will deal with our creditors so it couldn’t be easier.

So if you want to get debt free and avoid bankruptcy, call one of our advisors today on 1800 98 10 70, or if you prefer fill in an online assessment and we will get back to you.