Bankruptcy Alternatives
Alternatives to Bankruptcy and Debt Relief Options Australia Wide
Informal Arrangements:
Talk to your creditors and explain your financial position to them. Many of your creditors, when they know of your genuine difficulties will help you by giving you more time to pay or by agreeing to re-negotiate your loans.
Formal Arrangements:
You could enter into a formal arrangement with your creditors, which would consolidate your unsecured debts and enable you to pay them off quickly and safely with one affordable regular payment giving debt relief.
What is a Formal Arrangement?
A debt agreement is a formal arrangement and a legally binding agreement which freezes provable unsecured debts upon acceptance of your proposal by creditors, this allows you to pay back the debts over an extended period of time at an amount that you can afford. You can submit a debt agreement if you have unsecured debts, net assets and a net income less than the indexed threshold amounts and if you are insolvent.
How much interest do I pay?
When a debt agreement has been accepted by creditors, no further interest or charges can be added to the debt.
What is a Provable unsecured Debt?
Examples of unsecured debts are store cards, credit cards, interest free loans, medical accounts, utility bills and some personal loans.
What does Insolvent mean?
A person is insolvent if, and only if they cannot pay all their debts as and when they fall due.
