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Becoming bankrupt is a serious step with long term consequences. People in financial difficulties should be sure they are aware of all options before deciding on any particular course of action. The option of bankruptcy should be considered as your last resort. If you are experiencing financial difficulties, consider the following options first:
Alternatives to Bankruptcy An Informal Arrangement with Creditors
If you have an income, agreement could be made to repay debts over a period of time. There would be no publicity. This type of informal arrangement may not be binding on creditors, some creditors may change their minds or you might default on the payments, all of which could result in creditors continuing to pursue you for the debts. A Formal Agreement –
A Negotiated Agreement with Creditors A Part 9 Debt Agreement is a legally binding agreement between a debtor and their creditors. Debt Agreements are a flexible alternative to bankruptcy.They are Government endorsed.
An arrangement which is binding on creditors can be made under Part X of the Bankruptcy Act. You will need to have either a steady income, funds available from a family member ( sometimes called a Granny offer), or assets to offer your creditors for such an arrangement to be acceptable is practical.
Part 9 Debt Agreements can assist you by offering
- One affordable payment to cover all of your debt.
- A guarantee to be out of debt within 2 to 4 years.
- All interest immediately frozen. Imagine how much that will help. Many people pay back less than the total that they owe when they contact us
- Legal protection so your creditors can not take action against you, your wages or your property.
- Legal protection so your creditors can not change the deal at any time
*Fees are charged for this service.
*(If you are calling from a mobile or interstate call us and we will call you back to save the cost of the call)
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