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NSW Other Options Than Filing for Bankruptcy?

Discussion in 'Debt and Bankruptcy Law Forum' started by Melissa.L, 17 October 2016.

  1. Melissa.L

    Melissa.L Member

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    Hi.

    I'm concerned about bankruptcy. I've read and read about the consequences. Currently, my bills, loans and credit card repayments are more than the income I earn. I've been trying for months to try get on top of it but I'm not getting anywhere.

    I am want study real estate property management but I've notices that bankruptcy can affect me in getting a licence. I just don't understand if it's for life, a certain stipulated time or the term of my bankruptcy.

    And if I may, can you help me on how the business on TV that advise they can assist you with your debts would help? Is it a better solution than filing for bankruptcy?

    many thanks for your time and help.
     
  2. Victoria S

    Victoria S Well-Known Member

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    The Bankruptcy Act offers two other alternatives to bankruptcy which have less onerous consequences.

    The first is a debt agreement which is a contract between you and your creditors - whereby your creditors agree to accept a lesser sum of money that you can afford. In order to do this your assets and income must be under a certain limit. Debt agreement overview — Australian Financial Security Authority

    The other option is a personal insolvency agreement which is also a contract between you and your creditors which allows you to offer to pay them in full or part by installments or lump sum:
    Personal insolvency agreement (PIA) overview — Australian Financial Security Authority

    This booklet published by AFSA is helfpul to learn about the implications of bankruptcy and your alternatives.
    https://www.afsa.gov.au/debtors/per...t/personal-insolvency-information-for-debtors

    I believe the TV people basically help you to implement these agreements. They claim to do free consultations and save you lots in interest. I personally haven't heard whether they are good or not. However there's no harm in calling them and asking what they will offer and weigh it up against your other options.
     
  3. Sweeney Todd

    Sweeney Todd Well-Known Member

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    I have personally used a debt assistance organisation. However, the ones you see advertised on TV are typically in it for profit, so I would be hesitant to use them. The organisation I went through is a not-for-profit.
     

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