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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

    17 October 2016
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    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

    9 April 2014
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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 instalments 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.

    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.
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  3. Sweeney Todd

    Sweeney Todd Well-Known Member

    2 February 2016
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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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