Your Options for Getting Out Of Debt


HARDSHIP –You are able to go to the bank to get a small period of Hardship Assistance. This time may stop your payments for around 3 to 6 months and allow you to get back on your feet to start resuming normal payments. Call us now and ask us this can be done.

DEBT CONSOLIDATION – You could do this by:

REFINANCING your current debts. This means getting one loan to cover all your existing debts. This allows you to make one affordable payment on all your debts. Interest does apply with this option.This is an informal option. or

PART 9 DEBT AGREEMENT -You can Consolidate all your debts into one easy payment by ‘Applying for a Part 9 Debt Agreement. This is a Formal Government Program. A Debt Agreement is a binding agreement between you and your creditors where creditors agree to accept a sum of money that you can afford. Your repayments are based on your capacity to pay having regard to your income and all of your household expenses.

PRIVATE AGREEMENTS – You may want to try to reach an agreement with your creditors. You can contact your creditors directly to request:

Some of these options may be legally enforceable and you may wish to seek your own independent advice before deciding.


This is where a lump sum offer is made to pay out all your debts at a reduced amount.

EXAMPLE: You owe $30,000.00 on 4 different credit cards.

For an easy example we will say you owe each one exactly $7,500.00.

Each creditor is offered $4,000.00 to cancel your debt.

They all agree. This means that for $16,000.00 you have paid off $30,000.00 of debt.

It’s a good solution if you can get the $16,000.00 from someone.

 VOLUNTARY BANKRUPTCY – Bankruptcy is a legal process where you’re declared unable to pay your debts. It can release you from most debts, provide relief and allow you to make a fresh start.

DEBT MANAGEMENT – Talk to a financial counsellor can help you through this process they can talk to you about your options and may talk to your creditors on your behalf.

Help with budgeting and refer you to other sources of assistance.


A debtor may seek temporary relief from recovery action taken by a creditor by completing Form 5 of the Bankruptcy Act 1966. Once such a declaration is accepted by the Official Receiver, it prevents unsecured creditors from enforcing their debts for a period of 21 days. During this time, debtors can consider their options under the Bankruptcy Act.

LIQUIDATION – If you run a Business you do have an option to go into Liquidation.

GARNISHEE – If you have a Garnishee Notice that has been sent to you. Please call us we can help you with this Court Action. We may be able to stop this Court Action.

COURT ACTION – If you have a Court Action that has been sent to you.

  Please call us we can help you with this Court Action. We may be able to stop this Court Action.


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