Your Debt Options

BANKRUPTCY – Approximately 15,000 to 20,000 people go bankrupt each year for many different reasons.  Bankruptcy releases you from most of your unsecured debts with a few exceptions such as child support.  It allows you to make a fresh start.  However, it has consequences regarding your assets and credit record among other things.  You can enter into bankruptcy yourself or creditors can bankrupt you through the courts (which some people find more stressful).  If creditors are pursuing you, you can lodge a notice of intention to declare bankruptcy which will give you time to prepare your bankruptcy paperwork.  We can help you with this if you would like to call us.

DEBT AGREEMENT – This is also a formal legal process whereby you enter into a binding agreement with your creditors, usually to accept something less than full payment by a number of instalments. Like bankruptcy, it has consequences for your credit record.  You must stick to the payments or the debt agreement can be terminated.  You can then be bankrupted.

HARDSHIP ASSISTANCE – You might be able to negotiate with the creditor, especially if it is a financial institution, to get a small period of hardship assistance, for example, by stopping your payments for 3 to 6 months to allow you to get back on your feet. We can help you with this if you would like to call us.

DEBT CONSOLIDATION – You could do this by refinancing your current debts. This means getting one loan to cover a number of your debts. This may result in paying less interest on your debts.

INFORMAL AGREEMENTS – It might be possible to negotiate with your creditors to request more time to pay, enter into a flexible payment arrangement or settle the debt.  We can help you with this if you would like to call us.

DEBT MANAGEMENT – A financial counsellor can talk to you about your options, assist you with budgeting and refer you to other sources of assistance.

GARNISHEE – If your employer has been served with a garnishee order, your employer has no choice but to comply with the order.  In that case, your only realistic options are to seek a variation of the garnishee order or to file for bankruptcy.  

COMPANY DEBTS – Strictly speaking, company debts are not yours as director of the company unless they are certain taxation debts or you guaranteed the debts.  Getting of company debts may involve putting the company into administration or liquidation.  However, you may still be left with the taxation or guaranteed debts.



1300 855 388

%d bloggers like this: