According to the OECD (2021),Australians have the fourth-highest consumer debt level in the world! And given the rapid economic changes caused by COVID, many individuals and businesses have been left in financial ruins, with no idea how to get on top of unmanageable debt and struggling to make ends meet. With over 20 years’ worth of industry experience, it’s safe to say, “we’ve seen it all”. We’ve helped thousands of individuals and sole traders to overcome unsecured debts ranging from tax, credit cards and personal loans through to payday loans and even BNPL services such as AfterPay! However, unfortunately, it has been our experience that most people simply don’t understand their options. Fortunately, as debt experts, we understand the range of solutions available to Australian consumers and can assist by:
- Clarifying the range of options available when you’re struggling to pay.
- We go out of our way to explain the benefits and risks of a given debt solution, and the important implications and obligations you need to be aware of; and
- Based on your unique financial situation, we will tailor a strategy to help you overcome your financial difficulties.
o So, when you’re stuck with bad debt, what are your options?
- Try to pay back the debt.
- Negotiate a debt settlement with your creditors, which may be:
· An informal settlement proposal privately agreed between yourself and your creditors; or
· A formal debt settlement proposal such as a Part 9 Debt Agreement or Part 10 Personal Insolvency Agreement.
- If you don’t take action in regard to outstanding debt, this is likely to result in your creditor/s taking matters into their own hands via legal debt recovery action through the Civil Court System, which may result in:
· Being served a legal notice.
· Having a court default judgment entered against you.
· Having your wages or bank account garnished.
· Having your personal property repossessed; and
· The worst-case scenario, having a Court-ordered bankruptcy (otherwise known as a Sequestration Order) issued against you, which will add more costs to the amount of debt you will be required to pay.
- The final option is voluntary bankruptcy – filing a debtor’s petition.
o In our role as personal insolvency professionals, it is our duty to help people understand their options and the implications. Looking down the barrel of bankruptcy can feel like the end of the world – but understanding where you stand and receiving the right advice can help alleviate the stress and uncertainty. Are you ready to take the next step? Call us on 1300 781 850.