Debt Free Australia is the best company to contact to help you with business debt. At Debt Free Australia, we know that every case is different and we will take the time to find the best solution to help solve your business debt.
Our team of friendly debt advisors will personally work with you to ensure that you fully understand all of your options. Deciphering between personal debt and business debt can be complicated and professional skill and knowledge is required.  Here at Debt Free Australia our debt advisors have been professionally trained to help people identify the differences between business debt and personal debt.
If you have become personally liable for business debt and you also have personal debt which you can no longer afford to repay, then you should consider our debt solutions.  Our debt solutions range from personal bankruptcy but also include options to avoid personal bankruptcy like a Debt Agreement  or a Personal Insolvency Agreement.
If you feel you need help with your business debt, then call our professional debt advisors on 1800 462 767 for free and impartial advice.

Amidst all the stress and confusion of trying to find a solution for your debt problems, it can sometimes be hard to figure out exactly what you are being offered, and whether or not it is the right solution for you. This is especially true when you are being offered advice from a number of different sources, some of which might not be able to offer you all of the products that are available to you.
A Personal Insolvency Agreement  is often seen to be the same as, or practically indistinguishable from, Bankruptcy.  Both a Bankruptcy and a Personal Insolvency Agreement will place a mark on your credit file.  Bankruptcy will be listed on your credit file for a period of (7) seven years, whereas a Personal Insolvency Agreement will only be listed on your credit file for five years (unless your agreement runs for a longer period of time). Apart from that there are other important differences between a Personal Insolvency Agreement and Bankruptcy, and it is these differences that will help you to decide whether or not it is the right option for you.
The main difference between a Personal Insolvency Agreement and Bankruptcy is that under a Personal Insolvency Agreement you do not have to worry about losing your home as it will be protected. Whereas Bankruptcy works by selling your assets to pay your debts, a Personal Insolvency Agreement is instead a legally binding payment arrangement (usually over a period of time). So as long as you adhere to the terms of the Personal Insolvency Agreement, you will not have to worry that your Trustee will try to have your home sold.
Another important difference is the fact that you are free to travel overseas if you are in a Personal Insolvency Agreement. This factor is extremely important for those people who are required to travel for their employment or just like to travel overseas for holidayss. Other differences include less severe restrictions if you wish to apply for  more credit, which can be advantageous for the self-employed, and different rules when it comes to the running of one’s business whilst under an arrangement.
Most people wish to avoid bankruptcy because of the stigma or a sense of responsibility to repay their debts, but for a lot of people it is essential that they avoid the harsh restrictions  placed on them by bankruptcy. To know if a Personal Insolvency Agreement is right for you consult with an expert who can properly advise you and who is fully licenced to provide the solution. Don’t deal with a company who will later refer your case to a Trustee in Bankruptcy after you have paid them a set-up fee. Here at Debt Free Australia our CEO is a Trustee in Bankruptcy so we can help you from the beginning with setting up a Personal Insolvency Agreement or Bankruptcy. We will carefully explain the differences between the two solutions and will let you decide after you have become fully informed. Call us today on 1800 462 767 for impartial and obligation-free advice.

What is a Debt Agreement?
A Debt Agreement is a formal arrangement that you can enter into with your creditors that will allow you to settle your debts with a legally binding payment plan. It effectively freezes your debt at the level it is at now, meaning that no more interest or charges are added, and you will offer your creditors a percentage of what is owed over a period of time (usually 3-5 years). As you can imagine, people would be offering Debt Agreements all the time if there were no negative consequences, and for that reason they are designed to ensure that the only people proposing them are those who really need to.
What are the cons of a Debt Agreement?
When you lodge a Debt Agreement Proposal for your creditors’ consideration, there will automatically be a record kept of this in two places. One of them is the National Personal Insolvency Index , which is a government register designed to keep track of who has sought the assistance of a formal debt solution. This record is permanent, but one also has to pay a fee to search the database, so you will find that it is usually only accessed in extenuating circumstances.
The record that concerns most people is their credit file, which will have a mark on it for 5 years from the time that you lodge your Debt Agreement Proposal (assuming your agreement doesn’t run for longer than 5 years). What this means is that whilst you are in your Debt Agreement you will not be able to gain credit, and for the few years after you come out of it you might find it a little more difficult than before. It will always be up to the individual finance company as to how they react to the fact that you have entered into a Debt Agreement when they assess your application for credit.
What are the pros of a Debt Agreement?
A Debt Agreement has many positive aspects to it, however, and for some people these pros will outweigh the cons. After you have completed your Debt Agreement you will be legally released from the debts which you owed at the time you lodged your Debt Agreement Proposal. Many people find that a Debt Agreement helps them control their money and spending habits as the Debt Agreement is based on a strict budget.  Many of our clients have told us that they have even been able to save money whilst also paying off the debt included in the Debt Agreement.
Five years may seem like a long time to have a mark on your credit file, but if you consider how long it would take you to pay back your unsecured debt if you kept going the way that you are, you might actually find that the trade-off is worth it. And if you are truly insolvent and unable to pay your debts as they fall due, whilst still maintaining a comfortable standard of living, it is likely that your situation with credit is going to continue to worsen.  In many cases people find that their credit file already has marks recorded against it, so in this sense a Debt Agreement being recorded against it isn’t going to make it much worse. It is for these people that a Debt Agreement is designed, those for whom the positive aspects are going to make the negative worthwhile. Speaking to a reputable Debt Agreement Administrator will help you to determine whether or not a Debt Agreement might improve your overall financial situation and quality of life.

If you have received a local or district court judgment for a debt which is more than $5,000, then it is possible that the creditor chasing you for payment will then apply to the Official Receiver at AFSA for a bankruptcy notice to be issued against you.
What is a bankruptcy notice?
A bankruptcy notice is a formal notice issued under the Bankruptcy Act, and if you ignore the notice, the creditor will be able to apply to court for a sequestration order (i.e. a bankruptcy order) to be made against you. This application to court is also known as a Creditors’ Petition. Once a Creditors’ Petition has been filed in court it will allocate a hearing date.  If the debt remains unpaid at the time of the hearing it will issue a sequestration order and you will be declared bankrupt by the court.
What can I do if I have been served with a bankruptcy notice?
You may be able to stop a creditor from forcing you into Bankruptcy by proposing a Debt Agreement or a Personal Insolvency Agreement.  If you would like to learn more about your options call us now.  Don’t delay if you want to avoid bankruptcy.
Our hotline is open 24 hours a day and will be answered by an experienced debt consultant.  Call us now on 1800 462 767.