If you are struggling to repay your debts on time and are considering applying for bankruptcy, it is important that you weigh up all of the options available to you before you proceed. Declaring bankruptcy can be a life changing decision and should be used as your last resort.
Bankruptcy carries serious consequences for your financial future, including difficulty in obtaining credit for a considerable amount of time. You could also lose significant assets such as your home and, depending on your industry, your employment could be affected.
Declaring bankruptcy was the only legal solution to debt in the past, but now Debt Agreements – a relatively recent initiative by the Australian Government –offer a positive legal alternative for Australians who want to avoid the harsh consequences of filing for bankruptcy. A Debt Agreement allows one to pay their creditors an agreed amount – usually a percentage of the current amount owing – over a set period of time. Once the agreement has been completed, any remaining balance will be legally written off.
Debt Agreements have helped thousands of Australians to regain control of their finances. According to the Australian Financial Security Authority (AFSA), Debt Agreements are increasing in popularity as a solution for unmanageable debt. As a result of this popularity, the number of Australians who filed for bankruptcy in the December quarter of last year decreased – and it is expected to continue decreasing over the coming years.
At Debt Free Australia (DFA), our Registered Debt Agreement Administrator can supervise your entire Debt Agreement from start to finish. Our CEO is registered with both AFSA and the Australian Securities and Investments Commission, which means that we are fully licensed and qualified to handle every single aspect of the process, and will not pass your case around from one company to another.