When your finances are running low and your stress levels are higher than ever before, it can be difficult to know which is the best path to take. Individuals often fail to understand the options available for them to achieve better outcomes, such as a Personal Insolvency Agreement, and so they may file for bankruptcy prematurely.
A Personal Insolvency Agreement is a legal alternative to bankruptcy, involving the establishment of a formal agreement between a debtor and their creditors. With the objective of the agreement being to achieve the best outcomes for both parties, a settlement may be reached in which the debtor will pay an amount that may be less than what is owed, but more than what would be paid if they were to go bankrupt.
A significant advantage of a Personal Insolvency Agreement is that it does not involve the disposal of your assets, such as your home, whereas this may occur is one went bankrupt. Furthermore, a Personal Insolvency Agreement, unlike bankruptcy, will allow you to continue to travel overseas while insolvency procedures are still being performed, which is an advantage for those whose jobs require them to travel.
Another thing to consider is that, whilst both a Personal Insolvency Agreement and bankruptcy will place a mark on your credit file (for a period of five and seven years respectively), the restrictions of sourcing finance after having completed a Personal Insolvency Agreement will not be as strict as they would be with a bankruptcy record on one’s file.
Therefore, when facing financial difficulties, individuals should first consider the option of a Personal Insolvency Agreement. This option allows them to  repay a portion of their debts and so avoid many of the harsh restrictions associated with bankruptcy.
To know if a Personal Insolvency Agreement is right for you, consult with a fully licensed expert who can properly assist you and provide a solution. At Debt Free Australia we can help you with any type of insolvency service, every step of the way, and will carefully explain the differences between your available options to help you make a more informed decision about your financial future. We also offer a free debt assessment.
For impartial and obligation-free advice, or to find out more about the services available at Debt Free Australia, contact 1800 462 767.
 

For many Australians, understanding the reality of their financial situation and knowing if they need professional help is not easy. With bills piling up, it’s easy to miss payments and become lost in growing debts. Many Australians are worried about their financial situation but think that they can solve it themselves, often ‘burying their heads in the sand’.
Avoiding the problem is the fastest way to bankruptcy and insolvency, therefore Debt Free Australia has created a free online debt assessment  tool to help Australians in any financial situation.
You can now easily fill in an online form that will assess your personal situation and work out if you need help from debt experts in just four easy steps.
The free online debt assessment tool will collect details about your personal debt, income and expenses, owned and leased assets and provide advice on whether a formal debt solution is necessary. Having that peace of mind is priceless, and Debt Free Australia wants to make it as easy as possible for all Australians.
Free and confidential advice from debt consultants is available 24/7 over the phone and via email. Free and informative expert videos are available to watch and download from the Debt Free Australia website. The process can be anonymous and without obligation. Thousands of Australians have turned to Debt Free Australia for advice on how to live a life free of debt.
 
If you prefer to call us please call now on our toll free advice line on 1800 462 767.
 

If you have noticed that you are beginning to fall behind in your creditor repayments, and your finances are starting to dwindle, you need to seek some debt free solutions before your situation gets any worse. Managing your budget and finances is not always easy, and if you do find yourself in financial trouble, there are many solutions available to help you free yourself of debt.
As soon as it becomes apparent to you that you can’t make all of your debt repayments, you should contact your creditors straight away to discuss a payment plan to help you get debt free as soon as possible. When discussing the plan, you must be realistic about what you are able to afford, so be sure to take in to account all of your living costs, so you don’t fall further into debt.
Creditors can offer you a range of debt free solutions, and will often agree to an extended period for repayment, or may settle the whole debt on a lump sum payment of only part of the debt, which will help you to be free of debt within a shorter time frame. The plan is about getting debt free, so it is important you are able to make the agreed repayments when they are due so as to not make the situation worse.
Credit card debt can add up before you realise, and the interest you are paying on the debt will only make it harder for you to get out of debt. It is important when considering your debt free solutions that you look at the minimum monthly payments on your cards. The minimum payments are usually never enough to reduce the amount of the debt that you are paying interest on, so wherever possible, try to make extra payments to your credit cards.
It is very easy to fall in to debt and often hard to recognise, so it is important that you act quickly when you do realise you are behind in payments. Consider your debt free solutions straight away to save yourself money on interest in the long term. For information on a range of solutions to help you get debt free, call us today on 1800 462 767.
We operate a 24 hour / 7 days a week advice line and calls to our hotline are confidential and if required, anonymous.
 

Barclays’ chief economist and former treasury economist Kieran Davies has announced that Australian ratio of household debt has hit a record 177 per cent of annual disposable income, while housing valuations are on the rise.
House prices now equate to 4.3 times annual income and 28 times annual rent, both in close proximity to their all time highs.
Australian house prices leapt almost 11 per cent in 12 months (to 31 March 2014) to record levels in absolute terms, with capital gains of 15 per cent experienced in the nation’s largest city, Sydney.
While this is great news for homeowners that have paid off their mortgage, many Australian’s feel that they are neck deep in financial trouble in paying off their dream home. Managing debt and household income is a fine balance, with some finding it hard to keep debt in the all-clear zone.
However, you do not need to worry that you are at the end of your rope yet,  – fine-tuning and amending your Debt Agreement  is always a possibility, as are a range of other options recommended by your Debt Agreement Administrator. Affordable living could be on the horizon for you.
For information on a range of solutions to help you get debt free, call us today on 1800 462 767.
We operate a 24 hour / 7 days a week advice line and calls to our hotline are confidential and if required, anonymous.
 

Today, more and more individuals are falling into the black hole of financial hardship, accumulating their debts to a level whereby they are unable to repay their creditors and are officially declared bankrupt. With 29,514 personal bankruptcies having been declared in Australia between 2013 and 2014, it is increasingly important for individuals to be aware of their finances and work to prevent bankruptcy from occurring.

So, we’ve done our research and present to you the five most common causes of bankruptcy, and how you can prevent yourself from falling into your own personal bankruptcy:

1. Medical Expenses

A study done at Harvard University indicates that the accumulation of medical costs is the biggest cause of bankruptcy, representing 62% of all personal bankruptcies. When one encounters an unexpected and serious injury, this may rapidly result in hundreds or thousands of dollars in medical fees, often draining one’s savings. But with a recent study showing that 78% of individuals who filed for personal bankruptcy in fact were insured, this crushes the common myth regarding the belief that having medical insurance would prevent such financial circumstances.

2. Job Loss and Unemployment

For many, an unexpected termination or resignation may leave them in murky financial waters. If one hadn’t saved appropriately beforehand or weren’t lucky enough to be receiving severance packages or payouts, this may worsen the situation and lead to disastrous outcomes accounting for 22% of bankruptcy filings.

3. Uncontrolled Credit Use

Statistics show that 15% of bankruptcies are caused by the exhaustion of one’s credit cards. If one is constantly paying for groceries, clothes and bills on credit, these costs will rapidly add up until they’ve reached the point where the spender is unable to make even the minimum payment required.

4. Divorce

With divorce rates on the rise, so are the associated costs. Between the struggles of legal fees, child support and the sudden transition into a one-income household, it comes as no surprise that divorce justifies 8% of all personal bankruptcies.

5. Unexpected Disaster

Whether it may be a family death, a natural disaster or a household robbery, the impact of an unexpected disaster on one’s financial savings is tremendous. The cost of funerals, replacements, insurance or relocation of homes may see the depletion of accounts, leaving victims unable to cover their basic expenses and find themselves buried in debt.

To prevent yourself from bankruptcy, be aware of the signs and be proactive in your financial activities:

• Establish an appropriate minimum saving plan.
• Be aware of your job security.
• Limit the amount of purchases you make on credit.
• Aim to pay off debts as quickly as possible.

If you are concerned about personal bankruptcy, call the experts today on 1800 462 767. We operate a 24 hour / 7 days a week advice line. We can give you in-depth advice on how bankruptcy might affect you and your family.

All calls are free, entirely confidential and if required, anonymous.

It is one of the worst feelings in the world. The feeling of helplessness mixed with worry and embarrassment can be damaging to your mental health so don’t ignore these debt warning signs

• Do you struggle to make the repayments each month?

• Do you miss deadlines which results in late payment fees and penalty interest rates?

• Do you receive overdue account letters?

• Has your account been suspended or cancelled?

If you experience any of these warning signs then your debts have most likely already spiralled out of control. If this is the case then you need expert advice & assistance now – do not ignore these warning signs!

How can you lose your home?

If you are forced into bankruptcy due to an unpaid credit card debt then you risk losing your home – it is that simple! Your Trustee in Bankruptcy will take steps to sell your house if you have equity in it.

How can you save your home?

The most likely outcome is that you will lose your home if you become bankrupt. If you own a home and you wish to file for bankruptcy you may be able to sell the house to your spouse (as long as your interest in the house is sold for proper market value). Do not sell your home or any other property without first obtaining independent legal advice and a market valuation for your home. Selling your house at a value which is below market can be “attacked” and “overturned” by a Trustee in Bankruptcy.

If your spouse cannot raise the funds to purchase the equity in the home then you may wish to consider a Debt Agreement or a Personal Insolvency Agreement.

If you enter into either agreement, you will be able to keep your home.

To speak to one of our specialist debt consultants regarding please call us on 1800 462 767. We operate a 24 hour / 7 days a week advice line and calls to our hotline are confidential and if required, anonymous.

You need to act decisively to save your home.

With a wealth of experience and passion to help those in financial distress, Debt Free Australia has earned a well-deserved reputation as experts in the field of debt consultancy. Having too much personal debt can be intimidating and stressful. Knowing how to deal with this problem can be difficult. Choosing the right debt consultant that you can trust can eliminate your stress and will guide you onto the road to financial freedom.

Debt consultancy, also known as debt counselling, is the process when individuals or businesses seek advice from a suitably qualified debt consultant. A debt consultant will assess your full financial situation. It is critical that all aspects of your financial situation are thoroughly assessed. There is no point in setting up a debt management plan if you can’t afford it. For this reason Debt Free Australia has developed sophisticated software that will help us assess whether you can pay back your debts with affordable repayments or whether it is best that you file for bankruptcy.

Our team at Debt Free Australia will closely work with you to ensure you receive the best possible advice. All of our debt consultants are fully trained and are closely supervised by a Registered Trustee in Bankruptcy, so you can be assured that you will always be getting the best financial advice. Our debt consultancy processes will always consider your full financial circumstances including:

•  your outstanding debts;
• your income and expenses; and
• any other financial detail which is relevant

Once we have all of this information we can then design and implement a debt management plan which will put you back on the road to achieving financial freedom.

Debt Free Australia has a proven track record in providing useful, confidential debt consultancy services for everyday Australians. You can be assured that you will receive the best possible advice in bankruptcy, debt agreement and personal insolvency agreements. You should only consider advice from a suitably qualified debt consultant. You can call Debt Free Australia with the confidence knowing that all of our debt consultants are fully trained and supervised by a Registered Trustee in Bankruptcy.

Our advice is free of charge and you can call when it is convenient to you.  We are open 7 days a week from 8am to 8pm

Sometimes finding the right debt management advice can be hard. Debt is a personal, sensitive and difficult topic to talk about and finding the right source of debt management advice can be hard, let alone from someone you don’t know. Therefore finding the right insolvency specialist to give debt management advice is important.

It is easy to try and find debt management advice from the internet, or from a friend who has experience in the topic. However an experienced debt management specialist can give professional advice and find the right solution to suit your needs. With tailored advice for different circumstances, a debt management expert can give both individuals and company directors peace of mind.

Debt Free Australia are leading experts in the field of debt management advice, and has given thousands of Australians the right debt management advice to assist their financial situations. We offer a free and confidential advice line 24 hours a day, 7 days a week, Debt Free Australia continues to be the leading source of debt management advice for everyday Australians.

Here at Debt Free Australia we hear countless stories from people just like yourself who are struggling with debt and can see no way out of it. Over time we have noticed that more and more people are being told the following: “You have too much debt for us to be able to help you, so you need to go bankrupt”.
There can be only two reasons why someone would be given that advice, the first of them being simply that: you have too much debt relative to your income to be able to make a settlement offer which your creditors are likely to accept. There is another reason, however, which is far less honest.
There are many companies operating in Australia that can offer you a Debt Agreement to settle your unsecured debts. A Debt Agreement is a legally binding payment arrangement in which you pay your creditors a percentage of the debt that you can afford, and they accept this percentage in full and final settlement. You can only do a Debt Agreement, if your debt level (and/or your income) is below a certain set limit. If your debt (and/or your income) exceeds this set limit and the company you are speaking to can only offer you a Debt Agreement, then yes, they are unable to help you.
What some places might not tell you, though, is that there is a similar arrangement available for people whose debt (and/or income) go over the set limit. It is known as a Personal Insolvency Agreement and, because of the higher amounts that are being dealt with, it must be administered by a Registered Trustee. The companies that are able to offer you a Personal Insolvency Agreement as an option are fewer in number because of this requirement.
We have heard numerous instances of people who were eligible to propose a Personal Insolvency Agreement to settle their debts but were instead told that they need to go bankrupt. And the likely reason that they were told this is because they got their advice from someone who was not willing to send them elsewhere. Luckily, these people continued searching, and have since been spared the stress of full blown bankruptcy. How many people have taken this unfortunate advice though, we cannot even guess.
To give yourself the best chance of receiving accurate and impartial advice, you should ensure that you are speaking to a reputable company that is able to offer you the full range of formal debt relief solutions. This way you can be sure that you will not be misinformed purely so that your business can be retained. The CEO of Debt Free Pty Ltd is both a Registered Debt Agreement Administrator and a Registered Trustee, which means that no matter what your situation is, we will be able to help you with an appropriate solution. Call us today on 1800 462 767 to receive impartial and obligation-free advice from one of our friendly consultants.

A Debt Agreement Proposal is essentially a settlement offer for your unsecured debts, which must be accepted by your creditors in order for it to come into effect. Your offer is drawn up and presented to your creditors by a Debt Agreement Administrator, who will then be responsible for maintaining the agreement until you have completed it. When the time comes for your proposal to be decided on, there is a vote by your creditors, and for it to be accepted you need creditors holding at least 50% of the value of your debt to agree to it.
Because of this voting requirement, acceptance of your Debt Agreement Proposal can never be guaranteed. Some creditors have a minimum percentage return that they will accept, while others may be concerned with the length of the agreement, and very occasionally there are extenuating circumstances such as fraudulent behaviour which have an impact on a creditor’s vote.
When a Debt Agreement Proposal is lodged with ITSA they charge a fee of $200. The first consequence of lodging a proposal that is not accepted is that you will be out of pocket for that amount. Secondly, it is lodging the Debt Agreement Proposal that places a mark on your credit file, not just the acceptance of it, because it is an act of bankruptcy to lodge a Debt Agreement Proposal. The good thing about a Debt Agreement is that you can keep trying if it is not accepted the first time. For each attempt at a new proposal, however, you will be facing another charge of $200, and if you decide not to try again you will have a mark on your credit file for nothing.
Here at Debt Free Australia we have been administering Debt Agreements since 2006, so we have a very good idea by now of what will be acceptable to your creditors. And we understand that you would not be talking to us in the first place if you could spare a multitude of $200 lodgement fees. That is why we begin with a rigorous assessment process to ensure that we understand every aspect of your financial situation, before recommending a Debt Agreement Proposal that we feel confident will be accepted by your creditors first go. And unlike many other companies out there, we do not ask for any fees of our own until you ask us to go ahead and start preparing the proposal for lodgement. Again we won’t take you down that path until we have thoroughly assessed your case and feel confident that your creditors will accept it.
It is not the end of the world if your Debt Agreement is not accepted, but it is a stressful experience that costs you time and money. To give yourself the best chance of having your Debt Agreement Proposal accepted by your creditors, call Debt Free Australia on 1800 462 767 and ask one of our friendly consultants about a financial assessment.