Experiencing personal financial difficulties and need some debt relief? Debt Free Australia has got you covered. We offer a range of solutions that will help you get debt relief so that you can prepare for a better financial future.
Debt Relief Solution 1: Debt Agreement
A Debt Agreement refers to an arrangement established between the debtor and his or her creditors. It is a formal settlement whereby the debtor agrees to pay a proposed sum to creditors over a certain period of time. It usually runs from 3 to 5 years.
The value of a Debt Agreement comes in its ability to give the debtor some breathing space from creditors hassling them to pay their obligations, providing some much-needed debt relief. It enables them to work out an agreement in which all parties are satisfied. Debtors usually pay less than what is owed, and the whole balance is written off.
In order to be eligible to enter into a Debt Agreement, your finances must not surpass the requirements established.
Debt Relief Solution 2: Personal Insolvency Agreement
A Personal Insolvency Agreement is similar to a Debt Agreement in the sense that an arrangement is set up between a debtor and his or her creditors. It provides debt relief to people because it enables the debtor to pay back their fees without creditors constantly harassing them.
If your finances exceed the thresholds for a Debt Agreement, then you are no longer eligible to enter into a Debt Agreement, and must enter into Personal Insolvency Agreement.
Debt Relief Solution 3: Bankruptcy
Another debt relief solution is Bankruptcy. However, there are serious consequences to Bankruptcy and so it must only be considered as a last resort.
Bankruptcy lasts for 3 years after your Bankruptcy application form, Statement of Affairs, is lodged and accepted by the Australian Financial Security Authority (AFSA). Most personal assets will be sold in Bankruptcy, with only a few exceptions such as most essential household goods and motor vehicles and tools of trade under a certain amount.
If you are looking for advice personally tailored to your situation about any debt relief solutions, then please contact Debt Free Australia. DFA are passionate about helping Australians get out of debt and prepare for a better financial future. Please contact us on our 24/7 toll-free hotline on 1800 676 598 to speak to one of our friendly and professional debt relief consultants.