The federal government introduced The Bankruptcy Amendment (Enterprise Incentives) Bill 2017 late last year. This is why, at Debt Free Australia (DFA), we want to make sure you know how these changes will affect you.

These new laws aim to decrease stigma around bankruptcy and give bankrupts a ‘fresh start’. The negative effects caused by the harsh bankruptcy laws that are currently in place discourages many potential entrepreneurs from pursuing their business endeavours.

What changes have been proposed?
If passed by Parliament the new bankruptcy bill will reduce the default period of bankruptcy from three years to one year.

What will this mean for me?
These changes gives bankrupts a chance to re-engage in business sooner and take on entrepreneurial activities and to start new companies. A reduction in the stigma associated with bankruptcy allows the re-assimilation process to be smoother and feel less demeaning.

Life after bankruptcy can feel intimidating to some people. That is why at Debt Free Australia, we are always ready to help you explore your personal debt solutions. If you would like to speak to a professional to learn more about them, then please contact DFA. We offer a FREE initial consultation so that you can get unbiased, expert advice on which one is right for you. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 462 767.

In recent news, AFSA (Australian Financial Security Authority) have released statistics showing that Australians have recorded the highest rate of bankruptcy since June 2016. There has been a sudden increase in the number of Australians declaring bankruptcy, which may appear to be a bad thing, however, with recent developments it is possible that some Australians see it as the best option.

Of course, bankruptcy does impact your credit rating and places certain restrictions on you, however, with amendments currently being proposed, bankruptcy may soon become an even more viable option to many Australians. If you are under extreme financial hardship and you can no longer manage your debts, bankruptcy will relieve that pressure. Any debt that isn’t tied to a security (credit card, personal loans) will be written off once you declare bankruptcy.

Although obtaining credit will prove to be a difficult task for up to 5 years, a bankruptcy provides you with a fantastic opportunity to start afresh and will allow you to rebuild your personal financial strength.

If you would like to learn more about bankruptcy and any other personal debt solutions it is best to contact a professional to understand what best fits you. Please contact Debt Free Australia where we offer a FREE initial consultation so that you can get unbiased, expert advice on how a bankruptcy can be best for you. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 462 767.

Bankruptcy is often labeled as a long and tedious process that can leave you with various negative implications for the future. A new bankruptcy bill was introduced into Federal Parliament on the 19th of October 2017, which proposes a few fundamental changes to the bankruptcy regime.

One of the key changes proposed in the new bankruptcy bill is that the duration of bankruptcy will be reduced from 3 years down to 1 year, however, if you are liable to pay income contributions that obligation will stay in place for 3 years (ie for another 2 years after you are discharged from bankruptcy). However, if you are not compliant and you breach certain obligations under the Bankruptcy Act, your trustee will still have the power to extend your bankruptcy up to 5 or 8 years depending on the nature of the breach.

If you would like to speak to a professional to learn more about your options, then please contact Debt Free Australia. We offer a FREE initial consultation so that you can get unbiased, expert advice on which one is right for you. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 462 767.

At Debt Free Australia, we are passionate about helping Australians get out of debt. We understand that it is a challenging and stressful process and that each person’s situation is different. This is why we offer a full suite of debt solutions so you can choose the option that best suits your needs. Whichever one you choose, however, we will be there every step of the way to make the process as smooth as possible.
 

Debt Agreement

A Debt Agreement is a formal agreement between the debtor and his or her creditors. It is an arrangement in which the debtor and creditors agree on a repayment plan that usually lasts for 3 to 5 years.
To be eligible for a Debt Agreement, you need to meet certain thresholds such as having unsecured debts. Click here to see the Debt Agreement thresholds.
A Debt Agreement is great because it means that you will still be allowed to travel overseas, keep your car and protect your house.
 

Personal Insolvency Agreement

A Personal Insolvency Agreement is similar to a Debt Agreement in the sense that it is an arrangement with your creditors that usually lasts for 3 to 5 years but it is for people who have larger amounts of debt or earn a higher income. Click here to learn more about a Personal Insolvency Agreement. Likewise with a Debt Agreement, it is governed under the Bankruptcy Act though it must not be confused with Bankruptcy.
 

Bankruptcy

Bankruptcy is another option debtors may consider when trying to get out of debt. However, it does impose more limitations than other options which is why we try to explore other options for our clients before considering Bankruptcy.
You can apply for Bankruptcy on a voluntary and involuntary basis and it lasts for typically 3 years once the Australian Financial Security Authority accepts your application.
 
To find out more about each of these debt solutions that DFA offers, please contact us on 1800 462 767 for a FREE initial consultation with one of our friendly and professional debt consultants.

If you are looking at your options to get out of debt, one solution that you may have come across is a Debt Agreement.
 
A Debt Agreement may be governed under the Bankruptcy Act but it is important to know what it is not Bankruptcy but an alternative to Bankruptcy. It refers to a formal agreement between the debtor and creditors. This agreement stipulates an agreed payment plan to ensure that Debts are repaid, and usually, you can settle your debts for less than what is owed. A Debt Agreement will usually last for 3 to 5 years. After it ends, the balance will be legally written off.
 
There are many advantages of a Debt Agreement. For example, the interest of on the debt will be frozen, you will not be restricted to travel, you will only pay back what you can afford, and you won’t be hassled by your creditors.
 
In order to be eligible for a Debt Agreement, you need to meet certain requirements.
 
Debt Agreement Checklist:
 

1. You are insolvent meaning that you are unable to pay debts as and when they fall due; and
2. Your unsecured debts and income fall below the thresholds, click here to see the current thresholds.

 
If you meet the requirements and wish to set up a Debt Agreement, you must choose a Registered Debt Agreement Administrator (RDAA). Your RDAA will then confirm that your proposed Debt Agreement is sustainable and will prepare and lodge the application with Australian Financial Security Authority (AFSA). They will then pass on the proposal to your creditors who have 20 days to come to a vote on it. In order for your proposal to be accepted, creditors holding 50% of the value of the debt must approve it.
 
If they do, then every creditor, whether they voted or approved it, will be bound by the terms and conditions of the agreement.
 
If you would like to learn more about a Debt Agreement or get expert advice on whether it is the appropriate debt relief solution for you, then please contact Debt Free Australia. Our toll-free hotline is open 24/7 so our friendly and professional Debt consultants will always be available to help. Call us on 1800 462 767.

If you are looking to get debt free, then one debt relief solution that you may consider is a Debt Agreement. A Debt Agreement is an arrangement between the debtor and their creditors in which the debtor is to pay an agreed sum over a certain period of time, usually 3 to 5 years, to repay their debts.
A Debt Agreement is governed under the Bankruptcy Act. However, it should not be confused with bankruptcy as it is an alternative to bankruptcy.
How to propose a Debt Agreement?
If you want to propose a Debt Agreement to your creditors, then you need to enlist the help of a Registered Debt Agreement Administrator (RDAA). This person should have the minimum level of accountancy qualifications.
The RDAA is there to assist you to create a realistic Debt Agreement that will also most likely gain the approval of your creditors. They will work with you to ensure that the amount that you stipulate is one that you will be able to realistically maintain.
Once the proposal is drafted, it must then be lodged with the Australian Financial Security Authority (AFSA). Once it is approved, AFSA then passes on the proposed Debt Agreement to your creditors. In order for your Debt Agreement to be accepted, creditors that make up at least 50% of value of the debt must approve it.
For more information on Debt Agreements, please contact Debt Free Australia to speak to one of our friendly and professional consultants. Debt Free Australia runs a free 24/7 hotline so you can call us whenever is convenient for you. Contact us on 1800 462 767 for free and confidential advice now.

Are your debts piling up? Are you starting to lose sleep over your financial situation? Are you wondering how to get out of debt? Here are 5 steps that you can implement in your life to help you gain more control over your finances.
 

1. Create a budget.

 
The first thing that you can do is to create a budget. A budget will help you manage your finances and control how much you are spending and what you are spending it on.
A budget means that you will be living below your means, not over-spending on excessive items or services that you do not need.
However, it is crucial that whatever budget you create is realistic. There is no point in developing a budget that you will inevitably break, as this will help neither your financial situation nor your morale.
 
 

2. Earn extra cash

 
Another tip on how to get out of debt is to keep your eyes open for opportunities to earn some extra cash. This could mean renting out usable equipment or tools that are gathering dust in the back of your shed, or renting out free space. It could also mean selling unwanted clothes, household items or holding a garage sale.
 
 

3. Eliminate unnecessary expenses

 
As well as earning extra cash, you can also get out of debt by trimming expenses. This means going over your budget, seeing what you spend money on and if you can reduce or eliminate some expenses. For example, do you eat out every Saturday? Try a home cooked meal. Do you have a gym membership that you hardly use, or a magazine or book subscription? Cancel them until you get control back over your finances.
 
 

4. Prioritise your debts

 
If you want to learn how to get out of debt, then you need to learn how to prioritise your current debts. While it is important that you try to pay them all, some debts should be paid before others. Debts that should be given first priority include your mortgage or any payments that have high-interest fees, as these will accumulate over time.
If you are wondering how to get out of debt, implementing these 5 tips can assist you. However, if you find that your debts have spiralled out of control and you need to talk to a debt consultant, then please contact Debt Free Australia. DFA are passionate about helping Australian’s secure a financially brighter future and have over 20 years of experience in the industry. Call us on 1800 462 767 to ask one of our licensed debt experts for free and confidential advice now.

If your client is experiencing financial distress, you are probably looking at some debt solutions that can help get them back on track with their finances. Here are three of your options.
Debt Agreement
A debt agreement is a formal agreement established between an individual and their creditors. In a debt agreement, creditors agree to accept a certain amount of money over a period of time to settle debts. Once the debt agreement is finalised, creditors cannot attempt to recover the rest of the debts owed.
The debt agreement administrator will prepare a proposal which will lay out what your client can afford to pay. This proposal is sent to their creditors who can then choose to accept or reject it. It is important to nominate a realistic amount that your client can afford, while still keeping their creditors satisfied.
Whilst a debt agreement may seem like a great option, it is important to note that debt agreements will not extinguish your client from every single debt owed. Some debts that are not covered by this debt solution include child support, debts incurred by fraud or any court-ordered payments.
Personal Insolvency Agreement
A personal insolvency agreement (PIA) is similar to a debt agreement. A PIA is a formal agreement in which a majority of your client’s creditors agree to the proposition put forward to repay debts either in full or in instalments.
In order to propose a PIA, your client must be insolvent, be present in Australia or have an Australian connection, or have not offered a PIA in the previous 6 months.
Bankruptcy
Bankruptcy is the debt solution that people must consider as a last resort due to the serious implications that will entail should your client file for bankruptcy.
Some serious consequences of bankruptcy include not being able to travel overseas without permission and your client’s name permanently remaining on the National Personal Insolvency Index. Their future ability to obtain credit will be affected and they may not be released from all debts.
Which solution is best for your client?
If you would like to discuss the available options for your client, then contact DFA to speak to one of our friendly and professional consultants who will use their experience and knowledge to recommend viable debt solutions. Call 1800 462 767 now.

If you’re considering bankruptcy, be sure to contact Insolvency Services Australia to assess your financial situation and receive personal debt solutions at the lowest price, guaranteed.
Personal debt solutions, which include Debt Agreements and Personal Insolvency Agreements, are legally binding payment arrangements governed by AFSA. They will give you legal protection from your creditors so you can avoid becoming bankrupt.
Debt Free Australia attempts to steer you away from bankruptcy by working closely with you to assess your financial situation and determine the best possible personal debt solution for your individual case.
Here, DFA provides a breakdown of the two most common personal debt solutions.
Debt Agreements and Personal Insolvency Agreements
Both these personal debt solutions are quite similar and differ depending on how much you earn and how much you owe your creditors.
The agreements provide an affordable payment plan for your unsecured debts which is negotiated with your creditors. Once the agreement is set up and agreed upon, all interest on your debts will be frozen. Thankfully, the agreements are spread over a flexible period of time to make payments a lot more affordable.
By applying for one of these personal debt solutions, you will have peace of mind knowing you are protected from any unsecured creditors threatening you with legal action or bankruptcy.
It is possible that your creditors will not accept your Debt Agreement proposal, however in our experience this is not common. If by chance this personal debt solution is not accepted, you will still have the option of submitting a revised proposal or applying for an informal hardship arrangement with your creditors.
In the rare instance that you need to consider bankruptcy, DFA can help you with that as well.
For more information on DFA and our personal debt solutions, call Debt Free Australia a call on 1800 462 767

Nimble has proven themselves to be not-so-nimble when it comes to “smart little loans”. Being known for approving loans to customers at very high interest rates, they have been caught up in a controversy storm following an investigation by the Australian Securities and Investments Commission. After ASIC looked into their lending practices, they discovered that Nimble had failed in its duty of care to be responsible in approving loans for consumers.
It was found that Nimble ASIC had not been properly assessing the financial situation of their customers looking to take out payday loans. Instead, they had been using unreliable algorithms to determine a customer’s ability to take out loans that did not properly take into account customer’s financial information. Thus, they failed to “make proper inquiries of consumers’ requirements and objectives,” as instead they were “of a general nature and resulted in not enough information for Nimble to fully understand the consumer’s needs.”
Subsequently, Nimble “did not take sufficient or appropriate steps as required by law before providing a loan to the customer.” They “failed to consistently recognise” when consumers were making repeat loan applications within a short period of time.
As a consequence of Nimble’s inefficiency when assessing a consumer’s ability to take out payday loans, the company must pay more than 7,000 customers in excess of $1.5 million through a remediation program run by Deloitte. This refund cannot take more than 6 months to be completed.
ASIC also recommends customers affected by Nimble’s lending practice should contact Nimble first, and if they still remain unsatisfied with the outcome, should lodge a complaint with the Credit and Investments Ombudsman.
In addition, a $50,000 donation to Financial Counselling Australia must be made under Nimble’s name, as well as a review of its current business operations and engagement with the consumer credit regime, by an external compliance consultant.
Nimble chief executive, Sami Malia, spoke out following the investigation. He states that the company “regrets any inconvenience” caused to consumers and are working to rectify these concerns.
“Nimble has identified and promptly resolved these issues. They affected around 1.2 per cent of loans written during the period from 1 July 2013 to 22 July 2015”.
“These application assessment issues were entirely unintended and were resolved in collaboration with ASIC. There has been no adverse findings against Nimble”.
Mr Malia also comments “Nimble is always striving to have the best credit assessment systems and has made a significant investment in its application assessment processes that allow Nimble to continue making responsible lending decisions.”
ASIC’s investigation not only highlights Nimble’s lending practices, but it also brings attention to the need for stronger laws in regards to the payday lending industry.
ASIC Deputy Peter Kell, in a statement, said, “This outcome is a further example of ASIC’s strong focus on the payday lending sector. This remains a high priority area for ASIC, and we expect the industry to continue to lift its game.”
Gerard Brody, chief executive of the Consumer Action Law Centre, weighed in on the situation.
When asked about his thoughts on the Nimble investigation, he stated, “To be honest, I found it unsurprising.”
“The consumer sector has known for years there is a systemic problem in the payday lending industry and ASIC’s probe has confirmed our concerns that these lenders aren’t doing the required due diligence and ensuring people are able to repay loans.”
“While ASIC can take action and get people $1.5 million in refunds, that’s after the harm has occurred.
“It really underscores why we need stronger laws to protect customers.”
Mr Brody recommends an interest rate cap of 48 per cent on all consumer credit. This is in comparison to the current interest rate of small-amount loans under $2000 that can have annual interest rates of up to 400 per cent.
He believes, “In our experience with clients, people have a really ambivalent relationship with payday lenders.
“They’re often in a financially desperate situation and see this as the answer that’s going to give them some relief, but they quickly become aware that the relief is short-term and when the repayments roll around realise they’re being ripped off.”
This is why Consumer Action also calls for a stricter limit on how much a borrower’s income a payday lender can deduct to repay a loan; being capped at 5 per cent.
However, chief executive of the National Credit Providers Association peak body representing payday lenders, Phil Johns, disagrees with this sentiment.
He counteracts, “Nimble does not lend to anyone receiving benefits, so to draw conclusion that everyone using ‘payday loans’ is ‘financially desperate’ is misleading in this case and does not represent the vast majority, who use this product successfully.”
Mr John’s comments that payday loan interest rates should not be calculated annually as it is unfair for consumers whose loans do not run for a year minimum.
“The key word is ‘annual’ and does not become meaningful until a loan runs for one year, so for any loan that runs for less than a year it is misleading.”
Mr Johns also predicts that any payday lender company who is focused on short-term sales rather than compliance with consumer credit regime will “not be in business in five years’ time.
“It is clear under principles based legislation, lenders must take the most conservative view of the law, not necessarily the rule of law. A constant theme from ASIC is there must be individual assessment of a consumer’s situation.”
ASIC’s probe into Nimble’s lending practices is not the first time Nimble has been in the middle of a controversy. Prior to this investigation, Nimble had been criticised for its TV advertising which supported customers taking out payday loans for day-to-day living expenses as an alternative to taking advantage of any hardship programs offered by utility providers.