How is a Debt Agreement better than Bankruptcy?
There are several bankruptcy alternatives, one of which is a Debt Agreement. When deciding which option to go for you should consider the differences between the two and how they may help solve your financial troubles. A solution that works for one person may not work for another, so it is important for you to understand what each option entails before you make your decision.
Assets are a common reason why people choose a debt agreement over bankruptcy. If you own an asset that you don’t want to lose, such as a house or a car, then a debt agreement is probably better for you. Under a debt agreement, your assets will not be sold and they will be protected. The only way for you to lose them is if you do not pay any finance owing on them.
There is a social stigma attached to bankruptcy and some people still find awkward or uncomfortable talking about it. The idea of being labelled as a bankrupt should not evoke shame, but it unfortunately does for some people. As a bankrupt, your status will also go on the National Personal Insolvency Index (NPII), a publicly available database, but it is important to know that you must pay a fee to search it so most people don’t unless they are lending money to you.
Although you can travel overseas whilst bankrupt, you cannot do this without first obtaining permission from your bankruptcy trustee. However, a debt agreement allows you to keep your passport and you can travel freely.
If you are exploring your personal debt solutions and would like to speak to a professional to learn more about them, 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.