How is Bankruptcy Different to the alternatives, such as such a Personal Insolvency Agreement?

The thought of being unable to pay your debts in full can be extremely stressful. For this reason, many people find it hard to see the difference between Bankruptcy and a Personal Insolvency Agreement.

Bankruptcy
Bankruptcy is an appropriate solution for those who are on a low to medium income and cannot repay their debts. This option gives people a fresh start. However, bankruptcy does come with consequences, some of which could last longer than the 3 year bankruptcy term. For example you could lose your assets and will have international overseas travel restrictions placed on you, among others.

If you are not eligible for an alternative to bankruptcy and you wish to file for bankruptcy, we see it as our role to firstly educate you about bankruptcy. Bankruptcy laws are very complicated and each case may have its own set of unique issues. We will go through the bankruptcy very thoroughly with you.

Bankruptcy Alternatives
Alternatives to bankruptcy include, a Personal Insolvency Agreement or a Debt Agreement. It allows you to pay back a percentage of your unsecured debts (based on your income and expenses). As such, it also does not come with the harsh consequences of bankruptcy. For example, your ability to travel overseas is unrestricted and your assets will be protected as long as you continue to pay the agreed amount into your personal insolvency agreement.

If you are not eligible for an alternative to bankruptcy and you wish to file for bankruptcy, we see it as our role to firstly educate you about bankruptcy. Bankruptcy laws are very complicated and each case may have its own set of unique issues. We will go through the bankruptcy very thoroughly with you.

To find out whether Bankruptcy or a Personal Insolvency Agreement is the best solution for you, speak to one of our experts at 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.