Bankruptcy Alternatives |

Navigating your finances can be a difficult and complex process, especially when faced with financial difficulty. Bankruptcy is an option to help manage and resolve your debts, however it’s not the only option. There are a range of alternatives available in Australia which could help you manage your finances without having to declare bankruptcy.

Debt Agreements

Debt agreements are an alternative to bankruptcy and are regulated by the Australian Financial Security Authority (AFSA). They are a form of debt relief available to those with unsecured debts under $113,425.90. Debt agreements allow you to make a payment plan with your creditors, which can reduce your debts and help you pay them off in an affordable way.

Part 9 Debt Agreements

Part 9 debt agreements are similar to a debt agreement however, they are available to those with unsecured debts over $113,425.90. This type of debt agreement does not require creditors to agree to the terms and can allow you to pay off your debts over a period of up to 10 years.

Financial Counselling

Financial counselling is a free and confidential service available to anyone who is experiencing financial difficulty. Financial counsellors can help you assess your financial situation and provide information and support to help you make the best decision for your finances. They can also help with budgeting, debt management, and understanding your rights and responsibilities as a consumer.

Debt Consolidation

Debt consolidation is another alternative to bankruptcy, which allows you to combine multiple debts into one loan with a lower interest rate. This can help reduce your monthly payments and make it easier to manage your debts. However, it’s important to note that debt consolidation won’t necessarily reduce the overall amount of debt you owe and you may still have to pay back the full amount.

Personal Insolvency Agreement

A personal insolvency agreement (PIA) is an agreement between you and your creditors that allows you to make a payment plan to settle your debts over a period of time. This type of agreement is only available to those with unsecured debts over $113,425.90. PIAs can help you avoid bankruptcy and can help you manage your debts in an affordable way.