Are you staring down the barrel of declaring yourself bankrupt in Australia? If you are facing financial hardship then you are not alone. We understand that everyone can hit hard times on occasion. However, this is no excuse for someone leading you down the path of declaring bankruptcy. Don't be sucked into entering into a debt agreement or declaring bankruptcy. We are here to let you know that we can offer you an alternative solution.
We understand that everyone faces financial strain at some point in their lives. In Australia, even households and businesses that seem to be thriving can experience unexpected hardship due to life changes, job loss, or factors that are out of our control. That’s why, here at Get Out of Debt Today, we offer you expert advice and consultations about the true consequences of bankruptcy, debt agreements and other financial issues - we want you to get back on your feet and stay there with the best possible outcome for your future and all that you wish to attain. We want you to get your finances under control, maintain your great credit record and clear your debts once and for all.
It is worth noting that when it comes to debt in Australia you are not alone. Personal bankruptcies and insolvencies are at a record high in Australia, affecting three times as many Australian compared to twenty years ago. There is, however, no safety in numbers when it comes to declaring bankruptcy and insolvency. If you are skirting the line of bankruptcy, you need to take a good look at your financial options in order to avoid eventual bankruptcy.
Consequences to Declaring Bankruptcy in Australia
What you need to know before declaring bankruptcy or insolvency in Australia
Get Out of Debt Today treats declaring formal personal bankruptcy and insolvency in Australia as an absolute last resort. Declaring formal bankruptcy can have long lasting negative impacts on your finances, namely your credit rating and ability to borrow money in the future. In some cases, a black mark against your personal credit rating can severely restrict your financial earning capability and liberties for up to 7 years. Furthermore, declaring bankruptcy means that you will be listed on the publicly accessible National Personal Insolvency Index (NPII) - this is permanent. the NPII is an electronic register of all personal insolvency proceedings. This list can be accessed by any person and will include personal information about yourself including your name, D.O.B. and address.
One thing that many Australian people are unaware of is that in actual fact you will be listed on the Australian NPII for simply lodging an application for a debt agreement. Lodging a debt agreement is actually an act of declaring yourself bankrupt. This is an official act of bankruptcy in the eyes of Australian law even if your debt collectors do not accept it. Debt collectors, creditors and insolvency lawyers will be able to use your debt agreement application against you in court of law to force you into bankruptcy.
"...You will be listed on the National Personal Insolvency Index once you make a proposal for a debt agreement..."
During and after your bankruptcy in Australia, you have certain obligations and face certain restrictions. Any creditors who are wishing to obtain a copy of your credit report can request this information from a credit reporting agency. Once you are declared bankrupt secured creditors, who hold security over your property, will likely be entitled to seize the property and sell it. Moreover, your potential freedom is drastically inhibited. Once you have declared yourself bankrupt you will need to gain permission off your trustee when wanting to leave the country.
"...You will not be able to go overseas without obtaining the trustee's permission in advance..."
What You Must Do Once You Have Been Declared Bankrupt
The Lasting Effects of Being Bankrupt or Insolvent in Australia
Other obligations that you are required to abide to once having been declared personally bankrupt in Australia include:
You must inform the trustee immediately if you win any money or other prizes
You must immediately inform the trustee if you obtain any new assets (e.g. a house or car)
Once declared bankrupt you must inform the trustee immediately if you become the beneficiary of a deceased estate
If any of your creditors hold valid security over any property and they take action to recover it, you must assist
You must surrender your passport to the trustee if you are asked to do so
You will remain liable for debts incurred after the date of your bankruptcy
You will will not be able to act as a director or manager of a company without the courts permission
As you can see entering into bankruptcy can have long lasting negative effects on your life. That is why when we analyze your finances, we look for options that will have a better outcome of your lifestyle than bankruptcy. Bankruptcy will strip you of your property in order to pay off your debts, giving you limited time to find solutions to major problems including finding a new place to live and getting a cheaper car.
With informal debt agreements you have much more control over how and when you pay your creditors. An informal debt agreement also means that if your proposal is denied by your creditors that they are unable to force you into bankruptcy as with debt and insolvency agreements that are part of bankruptcy.
Entering into bankruptcy can leave your life in tatters, losing your home and possessions and leaving you with nothing. Avoid this outcome by talking to a debt counsellor today about taking a different rout. Bankruptcy needs to be properly thought about and planned, you should not ever enter bankruptcy on a whim as it can have effects on you that you may not even be aware of.
You Don't Have to Declare Bankruptcy or Enter into a Debt Agreement
NO Debt Agreements, NO Bankruptcy, NO Defaults
We differ from other services in Australia in that we do not use debt agreements. Debt agreements are simply another form of bankruptcy. A form of declaring personal bankruptcy, debt agreements will negatively affect your credit rating, limiting your personal freedom and opportunities for the future. However, rest at ease as you don’t need to have a credit default or black mark listed on your record to solve your debt problems.
"...I saw a number of professional advisors about my situation, but only Get Out of Debt Today gave me the full solution to both my company and personal debt issues. Now even my credit card debt has been eliminated and I have no black marks. Why would anyone go bankrupt?!..."
Former director of ChapterTwo and founder of Get Out of Debt Today, Chris Mushan, offers a fresh perspective on debt solutions by offering a range of personally tailored solutions to wipe off up to 100% of your debt without affecting your credit rating, entering into a debt agreement, or declaring bankruptcy.
We offer you various ways to save your credit rating and avoid the harsh realities of bankruptcy. Talk to our debt counsellors today about the potential of getting you debt fully wiped, getting your life back on track. When you choose Get Out Of Debt Today, we make sure you retain the ability to borrow in the future. So you can purchase a house, start up a business or even go on holiday without a worry or concern.
How to Wipe All Your Debts Without Effecting Your Credit Rating
Get in Contact with Get Out Of Debt Today
Ensure your future by making sure you can borrow money in the future without any black marks or defaults against your credit history. Talk to our team of experts today about how we can reduce your debt and take control of your finances once and for all.
Don’t let financial advisers take you down the long dark road to bankruptcy, leaving you to fend for yourself in the wilderness. Get proper advice on how to handle your finances, including whether bankruptcy is the right option for you, information on alternatives to bankruptcy and smart, flexible budgeting plans that can help you save to pay off your debts.
This includes using debt consolidation, a process whereby you put all your eggs into one basket, aka combine all of your debts in a lower interest loan to pay off your debts with less interest. A mortgage refinance can be used in this scenario, which can also lead to lower fees on your mortgage and increased benefits. It also allows Get Out Of Debt Today to negotiate with your creditors to get you the best deal possible. This can include a lower repayment amount across all your debts. Find out more about this method by call us on (02) 9011 7919 right now!
Start planning your future today, get free of debt with Get Out Of Debt Today. We negotiate with your creditors, counsel you on financial decisions and are completely transparent with any deals we broker with your creditors. We give you the ability to pay your debt off at a reduced rate and with reduced interest. We know what creditors are looking for and are able to negotiate with them to give you the best chance to pay off your debts.