When it comes to money trouble, every situation is different.
The only way to properly assess your circumstances is to analyse your finances in detail and explore your options.
MyBudget offers a free, no-obligation debt consultation to members of the public. We will closely examine your debts, bills and other expenses, and carefully take into account your concerns, goals and priorities.
This consultation is free and you are under no obligation sign up as a MyBudget client. By the end of the consultation, you will have a comprehensive, customised budget plan that demonstrates how we may help you to be able to afford to repay your debts through negotiation and good money management in the form of a workable budget.
We specialise in helping people recover from debt stress. We’re here to answer all of your questions and help you design a customised strategy that achieves your specific goals. In a relaxed and confidential setting, one of our budgeting experts will show you how a debt agreement could affect your financial outlook. However, if you do decide that a formal debt agreement is the right solution for you, MyBudget can handle everything and take care of the paperwork. Some functions and staff of MyBudget also trade under the company name MyDebtSolution Pty Ltd, which is a registered debt agreement administrator with the Australian Financial Security Authority (AFSA), and which assists MyBudget clients who are applying for formal debt agreements.
How does a formal debt agreement differ from bankruptcy?
A formal debt agreement, also known as a “Part 9 Debt Agreement”, differs from bankruptcy because it allows you to offer a reduced settlement to your creditors in the form of a repayment schedule.
A formal debt agreement would allow you to potentially keep your higher valued assets, such as your house. The consequences of a formal debt agreement, however, are not dissimilar to bankruptcy. In fact, simply applying for a Part 9 Debt Agreement is considered an act of insolvency. Like bankruptcy, a formal debt agreement will appear on your credit file for five years and your name will be listed on the National Personal Insolvency Index for at least five years. Your access to credible sources of credit will be severely limited.
Still, despite the consequences, there are some circumstances where insolvency makes sense. We would be pleased to help you understand the benefits, disadvantages and ramifications of bankruptcy and debt agreements at a free consultation.