Sinking in a tonne of debt turns the joys of life into a heavy burden.
A lot of people who approach MyBudget are so deep in debt that they can see no way out except insolvency or personal bankruptcy. They’re usually so stressed and worried that they can’t imagine any other options.
All they know is they want the worry to end. They want the calls and letters from debt collectors to stop. They want to sleep at night. They want to start enjoying life again.
There can be significant consequences that should be taken into account when filing for insolvency or personal bankruptcy. This could include five years of limited or costly access to sources of credit. It is a serious decision and should only be considered with appropriate counsel.
At MyBudget, we recognise that bankruptcy and formal debt agreements do have their place for some people. However, we also understand the implications of going bankrupt.
Personal insolvency is a legal term that describes your financial position. If you’re unable to pay debts when they’re due, you’re insolvent.
Arranging a debt agreement or declaring bankruptcy is an act of insolvency.
A formal debt agreement is a legally binding arrangement. It lets you pay your creditors a sum you can afford.
A debt agreement is also referred to as a Part 9 or Part IX debt agreement. It falls under Bankruptcy Act 1966.
To declare yourself bankrupt is to declare to your creditors that you are no longer able to afford the repayments that you owe them.
Successfully filing for bankruptcy releases you from most of your debts.
It takes a lot to feel like a formal debt agreement or declaration of bankruptcy is your only way out, and it’s not always overspending or poor money management.
We understand that in life, we can get unlucky. Sometimes, life’s circumstances are out of your control.
There’s no need to feel embarrassed or ashamed.
The consequences of debt agreements and bankruptcy
Formal Debt Agreement
At MyBudget, we understand each and every person’s financial situation is unique. This is why our goal is to help you create a financial solution that works just for you.
All you need to do is meet with us. A consultation session with us is completely free of charge.
In our session, we’ll thoroughly analyse:
Your current debts
Through this analysis, we’ll help you develop an accurate understanding of your financial situation.
From there, we’ll help you explore your options and work with you to develop an ongoing financial plan to get you back on track.
We can help you develop a strategy that combines repayment negotiation with a budget plan to pay off your debts.
As you already know, arranging debt agreements and filing for bankruptcy have terrible consequences. We want to help you find the right alternatives.
Depending on your financial situation, arranging a debt agreement or even filing for bankruptcy may be unavoidable.
If we’ve gone through a complete analysis of your financials and come to this conclusion, we can help administer your insolvency.
In fact, we can handle everything, if you choose.
You'll be able to:
You can relax. We'll administer your insolvency and handle all the paperwork, so you don’t have to.
Stressing less means you can sleep more peacefully at night. We'll solve this together.
Escape debt collectors
Insolvency solutions should see the end of constant calls and door-knocks from money chasers.
Look to a new beginning
Bankruptcy isn’t the end. The road ahead may be tough, but it will be a new beginning.
In Australia, bankruptcy lasts for three years.
The bankruptcy can be extended for five years more if your appointed trustee lodges an objection to your discharge.
Remember, bankruptcy has high-impact, negative consequences and should be your last resort.
In Australia, personal insolvency is overseen by the federal government through the Australian Financial Security Authority (AFSA).
The AFSA registers all debt agreements and bankruptcies.
A Part 9 or Part IX debt agreement is the same as a formal debt agreement.
Debt agreements are different to bankruptcy because they let you offer a reduced settlement to your creditors in the form of a repayment schedule.
A formal debt agreement may let you keep higher value assets, like your house.