Alternatives to Bankruptcy
The bankruptcy process is governed by the Bankruptcy Act 1966 and is administered by the Australian Financial Security Authority (AFSA). Bankruptcy is usually a last resort option for most individuals who cannot repay their debts. However, there are alternative options available that may provide a more favourable outcome. In Australia, some of the alternatives to Bankruptcy are as follows, and at Bankruptcy Advisory Centre, we can help you to consider all the options available, help you make informed decisions and plan your way to financial freedom.
What Are The Alternatives to Bankruptcy?
Debt Consolidation involves combining multiple debts into a single loan with a lower interest rate and more manageable monthly payments. This option is suitable for individuals with numerous unsecured debts, such as credit card debts and personal loans.
A Debt Agreement: This is a legally binding agreement between the individual and their creditors to repay a portion of the debt over an agreed period. This option is suitable for individuals who are unable to repay their debts in full but can afford to repay a portion of the debt over time.
A Personal Insolvency Agreement: This is a similar option to a debt agreement, but it is only available to individuals with more significant financial problems who cannot repay their debts in full.
Informal Debt Management involves negotiating with creditors to repay the debt on more favourable terms, such as a reduced monthly payment or over a more extended repayment period. This option is suitable for individuals with a small amount of debt and a good credit history.
Need more information about an alternative to bankruptcy?
“The process of Bankruptcy in Australia involves the realisation of assets, which involves selling a person’s assets to repay their creditors. It’s important to understand this process’s consequences, and you will be on the national personal insolvency index.
It is important to seek professional advice before deciding to declare Bankruptcy.
The best alternatives to bankruptcy include debt consolidation, debt agreement, personal insolvency agreement, and informal debt management, and we can give you free no, obligation advice on all these options so that you can make an informed decision about debt agreement vs bankruptcy and help you to consider all the options available.”
Andrew Bell Bankruptcy Advisor
If you seek advice on Bankruptcy Law Changes and procedural guidance in Perth, Brisbane, Melbourne, Sydney or anywhere around Australia. We can help you make informed choices before selecting your best options. Get a complimentary first consultation by calling 1300 887 210. We can help you with questions about bankruptcy laws in Australia.
Our fees start from $850, offering you exceptional value for our professional services. Contact us now to speak with one of our experienced bankruptcy specialists, and let us help you get back on track with a fresh start.