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Common (and Legal) ways to avoid Bankruptcy Whilst this site is about voluntary bankruptcy it is important to consider other options that a person in debt can use to alleviate their situation. Some of these may be better options than bankruptcy depending upon your situation. In many instances a Part 9 Debt Agreement is a viable alternative to bankruptcy for anybody who wants to pay something back rather than just go straight into bankruptcy. * THE GRANDMA OFFER. This is where a lump sum offer is made to pay out all of your debts at a reduced amount. EXAMPLE: You owe $30,000 on 4 different credit cards. For an easy example we will say you owe each one exactly $7,500.00. Each creditor is offered $4,000.00 to cancel your debt.They all agree. This means that for $16,000.00 you have paid off $30,000.00 of debt. Its a good solution if you can get the $16,000,00 from someone and the creditors agree. Why is it called the GRANDMA OFFER? Sometimes it's a person's grandma who doesn't want them to become bankrupt so the Grandma helps out. However you can't expect your granny or anyone else to give you the money just because you want it. *NEGOTIATED ARRANGEMENT. This is where arrangements (basically promises from you to your creditor's) are agreed upon so that the creditor's leave you alone and don't commence legal action. This is a good way of dealing with the problem as long as you can keep your promises and the creditor/s don't change their mind. They can at anytime ask you to start paying more. With NEGOTIATED ARRANGEMENTS you have very little Legal Protection. This can cause you problems. * PART 9 DEBT AGREEMENTS. This is where you get protection under the Bankruptcy Act without having to go bankrupt. For more information on Debt Agreements click to go this informative site www.fixdebt.com.au Generally what happens is an offer is made to all of your creditors outlining what you can afford to pay each week. You might pay this amount for 3 to 5 years and then anything else you still owe including interest is written off and you are now debt free without having to go bankrupt. Sometimes Debt Agreements are called "Interest Free Debt Consolidation". You are protected because your creditors are not allowed to take action against you, your property or your wages. Call now. Lines open 7 Days, 8am - 12pm NSW Callers 02 9623 7860 QLD Callers 07 3613 9648 VIC Callers 03 9993 0116 Friendly help and service guaranteed all over Australia. We have dedicated phone numbers for Victoria, Queensland & New South Wales. |
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