Sometimes, declaring bankruptcy is the best and only option. It’s not usually the case, but if it is then we can make this process as painless as possible.
Looking for Bankruptcy Advice?
While most people are diligent about repaying debts, there are times when it becomes virtually impossible to take care of those obligations.
When your personal finances are out of control, it’s sometimes necessary to seek Bankruptcy Advice rather than spiraling further into debt. However, before considering such drastic action, financial experts recommend you carefully consider all options first, as alongside the positives there are negative consequences involved when filing bankruptcy.
Before Filing, Try Negotiating
Creditors understand that circumstances beyond a debtor’s control can significantly impact their ability to repay a debt as previously promised.
In many cases, creditors may negotiate repayment plans to circumvent the need to take more drastic steps. However, every situation is different, and not all creditors are amenable to renegotiations.
If creditors are less than cooperative, it pays to discuss the specific situation with a financial advisor well versed in Australia’s bankruptcy regulations, this is one of the areas we are able to assist in and often our first port of call in dealing with someone’s Bankruptcy situation.
Not all debt recovery strategies require such drastic measures, and we are able to help debtors determine what resolution best fits their needs.
When All Else Fails, Seek Protection
If there does not appear to be any possible resolution available other than bankruptcy, you may lodge what is known as a debtor’s petition to become bankrupt. However, it’s recommended you discuss the situation with ourselves before taking this step to best protect any assets you may have. It’s important to understand that a creditor may also file an action to force you into bankruptcy if your debt to that creditor is $5000 or more.
What Happens After the Petition is Filed?
First, creditors are prohibited from continuing collection actions once a petition is filed. That means you will no longer be inundated with notices by post or phone demanding payment. However, many of your assets are at risk to resolve the debts owed. On the other hand, specific properties are generally regarded as protected and can be retained. Those properties include:
- the majority of your personal and household items
- vehicles used up to a set maximum
- any tools of trade required to earn a living
- several types of compensation including life insurance and personal injury compensation.
Our expert team can review which assets are protected to help you decide if filing is in your best interests. Getting bankruptcy advice before making any decisions is very strongly recommended.
Regardless of the reasons seeking financial help, ask yourself what is bankruptcy and how can filing help me? With the help of our qualified team, you can regain control over your finances and start on the path to a better life.
If you are in debt, and struggling to meet payments or manage your financial commitments, then a Debt Agreement might be the right solution for you.
As you can see, there is a range of choices but only one will be right for you.
The team at Capital Debt Solutions will find the best solution and work with you and your
creditors to get you back on track and rebuild your financial future.