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FAQs 2017-03-01T14:11:33+00:00

Debt Negotiation can potentially reduce your unsecured debts if your creditors are willing to accept a lower lump sum payment amount that what is actually owed as a full and final settlement of the debt. For example, if you owe $15,000.00 to a creditor, after negotiation they may accept a reduced lump sum payment of $10,000.00 which would equate to a saving of $5,000.00 on the final payment to your creditor.

This largely depends on your circumstances and is subject to a number of variables such as the type, age and current state of the debt, and what type of debt it is. In many cases we are able to reduce this figure by savings of up to 40% or even have a debt written off.

Debt negotiation will not have any adverse effect on your credit score. However any account that may be listed as an “unpaid” default or judgement on your credit file before you engage our services will be updated as “paid” or “settled” as required by law by your creditor once our negotiation service is completed and the debt has been paid.

Generally we are unable to negotiate on secured debts like a home loan or car loan, as the creditor  has an interest in an asset  so is therefore more likely  to take back the asset than accept payment for less than the debt is worth. However in the case where they feel the security they hold is not sufficient to retire the debt, negotiation may be possible on a case by case basis.

While we are involved in mediating between you and the creditors, we will ask for your creditors to direct all phone calls and letters to our office and request a stay of enforcement on any legal proceedings. We will keep you updated every step of the way to ensure that you are aware of what is happening at all times

Contact us immediately so that we can discuss how we may be able to help you. If your loan or credit facility is in arrears the lender or creditor will usually be highly motivated to bring a speedy resolution to the matter. It is our experience that keeping in touch with your creditors to work together through your period of difficulty is best practice. We can do this on your behalf to help you so contact us today.

Contact us immediately so that we can discuss how we may be able to help you. If we can we will request a stay on this legal action for you and then attempt to facilitate a good settlement offer. It may also be advisable to seek Independent legal and financial advice.

The Australian Securities & Investments Commission (ASIC) provides information on how to obtain free legal advice for each state on the link below:

https://www.moneysmart.gov.au/managing-your-money/managing-debts/free-legal-advice

We are successful in debt negotiations on most occasions and we hold a high level of knowledge on how to achieve a successful negotiation.

We make certain that when we assist a client we always act in the best interests of our clients objectives and requirements in lowering their debt position.

We will not waste any of your time if we cannot assist and we will let you know as soon as possible. If we are unsuccessful in negotiating you will not be charged any fees for the negotiation service as we are only paid for successful negotiations.

We specialise in helping people with defaults on their credit file obtain a loan to consolidate their debts and negotiate with their creditors. In fact helping people get back on track is the foundation of our business.

If you have sufficient income to service the new mortgage then this could be the most appropriate action, especially if your debt situation hasn’t gotten completely out of control. However, unless you are ready to make a commitment to avoid further debt, budgeting to change your spending habits and making extra repayments on your new mortgage, a debt consolidation mortgage is likely to get you further into debt.

Our fully qualified team of Finance professionals will tailor credit advice best suited to your personal financial situation.

Send your enquiry today.

The ramifications of bankruptcy are permanent and can affect you for the rest of your life.

Get help before you apply.

If you don’t think you’ll be able to repay your debts you can apply for bankruptcy. Only do this if you have explored all other options, and seek legal advice or financial counselling before you go ahead.

Bankruptcy is a process where you are legally declared unable to meet your debts. When you apply for bankruptcy you will be released from most of the debts you owe and debt collectors will stop contacting you.

You need to consider carefully whether declaring bankruptcy is the right step for you. Being bankrupt can permanently affect whether you can get credit in the future.

It can also permanently affect your ability to obtain work in certain industries.

Once you are declared bankrupt, you are classified as bankrupt for 3 years and a trustee is appointed to look after your affairs.

Your bankruptcy will be listed on your credit report for 2 years from the date your bankruptcy ends, or up to 5 years from the date you became bankrupt, or longer in some circumstances. It will also appear on a publicly-accessible register called the National Personal Insolvency Index (NPII) where it will remain indefinitely.

You cannot be a director of a company without leave of the court and you may not be able to work in particular trades and professions. See AFSA’s website for more information on employment restrictions.

The Australian Financial Security Authority or AFSA is the government agency responsible for the oversight of bankruptcy and insolvency in Australia please click on the following link for more information published on their website:

https://www.afsa.gov.au/insolvency

Debt agreements are available to low income earners who cannot pay everything they owe, but want to avoid going bankrupt. Debt agreements have serious long term consequences that may affect your career or your ability to obtain credit in the future.

You should only consider a debt agreement if you have explored all other options. If you are thinking about getting a debt agreement make sure you understand exactly what you are agreeing to and the effect it can have on your ability to obtain credit in the future.

A debt agreement is a binding agreement between you and your creditors and falls under Part IX of the Bankruptcy Act 1966.

Under a Part IX debt agreement, your creditors agree to accept an amount of money that you can afford to pay, over a set period of time, to settle your debts.

Once you have paid this money your creditors cannot recover the rest of the money you owe.

A debt agreement is not a consolidation loan or an informal arrangement with your creditors.

How a debt agreement works

If you meet the eligibility criteria, a debt agreement administrator will help you prepare a debt agreement proposal, based on what you can afford to repay. The eligibility criteria are on the Australian Financial Security Authority’s website.

The proposal will be sent to each of your creditors and they can vote to accept or reject your proposal. If the majority of creditors accept your proposal then the debt agreement will start and all creditors will have to accept the terms of the agreement.

All creditors will receive the same proportion of the amount you owe. For example, if you propose to repay 90% of all your outstanding debts over a 5-year period, then all creditors will get 90% of what you owe them.

Important

Proposing a debt agreement is a serious step. It is an act of bankruptcy and if the debt agreement is not accepted by your creditors they can use the proposal to apply to the court to make you bankrupt.

The Australian Financial Security Authority or AFSA is the government agency responsible for the oversight of bankruptcy and insolvency in Australia please click on the following link for more information published on their website:

https://www.afsa.gov.au/insolvency/i-cant-pay-my-debts/what-debt-agreement

 

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