Category Archives: Financial Services

Insolvency agreements are much easier to monitor

Insolvency and bankruptcy are the two remedies available for those who are bogged by debts. According to Fiona Cope, Chief Officer, Citizens Advice Bureau, North Somerset, since the recent past, there has been a reasonable increase in the number of people applying for insolvency. In fact, Fiona Cope points out that during 2014, in North Somerset alone, about 479 people applied for insolvency. This trend is noticed in various other countries also such as Australia, India and various other European countries. Such people prefer to file personal insolvency agreement Australia banks help to undertake so that they can they can buy peace of mind.

personal insolvency agreement australia

Insolvency a temporary phase:

As you know, insolvency is a temporary phase of your inability to repay the debts. For example, you are unable to pay the outstanding loans because you have not got the money that is due to you. In such cases, you would enter into personal insolvency agreement Australia banks undertake, and you would be allowed that extra time to repay the amount.  You can enter into an agreement provided your debts are over and above certain limits as fixed by the law of the land.

Bankruptcy:

Interestingly, the figure quoted by Fiona Cope only represents people who have applied for insolvency. You may be surprised that in addition to those who have applied for insolvency, there are many more people who are left with no assets. Such people would not be eligible for a personal insolvency agreements. In the alternative, such people may have to apply for bankruptcy. Bankruptcy is the last remedy available for those who are debt ridden. By this process, they may get rid of most of their debts.

Involves paperwork:

Insolvency can affect any individual, whether rich or poor as well as companies and corporate. If you are affected by insolvency, then you may avail the services of any registered or an official trustee. They will guide you in the entire process of insolvency proceedings. As you know, the process of entering into personal insolvency agreement Australia trustees help with is quite complicated, and it involves a reasonable amount of paperwork.  But, the trustees will ensure that the proceedings are hassle free and also completed in the earliest possible time. However, if you are a company or corporate, then you will be guided by the Corporations Act 2001 of Australia. Check them out at https://www.debtmediators.com.au/personal-debt-solutions/personal-insolvency-agreements/

Advantages to debtors:

If you are an individual and when you apply for insolvency, the trustees normally suggest you to enter into the agreement under Part X of Bankruptcy Act. According to the registered and official trustees, personal insolvency agreement part x offers various benefits to the person applying for insolvency. In the first place, by applying for insolvency under Part X, you can avoid going bankrupt. Further, until the disposal of your application, the creditors are prevented from taking any other steps to recover the loan. It also allows you to clear the debts in an ordinary manner.

Advantages to the creditors:

The personal insolvency agreement process is also found to be beneficial to the creditors.  The creditor will get back the amount due much sooner than if the debtor is declared bankrupt. Further, the creditor can get a higher amount than when the person was declared bankrupt. The cost administering the trustee is much lower as compared to the proceedings for administering bankruptcy.

4 Steps to help you Declare for Bankruptcy in Australia

It is not easy to declare yourself for bankruptcy and for that matter, it is not something that needs to be rushed. Although declaring yourself bankrupt could get rid of all your unsecured debt, there are certain consequences you need to know before you make any hasty decisions. Before you file for bankruptcy in Australia, it is crucial to weigh your options carefully and seek expert advice.

Read on the four paramount steps you need to take before you file for bankruptcy in Australia.

Carefully assess your options

Before you file for bankruptcy in Australia, you need to consider all the options in every angle. You should not take your decisions for granted and assume filing for bankruptcy is a simple matter. As a matter of fact, filing for bankruptcy should be your last resort. The first thing to do is to talk with your creditors on how you can make payments or formally via a personal insolvency agreement or debt agreement. If truly you can’t manage to pay your debt and you don’t own any assets which will be disposed in bankruptcy, then the best option for you is voluntary bankruptcy.

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Are you eligible?

It is also important to find out the criteria for bankruptcy. You first of all need to be insolvent and you must be living in Australia when filing for bankruptcy. The AFSA – a government agency, will first assess your applications to determine if you’re insolvent. The first thing that the agency will do is to check if you are in a position to clear your debts in full within the stipulated time. Another thing, the agency will review your address to confirm if it is legit. For your application to be approved, your address should be from Australia. If you are an Australian national but you are living abroad, you will have to return to Australia to apply for bankruptcy.

Get expert advice

To get bankruptcy help, you need to seek for advice from a registered bankruptcy trustee. A bankruptcy expert knows the dos and don’ts of filing for bankruptcy in Australia. As mentioned earlier, filing for bankruptcy is a complex process and hence you need to talk to a qualified and experienced expert. When talking to the bankruptcy  expert trusted, ensure that you disclose your situation fully. If you don’t disclose all the relevant information or if you hide your assets, your bankruptcy may be prolonged up to eight years instead of the usual 3 years. If you give full details about your finances and assets, an expert will able to find the best solution for your situation.Read More at Debt Mediators

Complete and lodge your bankruptcy forms

Lastly, make sure that you complete and lodge your bankruptcy forms with the AFSA. To file for bankruptcy in Australia, you need to fill the statement of affairs, debtor’s petition and prescribed details. Take as much time as you need, to fill out these forms to ensure everything is correct.

Last but not least, if you are looking for bankruptcy help Australia market has for you, you can get help from Debt Mediators Australia. Debt Mediators Australia will help you file for bankruptcy in Australia and ensure your debts are cancelled. For more information on how to get help, go to https://www.debtmediators.com.au/bankruptcy/