1800 463 328 help@iodebt.com.au

Personal Debt Solutions

If you are unable to pay your debts, you are not alone. Our personal debt solutions team are here to take the first step with you.

We can help.

On average, over 10,000 Australians are faced with the stresses of mounting and unmanageable debts per year. If you are unable to pay your debts, you are not alone. Our personal debt solutions team work with many people that are in the same situation and are in need of an immediate resolution.  

We know how difficult it is to take the first step. Our free confidential consultation will help you understand your options and free you from debt.

Debt Agreement

When someone is facing mounting debts, one immediate assumption is that bankruptcy is the only option. However this is not always the case. In fact, Insolvency Options considers this to be the last resort. 

A Debt Agreement is a preferable option over bankruptcy, for all parties involved. A Debt Agreement is a legally binding agreement between you and your creditors to settle your debts. The Insolvency Options team is qualified to act on your behalf and repay a negotiated percentage of the debt owed to creditors. This percentage is dependent on what you are able to afford over a fixed period of time. Once the payments and period of time has ended, you are released from your financial obligations to those creditors. 

There are eligibility requirements in order to enter into a Debt Agreement. The eligibility is determined on the amount of combined debt owed, your assets and your income. If you have been bankrupt, had a previous debt agreement or a personal insolvency agreement within the last 10 years, you will be ineligible. 

Call our friendly team on 1800 463 328 to see if a Debt Agreement is right for your situation. 

What are the consequences of a Debt Agreement?

Most types of insolvency come with consequences. It is important to speak to our team about the benefits and consequences of each option. By entering into a Debt Agreement, it may affect your credit score (with credit bureaus) and your ability to apply for credit in the future. A record of the Debt Agreement will also be recorded and listed on the National Personal Insolvency Index (NPII). This NPII is a public and permanent record of all personal insolvency proceedings in Australia.

How long does a Debt Agreement last for?

A Debt Agreement can exist as a payment arrangement between you and your creditors for up to 3 years. This can be extended if you have a substantial asset such as owning your own home. A Debt Agreement may also be terminated early should the debt obligations be fulfilled earlier than 3 years. 

What is a Registered Debt Agreement Administrator?

A Debt Agreement Administrator is registered with the Australian Financial Security Authority (AFSA). They are a qualified professional that administers the entire process of the Debt Agreement and is there to act on your behalf to your creditors. Insolvency Options have a Registered Debt Agreement Administrator with many years of experience in all types of insolvencies.

Can I do a Debt Agreement myself?

No, as it is a formal process, you need a Registered Debt Agreement Administrator such as Insolvency Options to administer the Debt Agreement. It is to ensure that the formal agreement is legal and adhered to so all parties are satisfied with the obligations being met within the agreement.

Other Personal Debt Solutions

We recommend our free consultation service to see if you are eligible for a Debt Agreement. If you are ineligible, there are other options available. Our team will discuss these with you during your consultation. 

Other options available in dealing with personal debts are Personal Insolvency Agreements and Bankruptcy. Both are solutions that provide an individual relief to unmanageable debts. 

Personal Insolvency Agreement

Alternatively to a Debt Agreement, a Personal Insolvency Agreement is also a legally binding agreement between you and your creditors. It is an alternative option to bankruptcy. While both options are Agreements to satisfy debts, there are several differences. 

A Personal Insolvency Agreement requires a Trustee to administer the entire process. Our team will refer you to a qualified Trustee that has helped individuals with financial stress through Personal Insolvency Agreements. 

When engaged in a Personal Insolvency Agreement, a Trustee will assess your situation and make a formal offer to creditors on your behalf. The offer will either pay all or part of your debts in order to relieve you of your financial obligations to these creditors. There are no eligibility requirements to enter into a Personal Insolvency Agreement. The Trustee will negotiate on your behalf with your creditors to determine the length of the agreement and the payment required to settle the debts. A Personal Insolvency Agreement typically allows you to retain the majority of your assets such as your house and car. 

If you feel a Personal Insolvency Agreement may be suitable for you, call our team on 1800 463 328 and we will refer you to an expert and qualified Trustee.

When does a Personal Insolvency Agreement end?

Pending on your circumstances, the amount of debts you owe and what is negotiated and discussed between you and your Trustee (the individual that administers the Agreement).

Can I do a Personal Insolvency Agreement myself without a Trustee?

No. A Personal Insolvency Agreement is a formal act of insolvency and legally requires a Trustee to administer the process.

What is a Trustee or Registered Trustee?

A Trustee is an individual that administers a Personal Insolvency Agreement or Bankruptcy. They are qualified and registered with the Australian Financial Security Authority (AFSA).

Are there consequences of entering a Personal Insolvency Agreement?

With all types of insolvency options, it is important that you consult a professional to understand the consequences. By entering into a Personal Insolvency Agreement, there may be impacts to your employment or business, your credit file and your name will be listed permanently on the National Personal Insolvency Index (NPII). More information on consequences of Personal Insolvency Agreements can be found on the Australian Financial Security Authority (AFSA).

Bankruptcy

Bankruptcy can often seem like an intimidating and daunting option. Our team understands that and sometimes this may be the only option for total debt relief. It is important to know all your options before considering bankruptcy. Our experienced team will discuss all your options to relieve you of your debts. 

Bankruptcy allows a person to be freed from their debts and make a fresh start. The bankruptcy period lasts for three years and one day. It is a formal insolvency process that must be managed by a Trustee. A qualified Bankruptcy Trustee, will immediately take the pressure off you by liaising with your creditors on your behalf. This can come as much needed comfort when you are dealing with creditors chasing payments.

Once you are declared bankrupt, the Trustee will manage your financial affairs, income and assets. This will include selling assets and using these proceeds to pay your creditors. Assets may include cash at bank, vehicles and property. There are exemptions to what assets will be sold as part of the bankruptcy process. These typically include superannuation, vehicles up to a certain value and tools that help you earn income.    

Whilst bankruptcy does allow you to be released from your debts, there are consequences. Bankruptcy may affect your business, your employment and your income. For these reasons, it is important to speak to our team to discuss all your options.

Book a free confidential consultation today on 1800 463 328 to discuss if Bankruptcy is suitable for your circumstances. If Bankruptcy is the most suitable option, our team will refer you to a qualified Trustee.  

Business Debt Solutions

Small Business Restructuring Plan

If your business is struggling to pay its debts, then the Small Business Restructuring Plan may be right for you.

Work with our skilled team to get your business back on track.

Voluntary Administration / Deed of Company Arrangement

This Voluntary Administration option is for businesses that need to resolve their debts in order to continue trading. It provides immediate debt relief after an Administrator is appointed.

Creditors' Voluntary Liquidation

Dealing with debt is stressful and sometimes dissolving a business is the most appropriate course of action.

A Creditors’ Voluntary Liquidation is designed to wind up a business after its debts have been resolved.

Businesses in Industry

Court Liquidation

A Court Liquidation occurs when a Liquidator is appointed by the Court to wind up (liquidate) a company. A Court Liquidation is commonly instigated by a creditor that has made an application to the Court to liquidate the company due to unpaid debt.

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Our Free Consulation Service

We know taking the first step to call for help is not easy.

Our initial step in your consultation is to listen to best try and understand your situation. Your confidentiality is just as important to us as it is to you.

Our consultation also covers what your options are; the benefits, considerations, costs and expected outcomes of each option. Anything that you have disclosed to us during this consultation is kept completely confidential.

Find out what you should expect from our free consultation service. Speak to our personal debt solutions team today.

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