Personal debt can feel daunting and difficult to resolve. Depending on the type, value and number of personal debts you have, there may be various solutions which are open to you. 

We always consider the following options with our clients: 

Negotiation and settlement of debts, including payment plans. 

We assist clients to negotiate, settle and/or arrange payment plans for a wide variety of debts, including tax debts, lease debts and mortgage shortfalls. 

Debt Agreement.

Debt agreements are administered under Part IX of the Bankruptcy Act and are a way to settle your debts for a lesser amount. 

With our assistance, you could put forward a proposal for a Debt Agreement to your creditors and your creditors would vote on whether to accept your proposal. Your Debt Agreement proposal would require a contribution of funds upfront over time. 

To be eligible for a Debt Agreement, your debts, property and income must not exceed certain indexed amounts. For further information regarding these indexed amounts, is here. 

Personal Insolvency Agreement.

Personal Insolvency Agreements are administered under Part X of the Bankruptcy Act and are a way to settle your debts for a lesser amount. 

This option also involves putting forward a proposal to your creditors, however it is a more involved process than a Debt Agreement. A Personal Insolvency Agreement requires the appointment of a Controlling Trustee to take control of your property temporarily and provide a report to and put forward your proposal to your creditors, which your creditors would then vote on. Your Personal Insolvency Agreement proposal may involve a contribution of funds upfront or overtime. 

This option is open to anyone with personal debt, regardless of the amount of your debt, property and income. 

Bankruptcy. 

Bankruptcy is a formal process whereby you declare that you are unable to pay your debts and a Bankruptcy Trustee is appointed to administer your bankrupt estate pursuant to the Bankruptcy Act. For further information regarding the effects and consequences of bankruptcy, please see our articles on what happens to your assets in bankruptcy, what are the effects of bankruptcy and what happens to your income.  

Further Information

If you wish to discuss this article, or your circumstances, please don’t hesitate to contact Pearce & Heers Brisbane or Gold Coast office and our experienced staff will be able to assist you.