ALTERNATIVES TO BANKRUPTCY
The consequences of Bankruptcy are serious
Although bankruptcy is a fair and legitimate way for a debtor to solve his or her debt problems, and is the correct way for creditors to take action against someone for unpaid debts, you should note that the consequences are serious. If you are declared bankrupt, a permanent record will be kept on the National Personal Insolvency Index (the NPII), an electronic register of all personal insolvencies. This Index may be accessed by any person and will include personal information about you, including your name, address and date of birth.
Explore Options Other Than Bankruptcy In Australia
Times of financial hardship are extremely stressful and worrying, and it’s very common for people experiencing them to feel like they’re entirely powerless and out of control of the situation.
There comes a time when it’s natural to conclude that the only option left at your disposal is declaring yourself bankrupt and, in a sense, ‘starting again’.
But it’s extremely important to remember that bankruptcy is far from being a clean slate – and there are in fact plenty of other (and often far preferable) options other than bankruptcy available at your disposal, even when it doesn’t feel that way at the time.
When you declare yourself bankrupt, you essentially solve your immediate debt problems by proclaiming to your creditor that you simply cannot – and will not be able to – pay back your debt. The problem is that the consequences of doing so are highly significant and can cause serious trouble for you further down the line.
For example, your name, address and date of birth will all be made publicly available on a permanent electronic register, so anyone you build future associations with will be able to easily find out about your history. Furthermore, your existing bank account will be immediately frozen, making day to day life inconvenient and often highly stressful.
Fortunately, bankruptcy really isn’t the only option, regardless of what you may have heard or how pessimistic you may be feeling about your current financial situation. With the help and guidance of a reputable, trusted financial expert, you’ll be able to explore and pursue other, far more agreeable courses of action.
Find an Alternative to Bankruptcy with TurnAround Pros
Here at TurnAround Pros, we’ve built an outstanding reputation in the business and debt advice industry for providing solid, practical advice and exceptional guidance to our wide range of clients.
We’ve worked with a huge number of different businesses and helped them overcome their financial difficulties and woes. When you pick up the phone to contact us, you can be confident that we’ve already helped turn around many companies in worse financial shape than yours in the past – without the need to resort to declaring bankruptcy.
Often, our experienced team of experts will be able to find a way to enter into a debt agreement with your creditors, whereby you come to a compromise with them and both parties agree that a lower amount than the original debt will be paid, either as a lump sum or in instalments.
But whatever the best course of action may be, you can rest assured that our team will help you find it. We’ll work closely with you to gain a thorough understanding of your situation, before coming up with the ideal alternative to bankruptcy that will relieve you of your current stress and panic.
So if you’re ready to start exploring the options other than bankruptcy that you have at your disposal, just get in touch with a member of our team today to arrange a free consultation with one of our staff.
TurnAround Pros are Queensland's best professionals for financial distress. If your business is becoming insolvent or you are facing bankruptcy, you are not alone. Work with debt advisors who will help you find alternatives to bankruptcy. Visit our website or call us on 1300 518 070 to learn more.- Read Less
Are there alternatives to Bankruptcy?
There are alternatives to bankruptcy, which Turnaround Professionals can help you arrange and negotiate. For example, you might enter into a Personal Insolvency Agreement, where you make an acceptable arrangement with your creditors without being declared bankrupt. The alternative that’s right for you will depend on your circumstances.
One alternative — Part IX (“Nine”) Debt Agreement
Part IX of the Bankruptcy Act allows you to enter into to an arrangement with your creditors to satisfy their debts, usually for payment of an amount that is less than that which you actually owe, without being made bankrupt. You get relief from the pressure of your debts and to avoid the restrictions and stigma of bankruptcy, and your creditors obtain a controlled distribution of your funds or assets, maintaining a source of income and likely receiving a higher dividend than they would be likely to in the event of your bankruptcy. See Section — Part IX Debt Agreement
Another alternative — Part X (“Ten”) Personal Insolvency Agreement
Part X of the Bankruptcy Act allows you to enter into to legally binding “Personal Insolvency Agreement” (PIA) between you and your creditors to satisfy their debts, whereby you might agree to pay your creditors in full or part, by instalments or a lump sum. Unlike a Part IX Debt Agreement, there are no debt, asset or income limits to be eligible to propose a PIA. In most cases, a PIA will provide a moratorium from your creditor’s claims in exchange for payments over time, usually amounting to a sum less than the full amount that you owe, and possibly including the sale of assets. See Section — Part X Debt Agreement
Can Turnaround Professionals help me reach a settlement with my creditors?
If you are experiencing financial stress to the extent that you are considering bankruptcy, we would remind you again that the consequences of bankruptcy are serious and long lasting, and that you should avoid entering into bankruptcy if at all possible. There are significant incentives for both you and your creditor/s to to arrive at a viable settlement arrangement that deals with the outstanding debt/s and is acceptable to all concerned. If required, TAP can assist you to structure and negotiate such a settlement; call us anytime on 1300 518 070.