Filing for bankruptcy can create a high level of financial and emotional stress for individuals who don’t want the negative (and sometimes permanent) repercussions involved. At the Debt Agreement Advice Centre (DAAC), we are committed to helping you solve your debt issues in the most beneficial way for you. That’s why we offer viable and legal alternatives to avoid bankruptcy.
Bankruptcy is a potential solution for those who can simply no longer afford to repay their debts. Filing for bankruptcy should be considered a last resort, though, due to the undesirable consequences associated with it and its long-lasting effects.
Some of the main reasons to avoid bankruptcy:
- Your name will appear permanently on the National Personal Insolvency Index (NPII)
- Your ability to obtain future credit will be affected
- Your assets may be sold
- You cannot act as a company director whilst bankrupt
- Overseas travel restrictions
The many negative effects associated with bankruptcy can be overwhelming in some cases, though, they can be avoided by way of legal alternatives. It is important to know the alternative options available to you and avoid bankruptcy if you can.
One such alternative option is a Debt Agreement. This is a formal repayment plan whereby you offer to repay as much as you can comfortably afford to (usually over a period of 3-5 years). For it to be accepted, you need the majority of your creditors to formally agree to your proposal.
With a Debt Agreement, you can avoid some of the consequences and restrictions associated with bankruptcy. For example:
- You will not be restricted from acting as a company director
- You will be able to travel overseas without applying for permission first
- Your assets will not be sold to pay back your unsecured debts
So don’t get bogged down by thinking bankruptcy is your only option.
At DAAC, we can provide professional advice on the alternatives available to you to avoid bankruptcy. We are also fully qualified and licensed to become your Debt Agreement Administrator if you believe a Debt Agreement is the best solution for you.
To get started and explore your options, give our friendly and professional debt consultants a call today on 1800 653 485.
