With the COVID-19 (Coronavirus) impacting the economy, businesses and employment, you may find yourself at risk of personal bankruptcy. As bankruptcy can have serious consequences, it is important for you to understand your alternatives available during COVID-19.

 

Debt Agreements and Personal Insolvency Agreements

Debt Agreements and Personal Insolvency Agreements are formal agreements that you enter into with your creditors. To settle your debts you will propose to pay an agreed sum (usually over a 3 to 5 year period). If you enter into a Debt Agreement you are required to enlist the assistance of a Debt Agreement Administrator, and a Registered Trustee when proposing a Personal Insolvency Agreement. In most cases you will be able to settle your debts for less than what is owed with the remaining balance legally written off. If you would like to learn more about these two alternatives to bankruptcy please click here.

 

Changes to bankruptcy legislation

Please note that the Federal Government has made temporary changes to bankruptcy laws, including increasing the bankruptcy debt threshold from $5,000 to $20,000 and response to debt notices from 21 days to 6 months. If you would like to learn more about these changes please click here.

 

If you are experiencing financial distress, please contact Australian Bankruptcy Services to speak to one of our friendly and professional consultants today. We have both a Debt Agreement Administrator and a Registered Trustee onsite so we are able to offer help with bankruptcy, Debt Agreements and Personal Insolvency Agreements. Our lines are open 24 hours a day, so please call when it is convenient to you on 1800 462 767.