Sometimes general spending can get out of hand. Circumstances can cause you to suffer financial hardship as a result of occurrences outside your control including matters such as death, fraud, loss of employment, separation and numerous other events which occur in day to day life.
The Bankruptcy Act 1966 (as amended) (“the Act”) gives a couple of opportunities for a person who has suffered financial hardship and has debts which exceed their assets to enter into an arrangement with creditors where creditors can be offered a sum of money which the debtor can afford. A debt agreement under the Act can assist you in unmanageable debt and as an alternative to bankruptcy allowing you to maintain employment, avoid the stigma of bankruptcy, avoid interruptions to employment caused by bankruptcy, significant effect on credit rating and other matters.
The Act provides two (2) forms of debt agreements, the first arrangement is an arrangement under part (ix) and the second being a debt agreement which is administered by a debt agreement administrator and the second a personal insolvency agreement under part (x) of the Act. Both procedures have certain requirements and in particular the debt agreement has a maximum level of income and maximum level of debt and asset that must be applicable for a debt agreement to apply. In this regard in both matters, it is necessary that you have not been a bankruptcy in the last 10 years and are insolvent. Currently as at 20 March 2014, the maximum unsecured debt level is $105,086.86 with a maximum income level of $78,815.10. These amounts are indexed and are updated twice yearly.
Joseph O’Hare of our office is a controlling trustee registered with the Australian Financial Security Authority to undertake personal insolvency agreements and meetings arranged pursuant to part (x) of the Act.
A personal insolvency agreement can fix the level of debt that you are responsible for and fix a repayment schedule that you are able to achieve (subject to the agreement of creditors). The further benefit of a personal insolvency agreement is that it does impact your ability to maintain running a business or being self-employed.
Should you have any financial difficulty and require assistance, please contact Joseph O’Hare of our office who is happy to assist you in respect of any requirements under the Act or debt agreements that may be required.
O’Hare Law Solicitors
Suite 6, 82 Buckland Road, Nundah Q 4012
PO Box 491 Clayfield Q 4011
Telephone: (07) 3266 8999
Facsimile: (07) 3266 3633