I Owe Money

Seeking professional advice is critical if you find yourself in financial distress and owing money you feel you cannot repay. There are solutions available that you may not be aware of and a professional can guide you through these options.

If you do find yourself owing money you can’t repay there are both formal and informal options.

 

Formal options

Under certain circumstances, you may have to declare yourself bankrupt. Under the Bankruptcy Act 1966 there are four options:

  • Bankruptcy. If you declare yourself bankrupt, your period of bankruptcy can last for a minimum of three years. After this time you are released from most of your debts
  • Declaration of intention to present a debtor’s petition. This option provides temporary relief from your creditors. During this period you are expected to work out your next steps
  • Debt agreement. A debt agreement is binding between you and your creditors and lays out a set amount for you to repay
  • Personal insolvency agreement. This agreement between you and your creditors specifies an agreed amount for you to pay to your creditors in either regular amounts or as a lump sum

 

Informal options

Bankruptcy is not the only option if you are in financial distress. Flexible agreements with creditors can be reached that allow you more time to pay or lets you pay off the outstanding amount in instalments.

At WAIS our professionals can determine the best solution with you and outline the processes that are involved.

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