Our Services

Debt  Agreements

 

Our Affiliate, Australia Wide Administrators is a trusted and registered debt agreement administrator, the team at Debt Savvy can refer you to Australia Wide Adminstrators to facilitate debt agreements and ensure that you understand exactly what this will entail. Before we do however we also ensure that all other options are fully explored prior to presenting this option as it can have an effect on your ability to obtain credit in future.

What is a Debt Agreement?


For those who have not heard of a debt agreement, it is a binding agreement between you and your creditors and falls under Part IX of the Bankruptcy Act 1966. As a result of the debt agreement, your creditors will agree to accept an amount of money that you can afford to pay, over a set period of time, to settle your debts. This set period of time is usually from 3 to 5 years. Upon paying the agreed amount of money based upon your circumstance, if there is outstanding money owed, your creditors cannot recover this from you. Before we consider presenting this as an option to you we ensure that we have looked at every other possible solution as there are some things you should consider prior to getting a debt agreement in place which we will be more than happy to speak through with you after assessing your situation.




Important things to consider when talking to any company about a potential debt agreement.


Like any major financial decision, a debt agreement is a serious step. Before considering entering into a debt agreement, be wary of companies who don't carefully assess your individual circumstances and make sure that:The administrator is registered - Legally and to ensure that you are receiving teh right advice the company must be on the Australian Financial Security Authority's list of registered debt agreement administrators. Just like we are.Ask about the fees you will incur as a result of the debt agreement - Companies usually charge fees for their services to administer this agreement. We provide full transparency on our fee schedule so you know what this will entail.




Debts that aren’t covered by a debt agreement or may have special conditions if they are included in the agreement.


Secured debts These are debts that are the result of or tied to a some sort of asset, like a home for example. As a result this maybe something you have to sell in order to recover the money owed to a lender. Joint debts Creditors, while considering to receive money as part of the debt agreement for your portion of the joint debt, still have the right to recover any other additional money from your partner in the joint debt. Other debts to consider There are a number of debts that cannot be paid out by a debt agreement and will see you still liable to pay out these debts post the debt agreement. These include:

  • Any debts as a result of fraud
  • Child support debt
  • Any court order penalties or fines
  • HECS or HELP debts or other student financial supplement scheme debts
  • Overseas debts incurred. Depending on the laws in the country where you signed the contract, any outstanding balances from overseas debt may also be required for payment.




What are the benefits of a Debt Agreement?


While we understand that when you are considering a debt agreement you may not feel as though things are in control in your life, there are many benefits to entering into a debt agreement which will set you up for a brighter future. These include:

  • Better control over your financial situation - under a debt agreement you’ll know how much you’ll have to pay each week or fortnight to your creditors which will allow you to better budget and plan your finances.
  • The end of your unsecured debt - Once you complete the term of your unsecured debt you’ll be free from your unsecured debt.
  • Improved financial discipline - With no access to credit over the course of the debt agreement this will force you to live on what you earn, not what you can borrow. This is sure to set you up for a brighter future both mentally and financially.




What are the consequences of a Debt Agreement?


There are some consequences that you should be mindful of when entering a Debt Agreement: Your credit file is affected for 5 years or until your debt agreement ends (whichever is later) which will inhibit you from obtaining further credit during that period of time. Your name will be listed on the National Personal Insolvency Index for a period of 5 years or the date you complete the agreement under the act of bankruptcy. Some employment or licensing restrictions do apply whilst in a debt agreement If you don’t keep up with your repayments and fall too far behind creditors are within their rights to seek termination of the agreement, resume collection activities or apply for bankruptcy against you.
Only debts in your own name are covered, with joint debts the other person/entity is still liable to make normal payments toward the debt
Only provable unsecured debts can be included in the agreement, secured debts such as car and home loans as well as state fines cannot usually be included in the agreement.





We’d love to see how we can help you better manage your debt providing you with understanding and the best solution.

Informal Arrangements

 

If you require a shorter term arrangement, our experienced team can also assist with setting up an informal arrangement with your creditors giving you peace of mind and taking this burden off your hands.

What is an Informal Debt Arrangement?


As mentioned above, when your financial problems are shorter-term, negotiating with your creditors for personalised terms of payment may be the best course of action. This is what is called an ‘informal arrangement’ whereby creditors will be informed of your current financial situation and terms of your payments, loan amounts or freezing interest for a period of time will look to be agreed to in order to provide you with more time, and a more comfortable payment schedule for circumstances.




Things to consider when looking into an Informal Debt Arrangement


There are a few things that the team here at Debt Savvy want you to know about informal arrangements:

  • To get an informal arrangement with your creditors is not always easy - Being an informal arrangement, not all creditors may agree to it. Further to this, an informal arrangement is not binding.
  • If one or more of your creditors reject the the offer this could jeopardise the entire informal arrangement.
  • The more creditors involved, the less likely that an informal arrangement will be successfully executed.





How we can help you with an Informal Arrangement

The team here at Debt Savvy have years of experience in negotiating informal arrangements and can assist you by preparing a proposal to your creditors as well as liaising with your creditors on your behalf.

Budgeting Support and Assistance

 

A lot of the time we see people get into financial difficulty, it has been the result of not having a budget in place which results in credit card debt, unsecured debt, and then a situation where they find themselves requiring financial assistance.

 

When you spend more than you earn, an unexpected event can turn things upside down and that’s when things can start to spiral out of control. Sticking to a budget can help negate this.

What is a Debt Agreement?


For those who have not heard of a debt agreement, it is a binding agreement between you and your creditors and falls under Part IX of the Bankruptcy Act 1966. As a result of the debt agreement, your creditors will agree to accept an amount of money that you can afford to pay, over a set period of time, to settle your debts. This set period of time is usually from 3 to 5 years. Upon paying the agreed amount of money based upon your circumstance, if there is outstanding money owed, your creditors cannot recover this from you. Before we consider presenting this as an option to you we ensure that we have looked at every other possible solution as there are some things you should consider prior to getting a debt agreement in place which we will be more than happy to speak through with you after assessing your situation.




Important things to consider when talking to any company about a potential debt agreement.


Like any major financial decision, a debt agreement is a serious step. Before considering entering into a debt agreement, be wary of companies who don't carefully assess your individual circumstances and make sure that:The administrator is registered - Legally and to ensure that you are receiving teh right advice the company must be on the Australian Financial Security Authority's list of registered debt agreement administrators. Just like we are.Ask about the fees you will incur as a result of the debt agreement - Companies usually charge fees for their services to administer this agreement. We provide full transparency on our fee schedule so you know what this will entail.




Debts that aren’t covered by a debt agreement or may have special conditions if they are included in the agreement.


Secured debts These are debts that are the result of or tied to a some sort of asset, like a home for example. As a result this maybe something you have to sell in order to recover the money owed to a lender. Joint debts Creditors, while considering to receive money as part of the debt agreement for your portion of the joint debt, still have the right to recover any other additional money from your partner in the joint debt. Other debts to consider There are a number of debts that cannot be paid out by a debt agreement and will see you still liable to pay out these debts post the debt agreement. These include:

  • Any debts as a result of fraud
  • Child support debt
  • Any court order penalties or fines
  • HECS or HELP debts or other student financial supplement scheme debts
  • Overseas debts incurred. Depending on the laws in the country where you signed the contract, any outstanding balances from overseas debt may also be required for payment.




What are the benefits of a Debt Agreement?


While we understand that when you are considering a debt agreement you may not feel as though things are in control in your life, there are many benefits to entering into a debt agreement which will set you up for a brighter future. These include:

  • Better control over your financial situation - under a debt agreement you’ll know how much you’ll have to pay each week or fortnight to your creditors which will allow you to better budget and plan your finances.
  • The end of your unsecured debt - Once you complete the term of your unsecured debt you’ll be free from your unsecured debt.
  • Improved financial discipline - With no access to credit over the course of the debt agreement this will force you to live on what you earn, not what you can borrow. This is sure to set you up for a brighter future both mentally and financially.




What are the consequences of a Debt Agreement?


There are some consequences that you should be mindful of when entering a Debt Agreement: Your credit file is affected for 5 years or until your debt agreement ends (whichever is later) which will inhibit you from obtaining further credit during that period of time. Your name will be listed on the National Personal Insolvency Index for a period of 5 years or the date you complete the agreement under the act of bankruptcy. Some employment or licensing restrictions do apply whilst in a debt agreement If you don’t keep up with your repayments and fall too far behind creditors are within their rights to seek termination of the agreement, resume collection activities or apply for bankruptcy against you.
Only debts in your own name are covered, with joint debts the other person/entity is still liable to make normal payments toward the debt
Only provable unsecured debts can be included in the agreement, secured debts such as car and home loans as well as state fines cannot usually be included in the agreement.





How we can help you create your Budget

We’ve helped 100’s of Australians put together a realistic budget for their circumstances and would love to see how we could help you gain financial control.

Mortgage Refinancing

 

Mortgages are usually the largest of debts and if you are experiencing debt issues and require debt relief, refinancing your home loan may be the best solution for you.

How does mortgage or home loan refinancing work?


It works by simply applying for a new loan on your current property and using this new loan to payout the current home loan as well as any other debt that you may have.




What are the benefits of mortgage refinancing?


There’s many benefits to mortgage refinancing including:

  • The ability to be able to pay off your mortgage / home loan faster
  • It can extend the life of your loan making your monthly repayments smaller and more manageable
  • Potentially a lower interest rate
  • Debt consolidation of your credit card and unsecured loans at a lower interest rate making them more manageable




Debt consolidation through refinancing your mortgage


Home loan or mortgage refinancing is often done to consolidate credit card and personal loan debt. This is because a mortgage loan is usually available at a substantially lower interest rate than the interest rate you pay on your credit cards or personal loans. And by doing this, you can achieve a lower interest rate and make the your monthly repayments much more manageable and convenient in one payment. We know your financial situation is unique to you and understand that you require a solution tailored to you and your family. We’ll also ensure that you are fully informed over the entire journey.




What is Mortgage Refinancing?


Simply, mortgage or home loan refinancing uses the equity built up in your property to repay other high interest debts that you may have owing. This can then allow you to package up all your current monthly repayments into one convenient repayment and may have you paying less each month. This can even be an option for you if you fit into any of the following:

  • You are short-term employed or not employed long enough
  • You have an Irregular income
  • Self employed
  • Government Allowance including New Start
  • Previously bankrupt
  • Declined by another lender
  • Pensioner
  • Adverse credit history
  • Existing loan arrears or defaults
  • Limited savings history





The team at Debt Savvy have years of experience in mortgage refinancing and are here to see how we can help.

* in partnership with C Finance

Debt Consolidation

 

Debt consolidation is an option for those who are in debt and finding it hard to repay their monthly repayments.

What is a Debt Agreement?


For those who have not heard of a debt agreement, it is a binding agreement between you and your creditors and falls under Part IX of the Bankruptcy Act 1966. As a result of the debt agreement, your creditors will agree to accept an amount of money that you can afford to pay, over a set period of time, to settle your debts. This set period of time is usually from 3 to 5 years. Upon paying the agreed amount of money based upon your circumstance, if there is outstanding money owed, your creditors cannot recover this from you. Before we consider presenting this as an option to you we ensure that we have looked at every other possible solution as there are some things you should consider prior to getting a debt agreement in place which we will be more than happy to speak through with you after assessing your situation.




Important things to consider when talking to any company about a potential debt agreement.


Like any major financial decision, a debt agreement is a serious step. Before considering entering into a debt agreement, be wary of companies who don't carefully assess your individual circumstances and make sure that:The administrator is registered - Legally and to ensure that you are receiving teh right advice the company must be on the Australian Financial Security Authority's list of registered debt agreement administrators. Just like we are.Ask about the fees you will incur as a result of the debt agreement - Companies usually charge fees for their services to administer this agreement. We provide full transparency on our fee schedule so you know what this will entail.




Debts that aren’t covered by a debt agreement or may have special conditions if they are included in the agreement.


Secured debts These are debts that are the result of or tied to a some sort of asset, like a home for example. As a result this maybe something you have to sell in order to recover the money owed to a lender. Joint debts Creditors, while considering to receive money as part of the debt agreement for your portion of the joint debt, still have the right to recover any other additional money from your partner in the joint debt. Other debts to consider There are a number of debts that cannot be paid out by a debt agreement and will see you still liable to pay out these debts post the debt agreement. These include:

  • Any debts as a result of fraud
  • Child support debt
  • Any court order penalties or fines
  • HECS or HELP debts or other student financial supplement scheme debts
  • Overseas debts incurred. Depending on the laws in the country where you signed the contract, any outstanding balances from overseas debt may also be required for payment.




What are the benefits of a Debt Agreement?


While we understand that when you are considering a debt agreement you may not feel as though things are in control in your life, there are many benefits to entering into a debt agreement which will set you up for a brighter future. These include:

  • Better control over your financial situation - under a debt agreement you’ll know how much you’ll have to pay each week or fortnight to your creditors which will allow you to better budget and plan your finances.
  • The end of your unsecured debt - Once you complete the term of your unsecured debt you’ll be free from your unsecured debt.
  • Improved financial discipline - With no access to credit over the course of the debt agreement this will force you to live on what you earn, not what you can borrow. This is sure to set you up for a brighter future both mentally and financially.




What are the consequences of a Debt Agreement?


There are some consequences that you should be mindful of when entering a Debt Agreement: Your credit file is affected for 5 years or until your debt agreement ends (whichever is later) which will inhibit you from obtaining further credit during that period of time. Your name will be listed on the National Personal Insolvency Index for a period of 5 years or the date you complete the agreement under the act of bankruptcy. Some employment or licensing restrictions do apply whilst in a debt agreement If you don’t keep up with your repayments and fall too far behind creditors are within their rights to seek termination of the agreement, resume collection activities or apply for bankruptcy against you.
Only debts in your own name are covered, with joint debts the other person/entity is still liable to make normal payments toward the debt
Only provable unsecured debts can be included in the agreement, secured debts such as car and home loans as well as state fines cannot usually be included in the agreement.





Get in touch with the team here at Debt Savvy. We’ll take a holistic approach to your situation and find the best debt consolidation solution for you.

* in partnership with C Finance

Bankruptcy Assistance

 

While bankruptcy is a necessity for some situations, it is a last resort and will come with some not so pleasant consequences. At Debt Savvy we do recommend that you do speak to us before you declare bankruptcy as there are various options that may be suitable before you make a serious decision like this.

What exactly is bankruptcy?


The act of going bankrupt is a legal process that can be declared when an individual cannot pay their debts. Here, in Australia Bankruptcy is governed by the Bankruptcy Act 1966 and is regulated by the Australian Financial Security Authority. When you declare bankruptcy you give up control of your finances and assets to a Trustee who will provide you protection from legal action being taken against you by a person or entity to which you owe money. As we said, depending on your financial situation there may be an alternative to bankruptcy such as an informal arrangement, debt consolidation, a mortgage refinance, a debt agreement or a personal insolvency agreement and you should talk to us to find the best solution for you and provide you with professional advice on whether you actually do need to go bankrupt. Talk to us today!




Are there any debts that I will have to continue to pay if I declare bankruptcy?


Becoming bankrupt doesn’t mean that you will be free from all debts. Here’s a few that you may have to pay:

  • Any fines or penalties imposed from the court / legal proceedings
  • Unliquidated damages from accidents e.g. car accidents may be an exemption
  • Student assistance/supplement loans and HELP debts
  • Any utility bills and house rental payments
  • Other debts that you may occur post being declared bankrupt




Will my assets be protected when I go bankrupt?


There are some assets that you may be able to retain and others that will may be sold as a result of bankruptcy. Generally however, when you become a bankrupt what you retain includes:

  • Any of your possessions that help you earn an income up to a set limit
  • The majority of your personal and household items
  • Your vehicles up to a defined limit
  • The majority of funds in a complying super fund
  • Centrelink payments will be protected
  • Assets that may fall into the category of having to be sold when you go bankrupt include:
  • Property including houses; apartments; land; business and any other real property
  • Any motor vehicles which may not be exempt / over the set limit
  • Shares or other investments
  • Your tax refund
  • Proceeds from inheritance you may have received before or during your bankruptcy
  • Lotto winnings
  • Assets that you may have a joint share in with another individual
However before you declare bankruptcy, seek professional advice to ensure you are clear on what you will and won’t be able to retain.




Can bankruptcy affect my employment?


The simple answer is yes as it can affect your ability to hold certain licenses and working in various occupations. Your employer however is not normally notified of your bankruptcy unless you owe them money. You still will have to do a tax return.




What else should I consider before going bankrupt?


There are a number of things that declaring bankruptcy can affect.

  • Borrowing Money - If you borrow money, purchase any goods on credit or incurring credit in any way exceeding a set amount as part of your bankruptcy, this is an offence unless you inform the person you are dealing with that you are an undischarged bankrupt.
  • Operating a Business - While you can still operate a business while bankrupt,iIf you trade under an assumed name or business name either as a sole trader or in partnership, you will have to disclose your bankrupt status. You cannot be a director of a company or be involved in its management without the permission of the Court.
  • Change of Name, Address and Overseas Travel - You will have to make it known to the trustee of any changes of name or address and also receive permission to travel overseas as part of declaring bankruptcy.




Will bankruptcy affect my credit report?


Again, the simple answer is it will. Your name will be on the public record forever and will be on a commercial credit reference for 5 years even if your bankruptcy has been discharged. It is likely that creditors will also limit your ability to borrow from them. As a result, you may find it hard to find a rental home, asked for bonds when connecting things like utilities and also find some banking institutions may not want to open accounts as result of the bankruptcy.




How long will my bankruptcy last?


It will last 3-years unless the trustee objects to you being discharged which could see it extended for up to 5 more years. Again, before you decide on a course of action be sure to get in touch and talk with us here at Debt Savvy. We’ve had years of experience in this space and will ensure that you take the best course of action.





Before you decide on a course of action be sure to get in touch and talk with us here at Debt Savvy. We’ve had years of experience in this space and will ensure that you take the best course of action.

GET DEBT SAVVY TODAY!

Sign up to our newsletter and receive all the latest news and information on becoming debt free.