Bankruptcy in Geelong – Which Path will you take?

There are usually going to be choices and conclusions in life, and Bankruptcy is no different!

You definitely should ensure you understand as much as achievable about Bankruptcy in Geelong. So when it boils down to Bankruptcy in Geelong, there are a great number of choices that we can take concerning who we are, who we approach, and simply what has occurred. So I want to tell you about 3 alternatives to Bankruptcy that people are often puzzled about– Debt Consolidation, Personal Insolvency Agreements, and Debt Agreements– with any luck I can help you become less confused when it refers to Bankruptcy and your options.

CHOICE 1 – Debt consolidation.

This is where you can have an agency wrap up your financial obligations into a singular package.


Can assist in saving money on interest.


There are huge amounts of fees required (Often canceling out the interest saved).

Won’t help if your credit rating is poor.

Won’t provide you a fresh start– simply cleaning up the old financial debt.

When it concerns Bankruptcy in Geelong, I want you to become conscious that everyone who gives you recommendations is going to have some kind of viewpoint (even myself) consequently be sceptical with something someone says to you about Bankruptcy. This is really most important when you consider Debt consolidation because if you speak with someone who works for one, they will obviously inform you that it is the best way since they want your money. Every loan that they help you wrap up into just one neat and tidy package is going to be another fee– there is a reason they are such a significant money-making sector. But, it can nonetheless be a great choice for you if you believe that getting all your financial debts in the one place is going to benefit – because even a small amount of interest saved over years easily builds up.

But chances are that in the event that you read this, you have possibly already tried this procedure, and found out that your credit rating is so poor that you can not get a combined loan, that you are already too far advanced and the small amount of interest saved on will not make a huge difference. Most likely you’ve just had enough of the phone calls, demands and feeling of desperation that debt carries– and you are looking for a solution that can give you a clean slate.

CHOICE 2 – Personal Insolvency Agreements.

A PIA is an adaptable way to arrange your financial obligations without becoming bankrupt, often it is a way of minimizing the quantity owed and arranging how and when everything is to get paid out. It doesn’t reach personal bankruptcy, but has a range of similar elements and involves designating a trustee to control your property and develop a proposal to your lenders.

It is not Bankruptcy, but rather an ‘act of Bankruptcy’ which implies that if you fail to properly set up a PIA a creditor can easily apply to a court to declare you Bankrupt and force you to follow those steps. So it may seem that PIA is a pretty good choice when it concerns Bankruptcy, but it is almost never an easy process to actually get all of your creditors to agree– and if you don’t get at least 75% of them to agree, the PIA fails and this will complicate the matter with Bankruptcy.

OPTION 3 -Debt Agreements.

Debt agreements are yet another type of binding understanding between debtor and lender similar to a Personal Insolvency deal.

So when it interests Bankruptcy in Geelong, what’s the significant distinction then?

Well the first hurdle is that it depends on just how much earnings you are handling, and certain other thresholds– If you come under the criteria you can lodge a debt agreement or a PIA, but if you are over your only alternative is a PIA. Likewise, you can not have had similar financial complications in the last 10 years for a Debt Agreement, but it is only 6 months for a Personal Insolvency Agreement.

So with Bankruptcy, what is the upside to a Debt Agreement? The debt agreement is often faster to set up and are a bit easier when it comes to managing trustees and coping with the government. It can also make it simpler to maintain managing your small business or be a director of a company.

When it comes to Bankruptcy I’ve become aware of creditors going with less than 80 % on infrequent occasions, but that typically only occurs with a public company entering receivership owing substantial sums of money (the type that makes the headlines). If you are owed $10million and you know the people who are obligated to pay you the money have a team of dazzling lawyers and some really smart frameworks in place and they offer 5 % of the debt, you may accept it and be grateful. Sadly, average people like you and me in Geelong aren’t going to get that lucky!

So in summary, you have 3 alternatives to Bankruptcy– Debt Consolidation, Personal Insolvency Agreements, and Debt Agreements.

I would suggest beginning by taking a look at a debt consolidation– but if you are too far in debt, it possibly won’t make a lot difference and you will be flooded with charges.

Then, you ought to take a look at whether you are a candidate for a Debt Agreement. If you aren’t, consider a Personal Insolvency Agreement. But despite which one you select, you ought to be reasonable with your expectations because when it comes to Bankruptcy nothing is uncomplicated.

If you wish to find out more about what to do, where to look and what queries to ask about Bankruptcy, then feel free to speak to Bankruptcy Experts Geelong on 1300 795 575, or visit our website:

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