Debt Agreement or Bankruptcy? What’s right for you?
PDS specialises in the areas of Debt Agreements and Bankruptcy.
A Debt Agreement is overseen by AFSA (Australian Financial Security Authority) and is a simple way to settle debts with creditors through a formal, legislative agreement which is then interest free. Formal debt agreements are a simple and cost effective alternative to bankruptcy. This may be your best option and avoid going further into debt or applying to become bankrupt. Interest on debts will cease as soon as AFSA accepts your proposed Debt Agreement for voting by your creditors. Most PDS clients pursue this option rather than Bankruptcy.
Bankruptcy can be declared if you are unable to pay your debts AND cannot come to a manageable repayment agreement with your creditors. Bankruptcy generally lasts for a period of three years. You may voluntarily petition to become bankrupt. This could be the best option for you if a Debt Agreement is not possible.
Both Debt Agreements and Bankruptcies may impose restrictions on you – to find out more please do not hesitate to contact us.