There are usually going to be alternatives and judgments in life, and Bankruptcy is no different!

You truly need to make certain you understand as much as possible about Bankruptcy in Townsville. So when it boils down to Bankruptcy in Townsville, there are a great number of alternatives that we can have concerning who we are, who we contact, and just what has occurred. So I want to inform you about 3 substitutes to Bankruptcy that people are often confused about– Debt Consolidation, Personal Insolvency Agreements, and Debt Agreements– with any luck I can really help you become less lost when it comes to Bankruptcy and your decisions.

CHOICE 1 – Debt consolidation.

This is where you can have an agency wrap up your debts into a single package.


Can assist in saving money on interest.


There are many fees required (Often surpassing 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 obligation.

When it comes to Bankruptcy in Townsville, I would like you to be informed that everybody who offers you suggestions is going to feature some kind of bias (even myself) and so be sceptical with anything a person tells you about Bankruptcy. This is really critical when you look at Debt consolidation because if you talk to a person who works for one, they will of course inform you that it is the best way because they want your money. Every loan that they assist you wrap up into just one nice and tidy bundle is going to be an additional charge– there is a reason that they are such a substantial money-making sector. But, it can nonetheless be a really good alternative for you if you feel that having all your financial debts in the one place is going to benefit – because even a small amount of interest saved over years effortlessly adds up.

But chances are that in the event that you read this, you have possibly already tried out this step, and discovered that your credit rating is so weak that you can not get a combined loan, that you are already too far advanced and the small amount of interest saved won’t make a difference. Most likely you’ve just had enough of the phone calls, demands and feeling of desperation that debt carries– and you are looking out for a remedy that can offer you a new beginning.

CHOICE 2 – Personal Insolvency Agreements.

A PIA is a versatile way to organize your debts without becoming bankrupt, often it is a way of minimizing the quantity owed and organising exactly how and when everything is to be paid off. It doesn’t go as far as insolvency, but has a range of similar aspects and involves appointing a trustee to manage your property and develop a proposal to your lenders.

It is not Bankruptcy, but instead an ‘act of Bankruptcy’ which means that if you cannot properly establish a PIA a creditor can simply apply to a court to declare you Bankrupt and force you to follow those steps. So it may seem to be that PIA is a good choice when it comes to Bankruptcy, but it is seldom an easy process to actually get all 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 another form of binding arrangement between debtor and lender similar to a Personal Insolvency arrangement.

So when it pertains to Bankruptcy in Townsville, what’s the significant distinction then?

Well the initial hurdle is that it depends upon the amount of income you are dealing with, and specific other thresholds– If you come under the requirements you can lodge a debt agreement or a PIA, but if you are over your only option is a PIA. In a similar way, you can not have had similar financial concerns in the previous 10 years for a Debt Agreement, but it is only 6 months for a Personal Insolvency Agreement.

So with Bankruptcy, what is the benefit to a Debt Agreement? The debt agreement is often a lot faster to put together and are a little bit less complex when it concerns controlling trustees and dealing with the government. It could also make it simpler to keep running your small business or be a director of a company.

When it concerns Bankruptcy I’ve come across lenders opting for less than 80 % on infrequent occasions, but that typically only occurs with a public company entering into receivership owing significant sums of money (the type that makes the news reports). If you are owed $10million and you realize the people who are obligated to repay you the money have a team of fantastic attorneys and some really clever frameworks in place and they offer 5 % of the financial debt, you may accept it and be grateful. Regretfully, ordinary punters like you and me in Townsville aren’t going to get that privileged!

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

I would certainly advise starting by considering a debt consolidation– but if you are too much in the red, it most likely won’t make a lot difference and you will be inundated with fees.

Then, you need to consider whether you are eligible for a Debt Agreement. If you aren’t, look at a Personal Insolvency Agreement. But despite which one you select, you should be realistic with your expectations considering that when it involves Bankruptcy nothing is simple.

If you wish to learn more about just what to do, where to turn and what queries to ask about Bankruptcy, then do not hesitate to get in touch with Bankruptcy Experts Townsville on 1300 795 575, or visit our website: