What we do

Debt Free offers a range of Bankruptcy Support to Australians who are struggling to repay debt. Debt Free has a range of options available to suit most Australians. Our aim is to fully explore your options before you make any decision regarding your debt.

The products which we are licensed to provide are:

• Debt Agreement
• Personal Insolvency Agreement
• Bankruptcy

If we feel another product is suitable for your circumstances we may refer you to another organisation.

There are many debt management options and we strongly recommend that you fully research every available option before proceeding with any selected service.

Detailed below is a brief description on your possible options:

Debt Consolidation— Debt consolidation is the process of taking all your debts (credit card debt, store cards, personal loan debt etc) and consolidating the debts into one manageable loan.  Debt consolidation can be achieved several ways.  The best option is to apply to a financial institution for a consolidation loan (or a personal loan) to pay out your other unsecured debts.  If you are unable to secure a consolidation loan, you may need to consider a Debt Agreement or a Personal Insolvency Agreement.

Equity Release — If you own a house and you have sufficient equity in the house you may be able to apply for an equity release.  This means you may be able to borrow more money against your house to repay your unsecured debts.  The benefit of doing this is that the rate of interest is usually lower and the monthly repayments will be less.

Informal Arrangement— We recommend that you should first approach your creditors and seek for the debt to be rescheduled into more affordable repayments.  The benefit of an informal arrangement is that you may be able to keep your credit rating in tact if you can agree repayment terms with your creditors.  If you are not able to negotiate an arrangement with your creditors, you may need to consider a Debt Agreement or a Personal Insolvency Agreement.

Debt Agreement — A Debt agreement is a legally binding agreement between you and your creditors.  A Registered Debt Agreement Administrator will help you formulate a budget and a debt repayment plan.  Your debt repayment plan will be submitted to your creditors for their consideration.  The benefits of a Debt Agreement is that the interest on the debts will be frozen, however, if you consider a Debt Agreement you must be aware that it is a regulated product under the Bankruptcy Act and ITSA keeps a national register of people who enter into such agreements.  Your credit rating will most likely be effected for up to 7 years after entering into a Debt Agreement.  To learn more about a Debt Agreement click here.

Financial Counselling— A financial counsellor can assist people who are in financial difficulty.  Many charities (like the Salvation Army and Lifeline Australia) offer a free and independent service.  A financial counsellor may be able to help you with a short term financial crisis.

Budgeting — Budgeting is a simple and effective way of controlling your finances.  Budgeting is the process of documenting your household income and expenditure.  Typically a household needs to have a surplus of income over expenditure.

Debt Negotiation— Debt negotiation is a negotiation between you and your creditors to settle on terms that are mutually beneficial to both parties. Typically creditors will want to be paid in full following a debt negotiation which may not always be possible.

Bankruptcy — Bankruptcy is the last resort for people who cannot repay their debts.  In most cases bankruptcy will last for 3 years.  Bankruptcy It protects you from your creditors and allows you to start fresh.  You should think carefully about the implications of bankruptcy and to learn more about bankruptcy click here.  Subject to certain criteria, bankruptcy means your valuable assets will be sold by your Bankruptcy Trustee.  Before proceeding with bankruptcy you should enquire as to whether you qualify for a  Debt Agreement or a Personal Insolvency Agreement.

Personal Insolvency Agreement — A Personal Insolvency Agreement is another way for people to deal with unsecured debts (such as credit card debt, store card debt, or personal loan debt) which you cannot afford to repay and is an alternative to bankruptcy.  People usually propose a Personal Insolvency Agreement if they exceed the Debt Agreement thresholds.

A Personal Insolvency Agreement is a legally binding agreement with your creditors which must first be approved by them. We usually recommend a Personal Insolvency Agreement between three to five years. We will put your proposal to your creditors and they will generally accept to receive something less than full payment. Once the agreement is approved by your creditors, a Personal Insolvency Agreement will protect you against any further legal action. To learn more about a Personal Insolvency Agreement click here.

If you would like to find out more about the products we offer please contact us for a Free phone consultation on 1800 98 10 70.