Like everything in life you will always have a choice, and Bankruptcy is the same!

You want to make sure you know as much as you can before you declare bankruptcy in Australia. What it boils down to is making the right decision the first time by getting the right advice filing for Bankruptcy in Australia has serious implications. There are several options that we can help you with no matter what your circumstances. Put simply you have just a few insolvency options to consider, that our clients are often confused about.  First is a Debt Consolidation Loan.  Second is a Personal Insolvency Agreement, and finally Debt Agreements and with any luck we can help you figure out the right way to go.

OPTION 1 – Debt Consolidation Loan.

This is where you can have a private finance company pile all of your debts into one giant basket and hopefully save you some interest along the way.


Will help you save some interest its better than paying 24% on some ridiculous credit card with great reward points.


This is not a free service companies provide, there are fees which at times can cancel out any interest you could of saved.

Your credit rating has to be pretty good if it has defaults then you will struggle to get one of these loans.

You don’t get a fresh start, you are just transferring the problem.

You need to have a good income to sustain the total loan.

In short if you are thinking of filing for bankruptcy, you must be aware of the kind of advice you are getting, everyone in the financial services industry who gives you recommendations or advice is going to feature some sort of viewpoint (even myself) therefore its really difficult to get a truly impartial opinion so be a bit sceptical when somebody dishes out their advice. This is really very important when or if you are considering debt consolidation as an option because if you talk to a debt consolidation specialist guess what kind of advice you might get?  They will obviously inform you that it is the best way because they want your money. Every loan product that they assist you with earns them commission, they will wrap up all your debts into one nice and tidy bundle and that will be that.  The debt consolidation industry is huge, everyday you will see the ads on TV they make serious money.Having said all of that, it maybe a really good option for you if your stuck feel free to give us a call we can help you work through your options.  If you feel that getting all your debts put neatly into one place and it will benefit you then do it.  In some cases even a small amount of interest saved over several years is worth it.

But chances are that if you are reading this, you have probably already attempted to get one of these loans, and found out that for whatever reason your credit rating is cactus and you didn’t qualify. More than likely you’ve simply had enough of the nagging phone calls, demand notices and harassment that overwhelming debt brings and you are searching for a final solution that can give you a fresh start.

Option 2 – Personal Insolvency Agreements.

A personal insolvency agreement or PIA is still much like bankruptcy is has the same effect on your credit file, its still an act of bankruptcy, with a downside, you still have to pay back the money.  The reason some people choose this option is because they cannot go bankrupt they own too many assets or it will affect their employment.You will still need a to appointa trustee to manage your property and generate a proposal to your creditors.

Remember it is not Bankruptcy, but instead 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 adhere to those steps. On the surface it may seem like a PIA is a really good idea but when it comes down to it, its not that simple.  You need to have all your creditors agree or at least 75% of them to agree on settlement terms then the PIA fails and this will complicate things moving forward.

OPTION 3 -Debt Agreements.

Debt agreements are yet another form of a binding understanding between debtors and creditors similar to a Personal Insolvency Agreement.

You need to qualify for this option, having a good income is critical to prove that you can pay back the money.  This initial obstacle is that it relies on just how much income you are dealing with, and particular other thresholds.  If you come understand the requirements to lodge a debt agreement or a PIA, but if you are over your only option is a PIA.

What you may ask is the advantage then of a Debt Agreement?  You may get to keep significant assets like a house if you can meet all the requirements and essentially pay back the debts.  Often these are quite simple to set up and are a bit simpler when it involves managing trustees and managing the government. It could also make things easier to keep managing your business or be a director of a company.


In summary, there are 3 alternatives to declaring bankruptcy a Debt Consolidation Loan, a Personal Insolvency Agreement, and a Debt Agreement.

If you are totally confused feel free to give a no obligation phone call to learn more about what to do.  Bankruptcy is a big decision and we are here to help, don’t hesitate to call Bankruptcy Experts on 1300 795 575, or visit our website: