Online Debt Assessment Tool

Debt Free Australia help people solve debt problems with personal insolvency arrangements

We are open 5 days a week from 9am to 5pm and we offer a toll free phone service for Australians who are struggling with personal unsecured debt.

If you cannot pay your debts “as and when the repayments fall due” you may consider a formal agreement with your creditors known as a Debt Agreement or a Personal Insolvency Agreement.  A Debt Agreement or a Personal Insolvency Agreement is a form of debt consolidation as your debts are consolidated into one single payment per month.

The agreements are subject to strict application criteria, so call today to enquire if you are eligible.  These are regulated under the Bankruptcy Act.

We are experts at all personal insolvency services so you can be assured that we will provide completely unbiased advice. Our debt advisors are highly trained in all personal insolvency services and will provide advice in a friendly and no obligation manner.

Typically, if you have personal unsecured debt exceeding $8,000 and you cannot repay that debt then we will assess if you are eligible for a Debt Agreement or a Personal Insolvency Agreement.  These products may help you avoid bankruptcy. Typically to be eligible for a Debt Agreement or a Personal Insolvency Agreement you will need to be earning an income.

Take control of your life again and contact Debt Free for free confidential debt advice. Debt Free will help you solve your debt problem so you can become Debt Free!

Call Debt Free today on 1800 98 10 70 for debt consolidation advice.

Debt Free Australia offers

Debt Consolidation

Debt consolidation is usually an unsecured loan and is taken out with a financial lending institution to payout other unsecured debt (like credit cards or store cards). A financial lending instution will assess your ability to repay the consolidation loan.  People with a bad credit record may find it difficult to obtain a consolidation loan.  

We do not offer consolidation loans, however, we can assess your suitability free of charge.

Our friendly staff  will tell you whether or not consolidation is a good choice in your situation.

If you have been refused a consolidation loan and you are insolvent, you may wish to consider a Debt Agreement or a Personal Insolvency Agreement.

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Bankruptcy

Bankruptcy is a severe last resort for individuals who are insolvent (can not pay their debts as they fall due) and in most cases will last for 3 years. Whilst it protects you from your creditors and allows you to start afresh you need to think carefully about the implications it will have. Subject to certain exemptions, bankruptcy means your assets will be sold by your Bankruptcy Trustee. If you own your house, your Bankruptcy Trustee may force a sale of your house. For more information on Bankruptcy please refer to Frequently Asked Questions.

There may be a better solution than Bankruptcy – see how a Debt Agreement or a Personal Insolvency Agreement can help if you or your partner have regular employment.

You need to think about the implications of bankruptcy & there may be a better choice

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Debt Agreement

A Debt Agreement is not like a consolidation loan in that it is a formal agreement with your creditors and is usually arranged by a Registered Debt Agreement Administrator.  Usually a debt consolidation loan is arranged through a financial institution like a bank.  However, what a debt agreement does allow you to do is to consolidate or combine unaffordable debt.  Given a debt agreement is a formal agreement with your creditors, strict application criteria does apply (you need to be assessed as being unable to pay your debts, ie insolvent).

Typically the agreements are structured over 3 years or some times up to 5 years. We will help you establish what you can afford to pay to creditors under the agreement. 

A debt agreement may allow you to avoid the stigma of bankruptcy.

Debt Agreements are most suitable for people who have unsecured debts which exceed $8,000 but not more than $$88 379.20 and must be approved the the majority of your creditors ie at least 50% in value  of creditors who vote on your proposal .  In most cases a debt agreement will be over a 3 to 5 year period.

The main benefits of a Debt Agreement can be summarised as:

  • You may avoid the stigma of bankruptcy and enjoy the freedom to travel which bankruptcy does not allow;
  • Combine unaffordable credit card or store card debt
  • Freeze the interest to allow an affordable repayment plan

 If you are seriously considering a debt agreement, please understand that it is a formal agreement under the A Bankruptcy Act and as such:

  • It will be recorded on the National Personal Insolvency Index for life
  • It will be recorded on your credit file for up to 7 years (which means you may not be able to obtain new credit for up to 7 years)

For more information on a Debt Agreement please refer to Frequently Asked Questions.

Do you qualify for a Debt Agreement? Find out by giving Debt Free a call on 1800 98 10 70.

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Personal Insolvency Agreement – Part X Arrangement

A Personal Insolvency Agreement (PIA) is like a Debt Agreement in that it is a formal agreement with your creditors and strict application criteria apply.

The reason you may consider a PIA instead of a Debt Agreement is if your income or level of debt exceed the statutory thresholds as explained below:

  • income which exceeds $66 284.4 (after tax) or approximately $88,817 (before tax for Australian residents); or
  • unsecured debts which exceed $88 379.20.

A PIA is a legally binding agreement with your creditors which they must approve (at least 75% in value and at least 50% in number of creditors who vote on your proposal) .  In most cases a PIA will be over a 3 to 5 year period.

We will put your proposal to your creditors and in many cases they will accept to receive something less than full payment. Once approved, you will be protected against any further legal action which they may lead to a Bankruptcy.

The PIA proposal will detail what you will repay to your creditors and it will be based on what you can afford. The interest on your debts is frozen at the time your agreement is accepted. This will enable you to make one single payment each month over the period of your agreement. We will distribute the surplus funds to your creditors after we deduct our fee which will also be approved by your creditors.

 If you are seriously considering a PIA, please understand that it is a formal agreement under the A Bankruptcy Act and as such:

  • It will be recorded on the National Personal Insolvency Index for life
  • It will be recorded on your credit file for up to 7 years (which means you may not be able to obtain new credit for up to 7 years)

Do you qualify for a PIA? Find out by giving us a free call on 1800 98 10 70.

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