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Bankruptcy and financial obligation agreements. You may be considering bankruptcy, or an alternative to bankruptcy called a 'debt agreement' if you can't pay your debts,.

Get advice and comprehend the dangers first

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You may be considering bankruptcy, or an alternative to bankruptcy called a 'debt agreement' if you can't pay your debts,. They are formal options that are legal underneath the Bankruptcy Act 1966.

While these formal choices may free you against financial obligation, they have severe consequences that are long-term. They are able to influence your job along with your capacity to get credit or loans as time goes on.

Explore all your valuable options first

Before considering bankruptcy or a financial obligation contract, be sure you explore your other choices for coping with unmanageable debt.

You could get assistance with these from a monetary counsellor.

Phone the free National Debt Helpline on 1800 007 007. The helpline is available Monday to Friday, 9:30am to 4:30pm.

Financial counsellors can help you understand also the impacts of bankruptcy and financial obligation agreements.

Dealing with unmanageable debt

Effie Zahos from cash Magazine explains the choices.

Bankruptcy

Bankruptcy could be the process that is formal of announced struggling to spend the money you owe.

You don't have to pay most of the debts you owe when you become bankrupt. Collectors stop calling you. However it can severely influence your likelihood of borrowing cash later on.