Keeping on top of your finances and making repayments is sometimes not enough to rise above unmanageable debt. High interest loans, penalties and life changes can all affect your ability to pay your debts. If you are in serious personal debt and cannot meet your repayments, insolvency can be an option. On this page you will find the options available to us if Principle Insolvency is working on your personal debt worries.
Debt Repayment Order
A debt repayment order (DRO) is probably the best insolvency option for you if you owe less than $50,000 in unsecured debt and are able to make some repayments on your debts.
No Asset Procedure
A no asset procedure (NAP) is probably the best insolvency option for you if you owe less than $50,000, have no assets and have no extra money to make repayments on your debt.
Bankruptcy
Bankruptcy may be a good insolvency option for you if you owe more than $50,000. It is a way to clear your debts if there is no way you can pay back the individuals or organisations you owe money to. Bankruptcy is your only option if you have been accepted previously into a No Asset Procedure or Bankruptcy. Being late on enough debt payments can be grounds for a creditor to file a bankruptcy application on your behalf. Therefore, it i’s best to stay in touch with your creditors, and if necessary, file for bankruptcy yourself. This gives you more control around the initial stages of the process.
Part 5 Proposal
A Part 5 subpart 2 proposal under the Insolvency Act 2006 offers a great alternative to bankruptcy. It is not easy to prepare and the requirements are quite stringent. However, if the proposal succeeds, then you may be paying just cents on the dollar to get rid of your debt. And while you will have to honour the obligations outlined in the proposal, you will not have to comply with the usual provisions of a bankruptcy. For e.g., you will be able to carry on a business and travel overseas. This proposal is in effect an agreement between you and your creditors. Talk with us to see if this option could work for you.