When a person is completely unable to manage or control their debts anymore or deal with the lenders in a suitable manner, bankruptcy is the only possible option for them. This being the situation, declaring bankruptcy in Australia would mean having to meet various criteria and disclosing specific private information. Bankruptcy is the last step that an individual should opt for. The process is straightforward with a lot of legal consequences. It is recommended that a debtor always works with a registered trustee. When working with this type of expert, the debtor remains insolvent for a period of about three years as opposed to five or seven years when being represented by no one but themselves. While declaring insolvency a person is freed from all his or her debt but major expenditure such as child maintenance cannot be avoided at any cost.
3 forms that needs to be filled and submitted to the AFSA
Three forms have to be completed and filled when declaring bankruptcy in Australia. The forms are a debtor's petition, a statement of affairs and signing of various acknowledgements. The debtor's petition basically outlines what needs to be claimed. The statement of affairs contains the specific reasons with regard to why the debtor is filing bankruptcy. The debtor has to finally sign many acknowledgements that convey that he or she has understood all the information with regard to insolvency.
Types of debt consolidation loans
In Australia, debt consolidation loans are of the following types; home equity loans, credit card balance transfers and personal loans. Consolidating debt would mean having a lower interest rate as opposed to the rate that the debtor had been paying. The monthly debt payment is lowered by increasing the repayment period. A personal loan is a type of a unsecured loan which encourages only fixed payments over a time period which is also fixed. Choosing the option of credit card balance transfers would mean taking advantage of the promotional rates that are offered for a specific period of time which usually lasts up to eighteen odd months. A home equity loan is taken by using the equity of a person's home as collateral. This is done so that the lender has some recourse to the money owed to him.
Debt consolidation loans give debtors some relief
For an Australian, debt consolidation loans has become a convenient and hassle free method of dealing with multiple payments and debts. This method has been found to be very helpful if a person has run up his or her credit card while in school or have a big car or student loan which usually has high rates of interest as it enables all these debts into a manageable payment which harbors lower interest. Consolidating debt depends on a person's financial situation. Most often when people are in this situation they look for finance professionals for counseling and advice. Debtors also have the option of getting the fresh loans with the choice of either fixed or variable rates of interest.
3 forms that needs to be filled and submitted to the AFSA
Three forms have to be completed and filled when declaring bankruptcy in Australia. The forms are a debtor's petition, a statement of affairs and signing of various acknowledgements. The debtor's petition basically outlines what needs to be claimed. The statement of affairs contains the specific reasons with regard to why the debtor is filing bankruptcy. The debtor has to finally sign many acknowledgements that convey that he or she has understood all the information with regard to insolvency.
Types of debt consolidation loans
In Australia, debt consolidation loans are of the following types; home equity loans, credit card balance transfers and personal loans. Consolidating debt would mean having a lower interest rate as opposed to the rate that the debtor had been paying. The monthly debt payment is lowered by increasing the repayment period. A personal loan is a type of a unsecured loan which encourages only fixed payments over a time period which is also fixed. Choosing the option of credit card balance transfers would mean taking advantage of the promotional rates that are offered for a specific period of time which usually lasts up to eighteen odd months. A home equity loan is taken by using the equity of a person's home as collateral. This is done so that the lender has some recourse to the money owed to him.
Debt consolidation loans give debtors some relief
For an Australian, debt consolidation loans has become a convenient and hassle free method of dealing with multiple payments and debts. This method has been found to be very helpful if a person has run up his or her credit card while in school or have a big car or student loan which usually has high rates of interest as it enables all these debts into a manageable payment which harbors lower interest. Consolidating debt depends on a person's financial situation. Most often when people are in this situation they look for finance professionals for counseling and advice. Debtors also have the option of getting the fresh loans with the choice of either fixed or variable rates of interest.