Questions and Answers

Most types of UNSECURED DEBT. Unsecured debt could be debt arising from credit cards, unsecured personal loans, and department store cards.

We contact each of your creditors (in addition to any involved collection agencies and attorneys) advising them that you've authorized us to help you resolve your debts. We also advise them to stop all communication with you and contact us about your accounts. If you receive further calls, you should refer them to our office and we will handle the situation and advise the creditor once again to stop communication with you.

Each and every situation is different. In general, however, we can only accept individuals who are currently in a state of financial hardship. This typically means loss of employment, injury, job downsizing, sudden loss of income, catastrophic theft, maternity leave, separation, sickness, or a hundred other financial reasons as to why you are in arrears or unable to maintain your minimum monthly repayments or clear the arrears on your accounts. The Debt Agreement proposal is for people who want to avoid bankruptcy, and settle their debts to their creditors at a lesser amount.

Many people faced with financial hardship rush to bankruptcy thinking they are resolving their debt problems, although their problems might have other better solutions. We believe bankruptcy should ONLY be used as a LAST RESORT. Only if all other debt relief options have been exhausted should you look at Bankruptcy.

No. All accounts will be closed and placed by your creditor in a different area, awaiting the agreed dividend payments that were agreed upon in your debt agreement proposal.

Upon you accepting to lodge a Part IX debt agreement we contact all of your creditors advising them you've authorized us to help resolve your debts. We also advise them to direct all collection calls to our office and stop communication with you. Most collectors would stop calling after we have contacted them. However, if you receive further calls, do not talk to them, instead you should refer them to our Office who will handle the situation and advise the creditor once again to cease communication with you.

We negotiate with your creditors to finalise your debts for amounts less than you owe, less than your outstanding balances. To try and obtain a new loan generally is difficult for people already in debt, or for those who have poor credit or those listed on Baycorp , to qualify for new loans.

You will be listed on the NPII index (National Personal Insolvency Institute). This listing is permanent. You will also be listed on Baycorp advantage for a period of 7 years.