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Our Advice For Those Who Owe Money

If you find yourself in a situation where you cannot pay your debts it is good to know there are options available to help with your situation. The first thing you should do is contact a professional who can discuss the available solutions that could assist.

Formal options

If you owe money that you are unable to pay back you may have to declare bankruptcy. There are four formal options under the Bankruptcy Act 1966. These are:

  • Declaration of intention to present a debtor’s petition – this offers temporary relief from creditors while you work out your next course of action
  • Bankruptcy – this lasts between one day and three years, after which you are released from most of your debts
  • Debt agreement – this is a binding agreement between you and your creditors and specifies a set amount for you to repay
  • Personal insolvency agreements – this is an agreement between you and your creditors which specifies an agreed amount for you to pay in either instalments or as a lump sum

Informal options

Rather than declare bankruptcy you may want to reach an agreement with your creditors that gives you more time to pay, allows you to enter into a flexible payment arrangement, or allows you to pay a smaller amount.

Whether you choose the formal or informal option, it is important to seek professional advice to ensure a workable solution is found quickly.


Our services are designed to lead to a fair result, with minimum fuss and maximum speed. For a FREE no-obligation chat please call 1300 547 724.


Jirsch Sutherland