I owe a debt

There are many reasons why people find themselves in debt including financial over commitment, loss of job, sickness, gambling or just simply being unorganized. In our experience, most people want to pay their debts, but many don’t know how to go about it.

If you are unable to pay your debts immediately there may be options available to you, which may prevent any further action.

Get in touch: The first thing to do if you have a debt with us is to get in touch with us immediately. Tell us your story and we may be able to provide a simple solution to a quick and amicable repayment.

An ‘informal’ arrangement: If you have one or more debts and don’t feel you can pay immediately, again, talk to us – don’t leave it. We may be able to help with an informal TCS creditors arrangement. TCS will assist you with an informal / private agreement between you and your various creditors. We administer the arrangement, communicate with and seek the approval of your creditors and distribute the proceeds in a fair and equitable way. This is often the most simple and cost effective way of dealing with multiple debts.

A successful creditors arrangement will not always be possible. We believe however, that in many cases, investigating an informal arrangement is a good place to start. Importantly it doesn’t involve going further into debt to solve the problem.

Financing: Some financial institutions offer finance for those who are in debt. Often unencumbered assets such as property is required as security – and there are costs and obligations you need to be fully aware of.

Debt Agreement Under Part 9 of the Bankruptcy Act: A Debt Agreement allows an individual to formally negotiate a binding compromise with their creditors. This arrangement is recorded on your credit information file. Further information is available from Australian Financial Security Authority (AFSA).

Bankruptcy: If you are declared bankrupt, you are required to submit your assets and debts to the control of a Trustee. Bankruptcy generally lasts for three years and there is a range of obligations you are required to comply with during this period. Bankruptcy action is recorded on your credit information file in Australia for a period of 5 years. Bankruptcy is a serious action and should only be considered as a last resort.

Link to Legal terminology here.