Bankruptcy is one of the least desirable outcomes that could arise from mortgage stress, and should be avoided at all costs. There are many avenues to seek bankruptcy advice, but the most reliable ones come from experienced financial professionals themselves. Sterling Debt Advisory is a team of professional bankers, lawyers and accountants that have the experience and expertise to help you emerge from your mortgage stress in the best shape possible.
Sterling Debt Advisory takes the approach of bankruptcy being only a last-resort option. This is because our team understands the severe consequences of filing for bankruptcy, and all of the alternative options. We have successfully avoided bankruptcy for our clients through negotiation with lenders, restructuring of finances, strategic sales of investment assets and other measures. Right from the beginning, you can trust our team to lay out all of these options and discuss the benefits and drawbacks of each. We are proud to say that in our history we have almost never advised bankruptcy as a course of action.
When the situation appears helpless, bankruptcy may seem like the easiest, or in some cases, the only option. However, our experienced team has worked with a vast range of scenarios and has been able to recover even the most challenging ones without resorting to bankruptcy. Sterling Debt Advisory is more than willing to discuss your mortgage stress and bankruptcy concerns at any time.
Did you know?
- According to AFSA, there were 15,329 bankruptcies filed in Australia in 2018-2019.
- Declaring bankruptcy in Melbourne is handled by the Australian Financial Security Authority (AFSA), an government agency that deals with bankruptcy applications.
- When you go bankrupt, the AFSA appoints a trustee which is the person or body that manages your bankruptcy on your behalf. They work with you and your creditors to achieve a fair and reasonable outcome.
- When you file for bankruptcy, it is your obligation to provide relevant information to your trustee and this includes changes to your life’s circumstances. You can also nominate a registered trustee of your choice. If you choose not to, the AFSA will appoint the Official Trustee which is a body corporate that fulfils the same role.
- Contrary to what most people think, filing for bankruptcy doesn’t eliminate all of your debt. Your trustee can pay some of them by either selling your assets or through compulsory payments. Unsecured debts such as utility bills and credit cards are generally covered in bankruptcy while secured debts such as a financed car will still have to be paid, provided that you want to keep the item you’re willing to pay for.
- While creditors cannot pursue you for debts that are covered by bankruptcy, they may hold you off some of their services while the debts exist. For example, if you list your utility bills debt on your bankruptcy, the service provider (i.e. internet, electricity provider) may shut off those services.
- While bankruptcy can relieve you of some your debt, it come with many downsides.
- For one, your trustee has the power to sell your assets like your house and your property. If you’re employed and you’re earning a set amount, you will need to make compulsory payments to your trustee. It may also affect your ability to gain some types of employment.
- Secondly, one of the biggest downsides of bankruptcy is how it can seriously hurt your credit score. Any attempts of obtaining credit in the future will prove almost impossible and your name will be permanently recorded in the National Personal Insolvency Index.