Three boxes to tick for a fix

Make sure your life can function normally during the transition from extreme debt to living debt-free.

Prepare a budget to work out how much money you need for everyday living. This amount should be set aside from your pay, and not used to sort your debt.

Discuss with your family what you want to achieve in the next five years. Do you want to save for a new household appliance, furniture or a holiday, or build a nest egg for financial security? It’s important to have something to look forward to.

Three ways to solve the problem

There are three options under the Bankruptcy Act to remove your extreme debt problems: bankruptcy, personal insolvency agreement and debt agreement.

Talk to an advisor to help you explore, consider and understand all three, but don’t let them tell you what to do. Only you understand how your life works and you need to decide what option is best for you.

Get a second opinion, or more, so you can make the decision that works best for you and your family.

Alan Nicholls’ no obligation help desk

Nicholls & Co provide a free, no obligation ‘help desk’ for people considering bankruptcy – we discuss and explain bankruptcy and answer questions for anyone who is considering bankruptcy. The Nicholls & Co help desk can be accessed by phone (1300 060 122) or helpdesk@nichollsco.com.au . Alan Nicholls, Registered Trustee in Bankruptcy is also available to answer your questions to enable you to decide if bankruptcy is right for you.