you do not need to see a financial advisor, you need to see a financial counsellor - usually run by your local charith groups.
GL hun, its a rough road but you really need to get to the bottom of it.
and, if you do become insolvent there are lots of things you cant do - but lots of things that you still can. call your local govt agency who runs insolvency in your state and ask for an info pack
I would also add that you should not take on any loans for anything for him - to protect yourself and your own credit rating.
Don't let him have a secondary card on your credit card account or get a car loan if the car is for him etc. Don't lend him your own money at all - you need to keep as clear from his financial mess as possible.
He is a big boy and he needs to man up and take responsibility for his mess and not drag you into it with him. He needs to cut up his credit cards and go talk to Fox Symes before he gets himself in any deeper.
I used to use a diary called Moneybags (google it, they were WA-based) where I would account for every single dollar I spent so I always knew exactly how much I had to spend and so I had the money there for everything when I needed it. It really taught me that budgeting is simple maths and you can't spend what you can't have. Sounds obvious but once he puts it into practice he will never be the same again.
Just because he is older doesn't mean he is smarter. Time for some tough love on your part, I'm afraid.
That sounds like such a tough situation. It sounds like he has taken out a debt agreement (this is called being insolvent), in which case Fox Symes would not have actually paid out his debt, but negiotated with his creditors so that he can make smaller repayments, and all interest is put on hold, this is done through ITSA, which is a government agency. It means that as long as he is making his payments his creditors cannot chase him for the full amount owing and cannot charge interest.
I am guessing he would be making weekly payments to Fox Symes and they would then be distibuting these payments to his creditors. He would have made initial payments to Fox Symes which covers their fee.
To be perfectly honest I am not sure that there are ANY provisions to be made with this so that you can set up a payment plan if you get behind....as far as I know if you get behind.....that is it. There is absolutely no option to reduce the repayments once you have entered into a debt agreement, it is legally binding, and if you break this agreement at any time it means that the creditors can once again begin chasing you for the full amount you owe INCLUDING INTEREST.....
Taking out a debt agreement is usually the very last option before bankruptcy anyway. The difference is that you still pay back your debt, every cent, where as with bankruptcy you do not. Debt Agreements stay on your credit file for 7 years, but you there are no restrictions on overseas travel or how much you are able to earn. If he goes bankrupt there will be major major restrictions on how much he is able to earn.....
I would be calling Fox Symes STRAIGHT AWAY, because as I said there is no leeway on Debt Agreements, you HAVE to make the repayments....
I don't mean to try and worry you more sweet, it is just how it works. I can't remember who said that you need to check where he is spending his money, but I agree, you really need to find out what the underlying cause is here, because otherwise this will continue.
A lot of people sometimes find themselves in a worse situation when taking out a Debt Agreement because they commit to repayments that are not sustainable. When you are taking out a DA, you need to be really honest in how much you are earning etc so that a repayment plan is worked out that is going to be easy to keep up with.
Last edited by Sweet Bliss; July 16th, 2009 at 10:27 PM.
Bankruptcy is not an option! You really need to consider how long it's going to be for! You also need to consider the amount you're going down for.
When I was in collections, there was a family who had come into money and their bankruptcy was almost over. But the creditors, especially the company I represented, wanted their share. Mine was the deciding vote, and we took it. I didn't last long in collections after that (I felt the karmic repayments would be too much to bare so I got out)
You might think it's a huge amount, and that bankruptcy may be the solution, but it really isn't. Maybe when you speak to the bankruptcy person they may have a better answer for you.
Last edited by montyp; July 29th, 2009 at 08:17 PM.
I talked to him again about it and i asked him to call Fox Symes, which he did and they told him that he would be stupid to go bankrupt and they are now helping him come up with ways to get back on track. And now that i have a job it wont take very long to get on track. I just think he was really stressed and saw no light at the end of the tunnel and wanted to take the easy way out.
Thanks again ladies for all your advice I knew little about what is involved in going bankrupt.
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