How Our Customers Achieved Success
Kristy & John's Debt Management Plan
Kristy and John have three children aged 5, 11 and 13. Both worked full time until John had a nervous breakdown. .
With John recovering and unable to work for four months, Kristy was finding it hard to make their mortgage repayments and cover basic living expenses on her salary. She’d taken out multiple high-interest credit cards to get by but was now drowning in over $70,000 of debt.
With limited equity, they weren’t able to sell their family home or refinance to cover the debts, and the situation was causing friction.
Unsure what to do or where to turn, Kristy gave us a call. After a free initial consultation, we determined that a Part 9 Debt Agreement was their best option. We assessed their income and expenses and found that they could clear the debts in five years by repaying $550 a month.
We negotiated with their creditors on their behalf and their terms in order to get the plan agreed. This involved explaining to creditors what they could afford and the timeframe for repayment.
Their creditors agreed to the arrangement which meant they had to pay back only 45% of their total debt.
The Impossible Was Possible
Kristy could repay their debts at an affordable amount, reducing the pressure.
Without the financial stress, the couple were able to focus on John’s return to health.
Kath's Debt Consolidation
Kath is a 58 year-old-mum of one working full-time as a personal assistant. She had recently gone through a bad break-up.
Although they were married, their house and several personal loans were under Kath’s name. Her husband had been contributing to paying them down when they were together, but he was refusing to communicate since the messy split, leaving Kath to repay all the debts.
As interest rates were low, she tried to apply for a home loan refinance, but this only damaged her credit score further.
When Kath got in touch with us, she was stressed and depressed to the point of being medicated. Her financial struggles were only compounding what was already a lonely and challenging time emotionally.
Kath spoke to one of our specialists, who reassured her she wasn’t alone. Our solution was to look at reducing her unsecured debt amounts and consolidate the debts into a new home loan.
Reduction In Monthly Payments
We reduced her overall debt by approx. $30,000 and secured a lower interest home loan.
No More Juggling
By consolidating her debts into a single home loan, managing them was much easier.
Life Began Again
Kath felt free to get on with her life now that she could service the debts alone.
Leigh had debts of approximately $60,000 and couldn’t afford to service it on his current income.
He had placed his company into liquidation six months earlier due to solvency issues and needed to avoid any personal action being taken against him. He solely held real property with net equity of less than $10,000 and a vehicle of minimal financial value.
After already losing his business, Leigh didn’t want to lose his house as well. He was feeling highly stressed and felt out of his depth.
When he reached out to us, we could sense his distress and spent time discussing his situation and allowing him to offload the burden, which he had been dealing with largely on his own. After assessing his finances, the only viable option at this stage was bankruptcy.
Our bankruptcy solution included entering a deed of forbearance. This allowed him to make affordable payments over the bankruptcy period towards his bankrupt estate whilst continuing to pay off his vehicle.
Unsecured Debts Wiped
Leigh was able to save over $45,000 through the bankruptcy and is now discharged.
Kept His Home And Vehicle
The deed of forbearance ensured he kept his home. He was also able to repay his vehicle, allowing him to retain the vehicle.
Freedom To Start Over
With no more harassing calls and better cash flow, he could breathe and start afresh.
Nick's Home Loan
Carpenter Nick divorced four years ago and had taken over all of the primary debts. He had also taken out $17,000 in debt to pay legal fees.
As a result, Nick had entered into a Part 9 debt agreement with his creditors around the time of the divorce to cope with his financial situation and the stress it was causing him. He was discharged from the arrangement the following year as agreed in the terms.
He now wanted to buy a new home. However, he was unable to find a lender due to his background and being self-employed.
Nick was frustrated by his situation. He knew he was now in a good financial position to afford a home loan, and although his income was irregular, his earnings were sufficient each month. We spent some time looking at his situation to decide if we could help.
His income declaration, six months of provided bank statements, and a review of his debt background showed he met our criteria. From here, we approached our panel of lenders to find a suitable home loan.
A Loan Was Secured
We managed to secure Nick a 30-year home loan at a low-interest rate.
Frustration Turned To Relief
Nick was relieved he could finance his new home and avoid the traps of loan sharks.
More Time For Business
With his home loan sorted, he could focus his efforts on growing his business.
Dave and Jo's New Budget
Young married couple, Dave and Jo, had two kids under five. Dave was a full-time graphic designer and Jo was a freelance writer.
The young couple were currently renting but were desperate to get on the property ladder and buy their first home. However, they have high monthly commitments, including childcare, plus two credit cards with $9,000 worth of debt, which they were just managing to pay.
Both admitted they weren’t good at budgeting and needed help to make their combined $70,000 budget work harder.
After talking with the couple, we could feel they were incredibly frustrated. They worked hard but couldn’t afford to put enough aside each month to save for a deposit and had lost track of their spending. We reassured them and started looking at their finances.
As well as creating a tailored budget, we helped them refinance their credit card debts and made suggestions to cut spending, including buying generic brands and swapping utility providers.
A Realistic Budget
We created an affordable budget, which still allowed them to enjoy a few treats.
Savings Added Up
A percentage of their income automatically went into a dedicated savings account each week.
Their Future Began
The couple were elated that the possibility of affording their first home was within reach.
Brian's Voluntary Administration
Brian owns a medium-sized construction company that had found itself in financial difficulties.
Part of the reason for the company’s financial struggles was economic slowdown. This resulted in a drying up of work and unmanageable debt levels. Finances had also been in the control of the finance manager, who hadn’t immediately alerted Brian to any issues.
Brian had attempted to rectify the problem by making quick fixes, such as eliminating all unnecessary spending, over a period of months.
When Brian contacted us, he was feeling stressed and overwhelmed. He had built the business up over many years and didn’t want it to close. He also felt the responsibility of having to pay wages and didn’t want to let any of his employees down.
We came in to assess the business and determined that it was still viable. As administrators, we then set about communicating with stakeholders, making changes and drawing up a DOCA.
Creditors Accepted The DOCA
The creditors voted by majority to accept the DOCA and received a partial return on their debt.
Employees Kept Their Jobs
The plan meant the debts were to be covered by future profits and selling assets.
A Black Cloud Was Lifted
Brian felt relief in the positive outcome and the mental strain gradually eased.
Mark and Lisa's Business Turnaround
Mark and Lisa owned and ran a local bar and restaurant that was struggling to break even and pay its debts.
The bar/restaurant was their first business venture as a couple, and while they had catering experience, they didn’t have strong business or financial backgrounds. Part of the reason for their struggles was that they were losing customers to other local competition,
They had been working on upping their marketing efforts and had already streamlined their staff to the bare minimum.
The couple were at tipping point, with the financial strain affecting their relationship and life outside of the business – creating a hostile workplace for staff. They eventually decided they needed external help and engaged us as turnaround and restructuring specialists.
We assessed the business and reassured Mark and Lisa that their business could be saved. Our plan included competitor analysis, pricing adjustments, replacing the chef, and working on online marketing.
Return To Profitability
The restructuring and turnaround efforts increased business and streamlined spend.
Better Business Direction
The process helped Mark and Lisa gain business clarity and plan for growth.
The couple began to get along again, staff were happier, and service improved.
Susanne's Company Liquidation
Susanne owned a small retail business selling clothes and gifts in a local shopping centre.
Increasing competition in the area and online had reduced sales and rent had also increased. As a result, she found herself struggling to keep up with costs and ATO payments. She had taken some actions to reduce costs, including letting a part-time staff member go.
Susanne was feeling highly stressed and had been hanging on hoping to save the business but realised that it simply wasn’t viable anymore.
Susanne initially wanted to avoid a formal insolvency appointment and initiated a closing down sale to pay off creditors. However, after this was insufficient, she decided to seek our help and appoint us as a registered liquidator.
When we took control of the business, Susanne felt a huge weight had been lifted, despite the disappointment. We sold the remaining assets, paid the outstanding debts, and finalised the closure for her.
No More Outstanding Debts
The assets sold generated enough money to pay a return to creditors and the process was low cost.
A Feeling Of Control
Because she decided to liquidate, Susanne felt in control and prepared for the outcome.
The Stress Was Over
Susanne was able to put the stress behind her and move forward in her life.
Andy's Financial Arrangement
Andy owned a waste management company that had decent demand but increasing debt.
He had plenty of customers enquiring but was having to turn them away as they didn’t have enough trucks to meet the demand. He also had a significant amount of debt accrued during the COVID downturn and construction pauses, including ATO tax debt.
Andy was feeling stressed about the debt and frustrated as he was unable to purchase two new trucks to increase capacity.
Andy had thought about getting a business loan or doing some type of refinancing but wasn’t sure what the best route was or which lenders to go to. He had heard about business loan and refinancing services and engaged us to see what we could recommend.
After assessing the business situation, we suggested that he take out an unsecured loan to relieve tight cashflow. We also recommended finance arrangements to buy new trucks.
Debt Was Paid Off
The loan enabled immediate payment of overdue debts with manageable repayments.
New Trucks Were Purchased
Andy was able to buy two new waste trucks and start taking on more work.
The Pressure Eased
Thanks to his proactivity, Andy felt relief and able to focus on the business again.
Chris' Tax Debt Repayment Plan
Chris owns a family glass company that had been struggling due to increased local competition.
Because of the drop in business, it has been hard to maintain enough cash flow to maintain day to day operations. As a way to access more cash, he had been treating the ATO as a bank, using GST paid by clients instead of holding it back to pay as part of his BAS.
Chris knew this wasn’t a great solution but feeling backed in a corner. It seemed like a quick fix until the ATO debts started mounting.
Chris felt regretful of his situation and blamed himself, but realised he needed help to get out of it. He didn’t want to let his employees go short or lose the business. He sought our help as tax debt experts, and we reassured him that the situation could be rectified.
We worked out he had a tax debt of approximately $50,000. We then spoke with the ATO, explaining the situation and proposed a repayment plan, which included selling some non-essential assets.
Repayment Plan Was Agreed
The ATO accepted a monthly repayment plan, plus an initial upfront payment.
The Stress Dissolved
Chris didn’t have to worry about dealing with the ATO or action being taken.
Lessons Were Learned
Thanks to our advice, and working in conjunction with his accountant, Chris made changes to ensure he could meet future liabilities.