Case study

How Peter wiped $66,000 in debt and secured a fresh start for retirement

Bankruptcy
Initial debt
$128,700
Outcome
Wiped ~$66,000

Key results at a glance

Results that speak for themselves
$66,000
Estimated debt reduction
1
Affordable fortnightly repayment
Secured asset
Retained motor vehicle

The challenge

Despite his high income and strong work ethic, unmanageable loan terms left Peter trapped in a debt cycle, severely impacting his ability to prepare for retirement.

Overwhelming loan demands

Peter was juggling loans totalling nearly $130,000 across ANZ, Harmoney Australia, and MoneyMe, making it impossible to keep up with the required terms.

Retirement anxiety

The high cost of servicing his debts meant Peter was unable to save, threatening his goal of living a comfortable life in his retirement years.

Asset concerns

As his only significant asset was a motor vehicle under finance, Peter needed a solution that wouldn’t strip him of his essential transport.

The solution

After reviewing Peter’s financial position and age, we identified that voluntary Bankruptcy was the most strategic option to eliminate his unmanageable loans while protecting his future.

Comprehensive financial assessment

We evaluated his high income as a fitter, his financed motor vehicle, and his $130,000 debt spread across three major lenders.

Practical guidance

We provided a clear, non-judgemental overview of the bankruptcy process, explaining that it would be completed over three years and allow him a fresh start.

Tailored repayment structure

We helped establish his required income contributions, simplifying his obligations down to one affordable payment of approximately $730 a fortnight.

Complete transparency

We ensured Peter understood all conditions of the bankruptcy, including the likelihood that any large ATO tax refunds would be paid to the bankrupt estate.

Why this approach worked

Getting started is easy and straightforward

Reason 1

Substantial debt elimination

Going bankrupt allowed Peter to immediately address his financial burden, ultimately wiping an estimated $66,000 off his total debt – effectively a 50% reduction.

Reason 2

Simplified financial management

Instead of struggling to pay three separate lenders on strict terms, Peter now makes a single, affordable fortnightly income contribution to one entity, making it much easier to budget and save for his retirement.

The result

Peter successfully entered voluntary bankruptcy, experiencing immediate financial relief and peace of mind. The outcome eliminated the aggressive loan terms and provided a realistic, stress-free framework. He retained his car, shed $66,000 in debt, and can now focus entirely on building a comfortable retirement.

Before
After
Improvement
Total debt
$130,000
Income Contributions
~$$66,000 savings
Number of payments
3 separate demanding loans
1 consolidated contribution
Streamlined administration
Asset status
Risk of losing essential transport
Financed motor vehicle retained
Essential assets protected
Business operations
Struggling to save
Affordable fortnightly budget
Secured financial future

Additional benefits

A comprehensive approach to your financial recovery

Successfully kept financed motor vehicle for work and daily life.

Reduced financial stress by eliminating the pressure from multiple lenders.

Affordable fortnightly payments allow for comfortable living and retirement saving.

On track to be completely discharged and debt-free in three years.

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