Bankruptcy

Whilst this is a site about bankruptcy it is important to point out there are a number of options available that a person in debt can also consider. Depending on your circumstances one of these options may be preferable to bankruptcy and in many cases offering a Part 9 Debt Agreement (see below) is a viable alternative for anyone who wants to pay back something as opposed to going straight into bankruptcy.

The GRANDMA OFFER. This is where a lump sum offer is made to pay out all of your debts at a reduced amount.
EXAMPLE: You owe $30,000.00 on 4 different credit cards. For an easy example we will say you owe each one exactly $7,500.00.

Each creditor is offered $4,000.00 to cancel your debt. They all agree. This means that for $16,000.00 you have paid off $30,000.00 of debt. It’s a good solution if you can get the $16,000.00 from someone.

Why is it called the GRANDMA OFFER? Sometimes it’s a person’s grandma who doesn’t want them to become bankrupt so the grandma helps out. Not all granny’s are rich however!