Bankruptcy 'not necessarily quick and easy'

Thursday 14 January 2010

Article by Mozo

Australians should not assume that bankruptcy is a quick and easy means of getting out of credit card debt, an expert has said.

Christian Oey, specialist debt negotiator at Bella Vista, told the Hills Shire Times that while many solicitors, financial planners and accountants advise their clients to go bankrupt in order to deal with their debt issues, many people do not fully understand all the alternatives, ramifications and stigmas of bankruptcy.

Mr Oey added that while part IX debt agreements are popular among Aussies, clients are often not fully informed that it is actually an act of bankruptcy.

He said that the first step for anyone worried about their credit card bills is to simply stop spending before seeking a range of objective advice. Mr Oey said his average client is $120,000 in debt.

Writing for the Sunshine Coast Daily, Paul Clitheroe, director of financial planning firm ipac, said that high credit card bills are encouraging Aussies to compare debit cards before switching to this safer alternative.

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