Bobby's* Debts had accumulated after a string of unfortunate events put her a long way behind financially. Bobby had a relationship break up several years ago and was left with a lot of Debt. She has a disabled child and is now caring for her, on her own. She has only one income and needs help with her daughter and her child care costs are expensive. Car costs and alterations have been expensive also and the car needed repairs at the worst possible time. She needs to keep the existing family home as it set up perfectly for her daughter and selling the home would not clear her debts anyway. There isn't enough equity to refinance her debt into her home loan. She does earn good money but the unsecured debts are now around $170,000 and there is one creditors who has been quite aggressive and won't come to terms or help.
Because the debt is $170,000 it is over the threshold that allows Bobby to apply for a part IX Debt Agreement. Technically her income is over the threshold as well. So we have to look at other options. In a Personal Insolvency arrangement or Part X there is no limitations on income or Debt levels. Because the Creditor who is being extremely unwilling to help resolve the situation is less than 25% of the total Debt value, they will have to comply with the offer if the rest of the creditors agree.
In this case Bobby offered a payment plan over 3 years that paid back a reasonable percentage of the Debt. It was put with a Part X trustee who will administer the Debt and handle the negotiation. The offer was accepted by the majority of creditors.
Bobby's home is now safe and she can now afford to care properly for her daughter and get back on her feet.