Submission to the Attorney-General’s Department Personal Insolvency Discussion Paper
FCVic has made a submission to the Attorney-General’s Department Personal Insolvency Discussion Paper.
Victorian financial counsellors support many debtors through all stages on the bankruptcy and debt agreement process. They have experience and knowledge of both the advantages and issues with the system, particularly from the perspective of vulnerable debtors who have sought financial counselling assistance at a very stressful time.
In preparing this submission, FCVic has consulted with the members of its Bankruptcy Working Group, which comprises practitioners with a high level of experience in the subject matters raised in the discussion paper. FCVic believes that there is a place for bankruptcies and debt agreements that are reasonable, fair and equitable to debtors. However, financial counsellors see many cases where the processes are used by some creditors or debt administration businesses to either unfairly pressure debtors or as a source of fees for administrators.