I Have Just Separated From My Partner What Happens To All Our Debt?
Similar to any assets you may have, your matrimonial debt becomes part of your property settlement. Unfortunately for many couples their debt is often more than their assets and it becomes a matter of working out what is the best way forward for the financial security of all parties.
Am I Financially Responsible For My Ex's Debts?
In general you are not responsible for anybody else's debt even if you were married or in a relationship with them. You may however be liable if you were a joint borrower or guarantor on a loan contract. You may also be liable for any business debt if you were/are a director or a partner in a family business or partnership.
I Am Struggling To Make Ends Meet What Can I Do?
Firstly, well done for acknowledging you need help! Ignoring your money problems won't make them go away and the longer you leave it, the worse it will get. The first step is to get an accurate picture of what you owe and your financial situation by writing down all your income and expenses. There are many great websites that contain useful information about managing your debt
Free financial counselling services are also available in every state to help people who are in financial difficulty. They can also help you to manage a crisis situation and help you to plan for the future.
To find a free financial counsellor in your area click here.
How Can A Financial Counsellor Help Me?
A financial counsellor can help you:
- Organise your financial information
- Design a personal budget
- Suggest ways to change and improve your financial situation
- Assess your eligibility for government assistance
- Negotiate with your creditors
- Explain debt recovery procedures, bankruptcy and other alternatives
- Refer you to other services, for example, gambling, family support, personal counselling or community legal aid
My Former Partner Is Still Creating More Debt, What Should I Do?
If possible talk to your former partner about the situation. Inform them that you need to protect your family's financial position and will be closing any joint accounts, credit cards and any other account where you are a signatory and jointly responsible for paying the account.
It may not be possible to close your credit card accounts (as you will need to pay off the balance) but you can request that the lender provide no more credit to the account.
What Can I Do I'm Afraid I Can't Pay My Mortgage Or Rent?
The first thing to do is contact your mortgage lender or your landlord. If you do this by phone, make sure that you record the details of the conversation including the name of the person you spoke to and then write to confirm what you have discussed.
When the lender or landlord is aware of the details of your situation, they should be more willing to try and sort out some temporary arrangement with you. Contact
Centrelink immediately to find out whether you are entitled to financial assistance including rent assistance or crisis payments.
Can Centrelink Help?
Centrelink provides a number of different services that can help you if you are struggling financially.
1. Financial Information Services (FIS)
This is a free service that is available to anyone i.e. you don't need to be a Centrelink client. This service offers free, independent financial information and advice.
A number of services are offered including:
- Meeting with a FIS Officer to discuss your financial situation and the options available to you
- Financial and lifestyle seminars and workshops
- Financial fact sheets and information.
To find out more about
FIS click here or call 13 23 00.
2. Personal/Family Counselling Service
This service is a free service available to all Centrelink customers. To access Centrelink's counselling services call 13 10 21. You have the choice of speaking directly to a social worker over the phone or making an appointment to see someone in person at your local Centrelink centre.
Centrelink can also give you information about whether you are entitled to financial assistance including rent assistance, crisis payments or other social security payments.
Visit
Centrelink's website to find out more or call 13 23 00.
What Other Organisations Are Available To Help?
There a number of organisations throughout Australia that can help you with financial assistance, information and advice.
Click here to search our Directory to find services near you.
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