Even savvy investors encounter investments that don't go as planned. Following the collapse of agricultural managed investment schemes like those previously operated by Great Southern Group and Gunns Group, many people are coming to terms with losing their major investments while still being liable to pay the loans taken out to invest in the schemes.
With your investments essentially worthless and loans due, what can you do?
The case in detail
With investments essentially worthless and loans due, what can you do?
Following the legal decision on Great Southern in 2014, about 2,000 people who borrowed $23.55 million from Bendigo Bank to invest in their schemes have had to face up to loans that were deemed "valid and enforceable".
The receivers of Gunns Finance, and Bendigo Bank in respect of Great Southern loans, are currently pursuing legal recovery for payment of the outstanding loan balances owed by investors. Given the time that has passed since the Courts confirmed the investors' loans were due, action is now being taken to bankrupt people who have not repaid their loans.
How do you manage this debt?
The Cactus Consulting personal insolvency team helped people being chased for payment of their investment loans. These people are often struggling to manage the outstanding loans and as a result may also have outstanding credit cards, personal loans and other unmanageable debts which can lead to personal insolvency and bankruptcy.
It's important to note that the Gunns Finance Receivers and Bendigo Bank are open to negotiating on a confidential basis with investors who may require payment instalment arrangements or discounted terms that investors can afford so they can get on with their lives.
By engaging us on an informal basis, we can help you by preparing and submitting a proposal for a payment arrangement or settlement offer, together with our assessment of your personal financial position and ability to meet the payment proposal. If required, we can also enter into negotiations on your behalf.
We can also advise you on alternatives to bankruptcy, including informal arrangements and personal insolvency agreements, which may be appropriate to deal with your debts in circumstances where you have other debts you cannot pay.
Ignoring unmanageable debt isn't going to solve any problems – it's important to address any threat of bankruptcy with a sound plan and professional advice on your side.
While this level of debt can be cause for personal insolvency, it doesn't necessarily have to be. Get in touch with the Cactus Consulting personal insolvency team to understand your options and the solutions available to overcome your investment loans and other debts to avoid bankruptcy and save the family home.