What is the story with debt? Do you really have to repay all debt that is being claimed from you by lenders and or credit providers? Are there times and reasons when certain debt does not need to be repaid? How can one really know their genuine rights and options?
You have a right to be treated fairly
Irrespective of how much money you owe and to whom – you have a right to be treated fairly. This means that you deserve the peace of mind knowing tht you are not going to be harassed by debt collectors nor made to feel uncomfortable and like you have no say or voice in the matter of alleged debts.
You have a right to dispute the debt
If you disagree about the amount of the debt, the terms of the debt or any other matter relating to your debt contract you have a right to dispute the debt allegations. If a creditor has taken the matter to court, you will need to mount a defence outlining your argument.
Otherwise you may choose to contact COSL or your Ombudsman to complain about the treatment you are receiving at the hands of the credit provider. You can also lodge a complaint with The Victorian Civil and Administrative Tribunal (VCAT) or the alternative bodies available in other states of Australia.
Your Centrelink/Workcover income is protected
If your only income is Centrelink or payments from Workcover and you are unable to afford debt repayment, you will not be forced to repay even if a judgement is made against you. This will also depend on whether you own any assets worth money that could be forced into a sale such as a home or an expensive car/boat/motorcycle. If there is not or minimum equity in your assets then there is no way a creditor will be able to collect their debt.
Debt is old and unsecured
A statute of barred debt applies to old debt which is over 6 years old. What that means is that for unsecured debt that you have not been asked to make payments on for over 6 years, you can not be forced to repay. The same is applicble to secured debt like a mortgage which has been left unpaid and dormant for over 15 years.
Debt can push you into bankruptcy
Keep in mind that if you can not afford to repay the debt then there is no one who will be able to force a repayment. Ultimately if you are not working or on a very low income, depending on the size of the debt that you are facing you may need to consider a reduced repayment arrangement or possibly even bankruptcy.