Have You Caught the Financial Virus from The Coronavirus?
The good news is that there are solutions available for the Financial Virus.
The coronavirus is very giving, it is not just causing horrific medical problems – it is also leaving a trail of severe financial problems. We call this the Financial Virus.
The symptoms of the Financial Virus are;
- always feeling stressed and having money worries on the back of your mind,
- feeling isolated,
- constant worry about how you will pay your bills,
- worry that you will lose your house and possessions that you have
- worked hard to accumulate,
- shock that you are experiencing financial pressures
The severity of the Financial Virus that you experience will depend on your circumstances and can be dictated by a multitude of factors, many of which will be out of your control. For example, the industry you work in, whether your financial problems are time sensitive – the longer the shut down the worse it is for you, the quantum of the recurring costs of running your business, how much it is going to cost to restart your business and whether your business will trade below its breakeven point for a while once you start to get it trading again.
If the dose of the Financial Virus you receive is low you will be able to get past the Financial Virus by reorganising your finances with your lenders. The banks and most lenders are fully across the financial distress being experienced in the community and will delay payments on your loans to give you time. We recommend that you apply to your lender for a moratorium period where you are not required to pay the normal monthly payments on your loan. Ultimately, you will still have to pay the money and interest but your cash flow pressure will be relieved and once the storm has passed your lender would be expected to be accommodating for the payment arrears to be repaid in the future. For example, they may extend the term of your loan or increase your monthly payments. It is important that you talk to your lender about this.
If the dose of the Financial Virus you have received is large, you may find that the financial damage is so severe that you can see no way out. If this is your situation, there are solutions available to put these problems behind you and facilitate a fresh start for you and your family.
As an individual, you can select the protection of bankruptcy. This will stop you owing money to your creditors and protect your wages to make sure you have money to live. Bankruptcy provides a fresh start. It protects your furniture and household effects, transport, tools of trade, superannuation and it may even be possible for you to stay living in your home! What’s more, you have the option of getting out of bankruptcy at any time. All you need to do is have your creditors agree to a commercially viable offer (a better result for them than bankruptcy) and your bankruptcy is annulled. Complete this agreement and the creditors are gone! If you do nothing, you will be discharged from bankruptcy after 3 years and one day. The liabilities caught by your bankruptcy do not return – they are gone forever.
For information on how bankruptcy may assist you to have a fresh start, call our confidential bankruptcy hotline on 1300 764 197 and ask for Slade or email your questions to email@example.com