Frequently Asked Questions

Managing Debt Collectors
I’m a few weeks behind on my home loan. Can my lender take my home?

A Lender usually begins solicitor and recovery (eviction) action around the 3rd month of a home loan arrears, however there is a collection process a lender will implement to recover unpaid mortgage payments, which begins earlier. These collection processes incur costs which will usually be past on to you adding to your arrears. Being a few weeks behind on your home loan doesn’t mean the bank will take your home, however the added recovery and legal fees can add up to as much as the actual arrears. In most cases the lender will require the payments to be made up under a defined arrangement on top of your normal home loan payments.  If you’re $4000 in arrears and your normal payment is $2000, a normal payment might be:

$2000 normal home loan payment
+ $800 additional payment per month
= $2800 per month over 5 months.

Loan Saver Network can offer effective solutions to improve your debt situation.

Is there finance to pay my home loan arrears only?

There aren’t any personal loans that will specifically pay home loan arrears. A mortgage refinance is required unless an formalised arrangement can be made with the home loan lender.

Can i avoid losing my home?

In most cases, yes you can avoid losing your home. There are a number of option which depend on the lender and at which stage of the lenders recovery process your arrears is at. Option may include:

  • Refinancing to another lender
  • Negotiation with your lender
  • Obtain funds from family & friends

Arrears doesn’t go away, lender recovery doesn’t stop, however slow action and inconsistent communication from a lender  can lead to false sense of security until an eviction notice, or court notice is received. The best way to avoid losing your home is to act now! Each day, or week can make the difference to a successful loan settlement.  Loan Saver Network is effective in helping resolve Home Loan Arrears.

Can i reduce my tax debt?

In some circumstances – Tax debt may be reduced depending on the situation. If you have a  Tax debt, general interest charge (GIC)  is added to what you owe at a specified interest rate. You can request a remission of some or all of the GIC to be remitted, depending on your individual circumstances. The ATO has guidelines to follow in determining if the GIC fits their policy for remission. We can guide you through this process and help you obtain suitable finance for your tax debt.

What happens if i don’t pay back my tax debt?

If you don’t pay your Tax debt, or enter an arrangement to pay, the ATO will begin recovery action. The recovery process is as follows:

  • Letters of demand
  • Referral to debt collection
  • Court proceedings
  • Creditor Petition / Bankruptcy

General Interest Charge will accrue from the due date until the amount is fully paid.  Legal action can be implemented and an external collection agency may also be involved to collect outstanding tax. Finally the ATO can bankrupt you to obtain payment.

What is a Judgement and how does it affect me?

A judgement on your credit file is a court notation on your credit file. When a court case for a debt rules against you the court updates your credit file to reflect the outcome. A court listing/judgement remains on your credit file for 7 years.

A court judgement on your file can have an effect on obtaining further credit. There are lenders who may assist with home loans even when judgements are outstanding.

What are the pros and cons of debt consolidation?


  • Can reduce your outgoing payments.
  • Simplify payments by reducing the task load of managing payments to a large number of debts


  • Can extend the term of your debt to the term of your home loan
  • There are usually costs associated to a debt consolidation or other loans (these can vary from lender to lender)
There are pro’s & con’s to most loan facilities. Understanding the limitations and features of a facility can assist in determining the most suitable solution. Loan Saver can assist and work with you to determine the most suitable solution and lender for your consolidation needs.

I’ve got a credit default. How does this affect me?

There are limitations to the finance available to you when you have credit defaults. You may have trouble setting up gas, electricity, or phone accounts along with obtaining other forms of credit. Some lenders won’t provide you finance, others may provide finance however offer limited facilities, higher interest rates and or fees. There are sufficient lenders available to offer a range of products and solutions. A qualified assessment can assist in determining the most competitive and suitable lender/solution.

What is a Mortgage reposession?

Mortgage repossession is where a lender applies through the courts to recover unpaid loans/debt through the sale of the asset. The title of the real estate would have a mortgage of land lodged against the title. This mortgage of land would have been agreed upon by the borrower(s) in the loan agreement & lodged at settlement of the mortgage.

Mortgage repossession is a serious predicament where success solutions are best achieved when action is taken immediately.

What is a Debt Agreement?

A debt agreement is an abbreviated term for “Part 9 Debt Agreement”. See Part 9 below.

How can Debt Consolidation help me?

See pro’s & con’s above – see below an example of a debt consolidation homeloan:

Loan TypeAmount OwedInterest RateRepayment
Home Loan$2200005.3%$1300 monthly
Credit Card 1$850019.99%$270 monthly
Credit Card 2$1550015%$470 monthly
Personal Loan$2200012.99%$480 monthly
Totals$266000 $2520 monthly

Consolidating the above debts into a single home loan of 5.5% would see payments of:

New Home Loan Payment: $1510.32
Saving: $1010.32 each month

What is a Part 9?

A part 9 debt agreement is an alternative to bankruptcy; it assists debtors with unmanageable debt. This releases most debts once all payments and obligations are met under the agreement. There are certain requirements for a Part 9 such as:

  • Max $83647 in unsecured debts and approx. the same maximum income.
  • There are minimum and maximum income thresholds to qualify under a part 9 which is determined by the number of people and children in your household.

it is advisable to speak to an expert in debt agreements. We are independent finance brokers hence you can be guaranteed of unbiased advice. We look for options to avoid a part 9 debt agreement where possible, however we can point you in the right direction.


What is Bankruptcy?

If you are unable to pay your debts and are not able to come to suitable arrangements with your creditors you can voluntarily become bankrupt or a creditor may take action and by order of the court, declare you bankrupt. This process provides protection to people who are unable to repay their debts and cannot reach an agreement with their creditors. Bankruptcy generally lasts for a period of 3 years but can be extended, depending on the circumstances. A bankruptcy will appear on your credit records for a period of 7 years and will be obtained by looking at your credit file by any creditor you request finance from.

Under the bankruptcy act you are not able to obtain any finance while under bankruptcy. You are not permitted to be a director of a company. You can be self employed and run a business under bankruptcy so long as you meet the required guidelines. It’s best to discuss the specifics of a bankruptcy before entering unto one to ensure it meets your intended outcomes.