We are concerned that people experiencing financial distress because of the economic impacts of COVID-19 may be easy targets for dodgy and unlawful advice.
Watch this video to learn more about dodgy insolvency advisors and common traps:
People who find themselves dealing with large debts for the first time as a result of COVID-19 may be tempted to turn to advisors who have a quick fix.
Untrustworthy advisors take advantage of people who are financially vulnerable and encourage them to do things which are illegal, unhelpful, damaging and not in their best interests.
Tell-tale signs of an untrustworthy advisor include:
- promising a large payment to get you out of bankruptcy
- recommending that you to get out of bankruptcy early by telling you to include false, exaggerated or fake debts in your bankruptcy application
- offering to organise your affairs so your property will be protected if and when you decide to go bankrupt
- advising that your bankruptcy or debt agreement will not affect your credit rating.
What can you do?
Seek free financial counselling from the National Debt Helpline
The National Debt Helpline offers free, independent and confidential services to discuss options for dealing with unmanageable debt.
Seek professional advice from a registered practitioner
You can seek professional advice to manage your debts by contacting a registered insolvency practitioner. They are called registered trustees or registered debt agreement administrators.
If you take shady advice, even unknowingly, you risk being convicted of criminal offences, and having a criminal record.