Case study: Julia

Temporary relief from enforcement action by a creditor

Julia is a small business owner who runs a café. The café has been hit hard by the economic impact of the coronavirus. Until recently, Julia had always been able to make on-time payments to her creditors, like her bank and suppliers.

Like most cafés across Australia, Julia’s has only been able to sell takeaway coffee and food. Her revenue has more than halved and she has been unable to pay her creditors.

Most of Julia’s creditors have been supportive and negotiated new payment terms with her. However, one creditor didn’t and instead obtained a court judgment against her.

The court’s judgment allows a creditor to apply for enforcement processes for the judgment debt, which could mean Julia’s assets are seized and sold to pay off her debts.

Julia contacted the National Debt Helpline for free financial counselling.

After speaking with the financial counsellor, Julia decided to apply for Temporary Debt Protection. Once the application was accepted, this stopped the creditor from enforcing the judgment – meaning her assets weren’t seized – for a period of 21 days.

Julia used the extra time during the temporary debt protection period to restructure her finances and enter an affordable repayment plan with the creditor.

Important information

AFSA encourages anyone considering entering into Temporary Debt Protection to first seek advice from a free financial counsellor by calling the National Debt Helpline on 1800 007 007.

*These case studies do not constitute legal or financial advice. You should consider whether the options referred to in the case studies are appropriate for you, and seek advice if necessary, before taking any action.