Loan Default Legal Advice:

With the advances and developments in the finance industry, credit has become more readily available and accessible. Any business operates with equity and debt and it is important to manage and control your debt obligations. There are a myriad of debts that any individual may have such as a mortgage, credit card and loan facility, and it is important to manage these debts so as to not fall into default. Should you face any difficulty in meeting your debt obligations there are a number of potential avenues that a qualified commercial lawyer can discuss with you to ensure that you do not face recovery actions from your creditors.  This may lead to litigation action being commenced against you and could result in your own personal bankruptcy.  If you run a business, your business could face receivership, administration or liquidation and there may be various penalties if you are a director of such a company.

With the many substantial growth and advances in the finance sector in the past hundred years, such as securitisation, growth of the derivatives market, hedge funds, private equity and short term money markets, it is no surprise that credit has become more readily available. This availability of credit has allowed greater business expansion, multinational corporations to dominate and for a globalised finance sector and economy to emerge. However, this also means that loan agreements can be more complex and sophisticated and it makes good business sense to obtain advice from a commercial lawyer to ensure that you fully understand the contract, your rights and obligations and the steps you could take should disputes arise.

The ease of borrowing money and the complexities in most loan agreements means that legal advice from an Asset Protection & Trusts Lawyer who may have regard to your circumstances may be hugely beneficial. You may need legal and financial advice to ensure that your repayment obligations are met; that you understand all the terms and conditions; that you appropriately use your redraw facility or offset account and that you take advantage of all tax deductions available. In addition, before entering a loan agreement it may be useful to retain an Asset Protection & Trusts Lawyer to assist in negotiating the terms, considering the tax legislation and considering your asset protection goals. In this way you may tailor your loan commitments in accordance with the level of credit and financial risk that you can service and minimise the chance that you will default on your loan.

Debt is a fact of life and unless you have the equity to purchase all your assets and run your business, it will be necessary to take out a loan. However, there are various debt management strategies that it may be important for you to understand so that you can effectively manage your debt. This includes debt consolidation, debt recycling, acquiring ‘efficient debt’ rather than ‘inefficient debt’, ensuring that your debt is managed in a tax effective method and structuring your repayments in a manner that is aligned with your financial goals. Having an experienced Asset Protection & Trusts solicitor who may be able to consider your circumstances and any of your debt obligations may greatly assist you in optimising your debt management.

If you need further legal and financial advice in the area of loan defaults, you may book an appointment with us by telephone on (02) 9233 4048 or by email at info@navado.com.au.  

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.