Debt Counselling, Cars, Home Loans and Repossession
How secured debts such as vehicle finance and home loans can interact with debt counselling and enforcement.
Secured and unsecured debt are different
Vehicle finance and home loans are usually secured by an asset. That makes them different from a credit card or store account. Missing payments on secured agreements can carry asset risk, so timing and paperwork matter.
Can secured debts form part of debt counselling?
Secured debts can be considered in the broader debt-counselling assessment, but each agreement must be treated according to its facts, balance, arrears, contract terms and legal status.
When enforcement has already started
If a legal notice has already been received, get help quickly. The timing of notices, arrears and applications can affect what options are available for a specific agreement.
Voluntary surrender and repossession
These terms are not interchangeable. Do not hand over a vehicle or sign asset documents without understanding the shortfall, costs and credit implications.
Documents to review
- The finance agreement.
- Recent statements and arrears notices.
- Any section 129 or legal correspondence.
- Insurance and asset details.