The no asset procedure is similar to bankruptcy and could be described as "bankruptcy lite". There are differences and one key difference is that under the no asset procedure, your student loan debts are NOT wiped. Student loan debts are wiped if you go through bankruptcy. If you are concerned about student loan debts, then the no asset procedure is not for you. Please ask us if you have any questions.
Click here for the article on the student loan detention threat: http://nz.news.yahoo.com/a/-/top-stories/17372591/detention-threat-enough-for-student-loan-runaways/
There is more news today about the government's drive to pursue student loan debtors. It will use private detectives and debt collectors to pursue 10,000 student loan debtors in Australia.
In an ideal world everyone would repay their student loan debt, however, sometimes people find that they just don't have the money to repay the debt and/or it has spiraled out of control, once penalties and interest are added, to such an extent that even someone on a good income has no hope of getting the debt under control. In these situations it is better for everyone that an alternative is sought - as soon as possible. We can help with negotiations, or with evaluating bankruptcy or other options, so that the best solution is found for you so that.you can get on with your life.
Given that the government reports that it receives $12 for every $1 spent on pursuing student loan debts don't expect its efforts to stop any time soon.