67 year old Sam*, lives off his pension. He doesn’t own any assets and suffers from Alzheimer’s disease.
Sam had been in a motor vehicle accident while having a fit from a lack of insulin, and caused damage to a building and some of its contents. The vehicle he was driving was uninsured and unregistered.
Sam received a number of letters from insurance companies demanding payment for the damage, which was in excess of $200,000. He also had other significant debts to Telstra and Optus.
Sam had been ignoring the letters demanding payment from the insurance company, and it had got to the point where legal proceedings would be commenced against him if he didn’t start paying off the debt.
Sam wanted to make an application for bankruptcy as he could not make the payment. Goondiwindi Community Legal Centre advised Sam of the risks of doing this and suggested that he should contact the insurance company, Optus and Telstra to explain his circumstances, so that they can negotiate a payment plan and minimise the impact on his overall wellbeing.
Because of the advice of the Centre, Sam was able to find alternative ways to try and manage his financial affairs to avoid bankruptcy and reduce the financial burden.
*Not their real name