The greatest problem lies in the fact that the world has been flush with
cheap money that has been printed by various governments. While this money was available the banks and others gave into temptation and took advantage of the situation. The only way to prevent this recurring is to go onto the gold standard.

With the "big" banks, their ruthlessness in getting that "deal through the door" in order for their "monthly figures" to stack up and their bonuses - in getting a new customer on board - are safe, don't worry about the outcome as the potential customer has equity "a home" whereby if they default on their home mortgage their account will be passed over to a debt recovery agency for collection.

Process - Summons issued, judgment obtained, Writ on goods issued - if not enough received via writ on goods they then go for the "juggler" the home to be sold - your castle!

Let's go one step further whilst we are on this subject - credit card debt (the big lenders). We all have one.

If you haven't paid your account for approx 60 to 90 days your account will go to a debt recovery agency for collection. What happens then?

You will have a default recorded on your Credit Report....this stays as a listing for five years. So if you want credit from another institution - you won't get it.

If you don't make a reasonable arrangement for repayment with the collection agency they will issue a summons, obtain judgment then they have a choice of the following -
1. Garnishee your wages. What does this involve? The protected amount you will take home, after tax, being $267.00 per week (may be more now) all other funds will go to the collection agency in collection of your debt, this includes, overtime, annual leave, annual leave loading and bonuses - over and above the protected amount.

2. The collection agency can issue a Writ on Goods - anything in your home except anything in the bedroom (excluding fridge, washing machine etc) can be "marked" by the Sheriff for sale, this also includes boats, ski jets, garden furniture, tools, cars etc (as long as the car is unencumbered). If the debt is not satisfied at auction the collection agency will then go for your home - your castle.

continued.....

3. Issue an examination summons which will be heard before a Registrar (Civil Claims Court). This will involve the debtor submitting to court all tax returns etc for the last 3 years as to income and expenditure and responding to why he/she has not had the capacity to repay the debt.

The Registrar has full carriage of the matter and will determine what instalments will be paid.

If the debtor decides to do a "runner" the collection agency has twelve years in which to locate the debtor in New South Wales. If the collection agency can show proof to a Registrar (via a Notice of Motion) that constant relevant searches have been made in order to locate the debtor over the years for recovery of debt a Registrar would normally agree to the Notice of Motion filed in order to proceed to recover debt.

I hope this assists all.