Resource ● Last updated 31 October 2023 ● 5 min read
Financial hardship after a disaster (NSW)
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What is this resource?
This resource is designed to support community workers and volunteers to connect people in disaster affected communities with appropriate services. It will help you identify when someone you’re helping has a financial legal problem and where to refer them for appropriate legal support.
Financial hardship and disasters
People affected by natural disasters can experience both short term and long-term financial difficulties, ranging from lost credit cards and problems accessing cash through to being unable to make loan repayments.
A persons’ bank or credit provider must consider what’s happened to them if they have experienced a disaster. They can speak to their hardship department, or they can talk to a financial counsellor through the National Debt Helpline, on 1800 007 007.
If the lender won’t help, you can refer your client to a free service that can help with their legal options.
What is financial hardship?
Financial hardship is when a person is having trouble repaying a loan or debt.
Your client may be having trouble:
- making mortgage repayments
- making personal loan payments
- paying rent
- making credit card payments
- meeting business obligations
- making business loan repayments
- paying utility bills
- paying for temporary accommodation
Financial hardship after a disaster may be caused by:
- loss of job or reduced shifts
- being unable to physically access money
- injury or illness
- facing unexpected expenses
How can a financial counsellor help?
Financial counsellors are skilled professionals. They will listen to your client’s problems and help them with things like:
- bills or fines they are struggling to pay
- being harassed by debt collectors
- gas, electricity or phone disconnection
- being evicted from their home
- navigating insurance claims
- tax debts
Financial counselling is a free and confidential service.
To find a financial counsellor near your client visit Financial counselling – Moneysmart.gov.au or call the National Debt Helpline, on 1800 007 007.
How can a legal service help?
Many financial issues have legal solutions.
Some of the ways legal services can help include by:
- Giving someone legal advice about their options
- Negotiating with someone’s bank or creditor on their behalf
- Helping someone appeal an unsuccessful complaint to a financial body, such as the Australian Financial Complaints Authority (AFCA).
Tips and General Information
If someone that you are helping is facing financial hardship after a disaster, their first step should be to contact their financial services provider and explain what is happening.
Most financial service providers have dedicated financial hardship teams. When your client calls their service provider, they should ask to speak with this team.
If their financial service provider will not help them, you can refer your client to a financial counsellor and lawyer.
Financial support is available for people who have been directly affected by natural disasters in declared disaster areas.
For more information, see Financial support after a natural disaster | Service NSW
If your client is in crisis and is struggling to pay for essentials, there are services to help with food, bills and housing.
For more information see Urgent help with money – Moneysmart.gov.au.
More online resources
Financial Rights Legal Centre – Self-Help Centre
This website is designed to help people in New South Wales understand their financial rights and take steps to sort out debt or disputes about credit, banking and insurance.
It includes fact-sheets, sample letters, multilingual resources and more.
Moneysmart
This website contains practical advice on how to manage debt and financial hardship.
NSW Legal Assistance Forum
This website compiles plain language law resources for people impacted by disaster. It includes:
- insurance and employment
- financial assistance
- renting and tenancy
- personal documents
- and more
Plain language law resources for victims of natural disasters (nlaf.org.au)
Justice Connect
Justice Connect has created plain language resources for people in New South Wales who are struggling to pay their mortgage or who have received a bankruptcy notice. See:
Refer your client for free legal help
Financial Rights Legal Centre
Financial Rights Legal Centre is a specialist legal centre which provides advice for anyone in financial distress.
Disaster Response Legal Service NSW
If your client has been affected by a bushfire, storm or flood, the Disaster Response Legal Service can help with everyday legal problems including insurance claims and disputes, financial hardship, tenancy and Centrelink. Call them on 1900 908 529 between 9am and 5pm Monday to Friday or visit their ‘How We Can Help’ page for more information.
Justice Connect
Justice Connect can provide free legal advice and ongoing representation in certain matters to eligible individuals, small business owners and primary producers affected by disasters like floods, bushfires, cyclones and other extreme weather events. We may be able to match your client with free legal assistance to help with disputes or to assist them better understand their legal rights and obligations.
Refer someone to Justice Connect: https://justiceconnect.org.au/refer/
This resource was last updated on 31 October 2023. This is legal information only and does not constitute legal advice. You should always contact a lawyer for advice specific to your situation. Please view our disclaimer for more information.
More disaster resources for frontline workers
Disaster Legal Support Resource Hub
Our resources are designed to help community legal workers find high-quality legal information quickly, and take steps to resolve their clients’ legal problems and refer their clients for pro bono legal support before their problems escalate.
