Prison

It’s stressful to find out you may be going to prison. This page has steps you can take to financially prepare before you go to prison.

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Financial hardship and prison

Once you’re in prison it can be very difficult to manage and keep up to date with your financial obligations.

You won’t have access to the internet and contact with the outside world is limited to monitored phone calls and letters. It can be hard to access paperwork, such as identity documents or bank statements.

It’s really important to take some practical steps to manage your financial situation BEFORE you go to prison.

Some prisons have a visiting financial counsellor who may be able to help you. Once you’re in prison, check with prison staff to see if you have access to one and if so, make an appointment.

What to do BEFORE you go to prison

01

Figure out what income and assets you have (if any)

  • Do you have holiday pay owing or long service leave?
  • Are you earning income from investments? If so, how much?
  • Do you have savings?
  • Do you have assets? A house, car, motor bike etc? If so, how much are they worth? Can you or your family can sell any of them?
  • Are you likely to receive any prison payments or allowances above your basic amenities allowance?
  • Are you owed any refund from a tax return?

02

Figure out what your financial obligations are

Financial obligations are any regular payments or outstanding debts you must pay back. For example, regular payments for a mobile phone plan are a financial obligation.

Make a list of your financial obligations, how much you owe, what your regular payments are and the names and contact details of each provider or creditor. This makes it easier to work out what your options are, make decisions and figure out who you need to notify before you go to prison.

This list should include things like:

  • Child support obligations
  • All loans, including car, home, payday, consumer leases, buy now pay later
  • Credit card debt
  • Centrelink debt
  • Body Corporate fees
  • Rent or mortgage
  • Rates
  • Fines
  • Subscriptions – like Netflix, Foxtel and gym membership
  • Home phone, mobile and internet
  • Tax debt
  • Utilities – gas/water/electricity

You can use this checklist of financial obligations to make sure you’ve covered all your commitments, debts, and what you need to do.

If you’re not sure what credit and debt you already have, you can get a copy of your free credit report. More information about how to get your credit report is here. Your credit report may not show all of your debts. Obtaining your credit report may also mean debt collectors will contact you at your current address.

03

Plan how your financial obligations will be managed

  • What are your highest priority obligations?

A home loan may be a high priority debt. How will the home loan be paid while you’re in prison? More information about how to prioritise your debts is here.

  • Can you sell any of your assets to repay loans or debts?

Deciding to sell assets can be difficult, especially if it’s a house or car. More information about selling assets is here.

  • Will someone else be able to keep making repayments?

Caution: If someone else is making repayments on your behalf, keep in mind that if they don’t follow through you’re still liable and will wear the consequences. If you’re not certain everything will go as planned, you need to talk to your creditor and come to an arrangement (see step 4 below) and/or sell the asset.

  • Are there services or subscriptions you won’t need and can cancel?

For example: electricity, internet, Netflix, mobile data, etc.

  • Do you have direct debits you need to cancel?

More information about how to cancel a direct debit is here.

  • Do you need to appoint a trusted person as a power of attorney?

A power of attorney is a person you appoint to manage financial matters on your behalf when you’re in prison.

Click the links below for more information from the relevant agency in your state or territory:

04

Tell your creditors you’re going to prison

  • Explain to your creditor you will be going, or may go, to prison. Don’t be afraid to explain this to your creditor.
  • Tell your creditor you’ll be in financial hardship because you will have very little income in prison.
  • Work with your creditor to negotiate suitable repayment arrangements. This could be:
    • For short term sentences: a deferral of payments until you’re released from prison.
    • For joint debts (where the loan is with you and someone else): the other person could keep making repayments. If reduced repayments are required, tell the creditor.
    • For long term sentences: speak to a financial counsellor as these situations can be more complex.

05

If you can’t agree with your creditors, you can dispute it

If you can’t make an arrangement with your creditors that you think is fair and reasonable and will work for you, then you may be able to lodge a dispute with an external dispute resolution (EDR) scheme.

EDR schemes are free and independent services that can help you negotiate further and sort out your issue.

If your debt is from one of the following types of businesses, then there’s an EDR scheme that you can complain to:

  • Insurers, credit providers (banks, payday lenders, car loans, etc), finance brokers, financial advisers or superannuation funds
  • gas or electricity providers
  • telephone or internet providers

See our page about complaints and disputes for more information.

06

Speak to a free financial counsellor

If you’re feeling overwhelmed and need some help to deal with your financial hardship, you can speak with one of our financial counsellors.

Financial counsellors aren’t judgmental about your circumstances – they’re here to offer you free, confidential and independent advice and assistance.

To speak to a financial counsellor you can:

  • Call the National Debt Helpline on 1800 007 007 – open Weekdays from 9:30 am to 4:30 pm.
  • Use our live chat service by clicking the chat icon in the bottom right corner of your screen. Live chat is available 9:00 am to 8.00 pm weekdays. If you send a message outside these hours a financial counsellor will get back to you.
  • Make an appointment to see a financial counsellor in your local area – Find a local Financial Counsellor.
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You might feel overwhelmed, but you have options and there are steps you can take yourself. But if you feel you need a bit more guidance or need help quickly, simply call us.

CALL 1800 007 007