Life Without Debt Ltd (in formation)
Composite / illustrative case studies · no real beneficiary is depicted
Case Studies Bank
Three anonymised composites showing how a LWD case unfolds
Case Studies Bank
Three anonymised composite case studies illustrating how a Life Without Debt case is expected to unfold from referral through to closure. Each composite is drawn from published Australian hardship-industry research, financial-counsellor casebooks, and palliative-care service reports; no individual beneficiary is depicted, and no facts are drawn from any confidential source.
DRAFT v1.0 · Illustrative only · Composite scenarios · No real beneficiary is depicted
Composite & illustrative — no real beneficiary
Every case study on this page is a composite constructed from publicly-reported patterns in Australian consumer-credit hardship (ASIC RG 96 industry data, National Debt Helpline reports, Consumer Action Law Centre case studies, published palliative-care research). Names, ages, cities, employers, creditor names, and dollar amounts are illustrative only. No identifying detail of any actual person is used. Once the Company has operated for a period, this Bank will be replaced with de-identified real cases — each with signed beneficiary consent obtained under the Privacy Policy.
How each case is structured
Each case follows the standard LWD flow: Referral → Eligibility → Plan → Execution → Closure. Where a decision engages a specific clause, policy, or statute, that citation is given in brackets. Where a Board-level authority was required (e.g. direct payoff > $5,000), the DAS clause is noted.
Case 1 · "Margaret" · 62 · Regional NSW · Stage IV pancreatic cancer
Referral pathway: hospital social worker → regional financial counsellor → LWD
| Situation on referral | Margaret is a 62-year-old former hospitality worker in a regional NSW town. Diagnosed with Stage IV pancreatic cancer with a specialist-certified life expectancy of 6–9 months. She rents her home, lives with her adult daughter (her carer), and has been unable to work for 5 months. She has: (a) a $14,200 credit-card balance (major bank); (b) a $6,800 personal loan (second-tier lender); (c) two small buy-now-pay-later balances totalling $1,300; (d) $2,800 in unpaid electricity and gas; (e) $1,900 in unpaid rent. |
|---|---|
| Superannuation | $47,000 balance in a retail super fund. Not yet applied for early release on terminal-medical-condition grounds. |
| Life insurance | Held via super. Not yet claimed under the "terminal illness" benefit provisions (typical 12-month life-expectancy trigger; Margaret's specialist-certified 6–9 months qualifies). |
Case flow
1 · Referral
Hospital social worker refers Margaret to LWD via a regional financial counsellor (partner agency).2 · Eligibility
Two medical certifications on file (oncologist + GP). Meets terminal-illness definition (SIS Reg 6.01A). Financial-position evidence collected.3 · Plan
BLO + CEO dual sign-off. Mixed relief: negotiation + direct-relief for essentials + one direct payoff + advocacy for super/insurance.4 · Execute
Financial counsellor negotiates with creditors; LWD pays essentials; advocacy letters issue to super fund and insurer.Intervention detail & outcomes
| Debt / issue | LWD intervention | Cost to LWD | Outcome |
|---|---|---|---|
| Major-bank credit card ($14,200) | Partner financial counsellor negotiates hardship variation citing NCC ss.72–75 + Banking Code 2025 ¶¶52–54 + specialist certificate. | $0 direct payment | Balance waived on compassionate grounds by the bank. Standard outcome for a specialist-certified terminal case with this bank. Time: 4 weeks. |
| Second-tier personal loan ($6,800) | Negotiator escalates to lender's internal hardship team. Second-tier lender initially offers only a 6-month payment freeze. | $3,400 direct payoff (settlement) | Board-approved settlement at 50% under Direct Relief Policy §4 (co-signed CEO + Director). Lender releases balance. Time: 6 weeks. |
| Two BNPL balances ($1,300) | Direct payoff (below $1,500 cap; CEO single-signatory under DAS §5.4). | $1,300 | Both accounts closed. Time: 2 days. |
| Unpaid utilities ($2,800) | Direct relief payment straight to providers. | $2,800 | Reconnection risk eliminated. Time: 5 days. |
| Unpaid rent ($1,900) | Direct relief payment to landlord's agent. | $1,900 | Tenancy protected. Time: 3 days. |
| Superannuation (early release) | Advocacy letter to super fund citing terminal-medical-condition ground; medical evidence attached. | $0 | Full $47,000 released to Margaret within 14 days. |
| Life insurance (terminal illness benefit) | Advocacy letter to insurer citing 12-month life-expectancy trigger and specialist certificate. | $0 | Claim accepted. Benefit paid to Margaret (amount out of scope of LWD). |
Summary
| Total LWD direct expenditure | $9,400 (within per-beneficiary aggregate cap of $15,000/12 months, Direct Relief Policy §5) |
|---|---|
| Beneficiary-side outcome | $23,000 in creditor debt cleared; $47,000 super released; unquantified insurance benefit; tenancy and utilities secured; 7 weeks total case duration. |
| Authorities engaged | NCC ss.72–75; Banking Code 2025 ¶¶52–54; SIS Reg 6.01A; DAS §5.4; Direct Relief Policy §§3, 4, 5. |
Case 2 · "David" · 48 · Melbourne · Motor neurone disease
Referral pathway: MND Victoria → palliative care team → LWD
| Situation on referral | David is a 48-year-old former electrician diagnosed with MND. Life expectancy specialist-certified as 12–18 months with rapid physical decline. He owns his home (mortgaged, $190,000 outstanding, ~$120,000 equity), has a partner and two children (17 and 14). Household income has dropped to Centrelink Disability Support Pension only. He has: (a) $8,500 credit-card debt; (b) $22,000 remaining on a car loan; (c) $4,200 in accumulated medical co-payments and equipment costs. |
|---|---|
| Superannuation | $260,000 balance in an industry fund. Not yet applied for early release. |
| Life insurance | Held via super, plus a standalone term-life policy with a "terminal illness" benefit (24-month trigger). Not yet claimed. |
| TPD | Available via super but not yet claimed. |
Case flow
1 · Referral
MND Victoria → palliative team → LWD. Referral packet includes clinical certificates and preliminary financial statement.2 · Eligibility
Meets terminal-illness definition. Mortgage complicates the picture: the family wants to remain in the home.3 · Plan
Advocacy-heavy plan — the LWD contribution is smaller than Case 1 because the super and insurance leverage is much larger.4 · Execute
Financial counsellor engages mortgagor; solicitor briefs the TPD/terminal-illness claims; LWD provides bridge relief while claims resolve.Intervention detail & outcomes
| Debt / issue | LWD intervention | Cost to LWD | Outcome |
|---|---|---|---|
| Mortgage ($190,000) | Partner financial counsellor negotiates a 12-month interest-only "hardship variation" under NCC s.72; provides medical evidence and family budget. | $0 | Interest-only agreed. Foreclosure risk eliminated. Family remains in home. Reviewed at 12 months. |
| Credit card ($8,500) | Negotiation with issuer. Terminal-illness certificate provided. | $0 (waiver) | Balance waived. Time: 3 weeks. |
| Car loan ($22,000) | Complex — car is essential for family. Negotiator secures a 6-month payment pause and interest freeze while insurance claims resolve. | $0 | Payment pause secured; loan continues after insurance payout. |
| Medical/equipment costs ($4,200) | Direct relief to specific providers. | $4,200 | Immediate relief. Time: 1 week. |
| Bridging relief for household essentials (3 months) | Direct relief while super and insurance process. $1,000/month. | $3,000 | Family avoids drawing on emergency credit. Time: 3 months. |
| Super early release | Advocacy letter to industry fund with terminal-medical-condition evidence. | $0 | Released within 3 weeks. |
| Life insurance terminal-illness benefit (standalone policy) | Solicitor drafts claim letter on LWD's advocacy budget. Insurer initially disputes 24-month trigger; solicitor rebuts with specialist evidence. | $1,200 (solicitor time paid by LWD as advocacy) | Claim paid within 8 weeks. |
| TPD | TPD claim lodged in parallel with terminal-illness claim. | $0 | TPD accepted after 4 months. |
Summary
| Total LWD direct expenditure | $8,400 |
|---|---|
| Beneficiary-side outcome | $30,500 in creditor debt neutralised or waived; mortgage pause secured; ~$260,000 in super released; standalone insurance and TPD claims paid; family remains in home through end of life. |
| Authorities engaged | NCC s.72; Banking Code 2025 ¶¶132–145; SIS Reg 6.01A; life-insurance policy terms (24-month trigger); DAS §5.4; Direct Relief Policy §§3, 4, 5. |
Case 3 · "Kwame" · 71 · Adelaide · Late-stage prostate cancer
Referral pathway: community legal centre → LWD (post-mortem support to family)
| Situation on referral | Kwame was a 71-year-old retiree diagnosed with late-stage prostate cancer 4 months before his death. He passed away before formally engaging with LWD; his adult son referred the estate to LWD via a community legal centre. The estate is small ($9,000 in savings, $3,200 in a super remainder). Debts at death: (a) $4,600 credit-card balance; (b) $1,800 personal loan; (c) $6,800 unpaid funeral director account; (d) $2,300 unpaid utility and rates arrears; (e) $12,000 unsecured medical/equipment debt. |
|---|---|
| Family circumstance | Son (executor, non-beneficiary of the debts) is being pursued by two creditors under the incorrect belief that he is liable for his father's debts. |
Case flow
1 · Referral
Community legal centre → LWD. Family in acute grief; being harassed by two creditors.2 · Eligibility
Secondary beneficiary class — immediate family of a member of the primary class. Access via professional referral (Constitution cl.4).3 · Plan
Advocacy-only for the estate creditors; direct relief for funeral costs; ceased-and-desist letter to two harassing creditors.4 · Execute
Financial counsellor advises on estate administration; LWD funds the funeral shortfall; solicitor issues cease-and-desist letters citing s.12DJ ASIC Act and ACL s.50.Intervention detail & outcomes
| Debt / issue | LWD intervention | Cost to LWD | Outcome |
|---|---|---|---|
| Estate debts — credit card + personal loan + medical | Advocacy letters advising creditors that debts abate against a small estate under NSW Probate and Administration Act principles; standard letter template. | $0 | Creditors withdraw claims. Estate distributes what remains after funeral. |
| Two creditors harassing the son | Solicitor issues cease-and-desist letters citing misleading and deceptive conduct (ACL s.50; ASIC Act s.12DJ). Complaint to AFCA and OAIC referenced. | $800 (solicitor advocacy) | Harassment ceases within 5 days. |
| Funeral account ($6,800) | Direct relief to funeral director. Board-informed under DAS §5.4 (below $10,000 aggregate cap). | $6,800 | Funeral director paid; family relieved of that stress. |
| Utilities/rates arrears ($2,300) | Direct relief; final accounts settled to allow tenancy handover. | $2,300 | Cleared. |
| Grief support referrals | Family referred to bereavement support and (for the son) financial counselling. LWD does not deliver these services; it refers. | $0 | Family connected to ongoing supports. |
Summary
| Total LWD direct expenditure | $9,900 |
|---|---|
| Beneficiary-side outcome | ~$25,000 in unsecured estate debt neutralised via advocacy; funeral fully paid; utilities/rates cleared; harassment stopped; family connected to bereavement supports. |
| Authorities engaged | NSW Probate and Administration Act 1898 (debt abatement in a small estate); Bankruptcy Act 1966 Pt XI (referenced for estate insolvency test but not triggered); ACL s.50; ASIC Act s.12DJ; ASIC RG 96 (debt-collection); DAS §5.4; Direct Relief Policy §§3, 4. |
| Note on secondary beneficiary class | This case falls squarely within the secondary beneficiary class under Constitution cl.4 — immediate family and dependants of a member of the primary class, accessed by professional referral. It is included in the Bank because a material minority of LWD's expected case load is expected to arise post-mortem or in the final weeks of life when the beneficiary can no longer engage directly. |
Cross-case pattern — what these three composites show
- ☑ LWD's direct expenditure is typically $5,000–$15,000 per case; more of the total value delivered comes from advocacy that unlocks money the beneficiary is already entitled to (super, insurance, TPD).
- ☑ The ratio of unlocked value to LWD direct cost is expected to be at least 5:1 across the case book, with headline cases running much higher.
- ☑ Nearly every case involves multiple different legal regimes at once — NCCP hardship, super early release, life-insurance policy terms, deceased-estate law. That is precisely why an individual, dying person, cannot practically do this alone.
- ☑ Direct payoff is rare and bounded, used only where negotiation has failed or where the debt is too small for negotiation to be worth pursuing.
- ☑ Referral pathways will typically include: financial counselling agencies, community legal centres, hospital social workers, palliative-care teams, and condition-specific charities (e.g. MND Victoria, cancer support networks).
Once operating: consent-based real cases
From the point LWD is operational, this Bank will be progressively replaced with de-identified accounts of real cases, published only with the informed written consent of the beneficiary (or their executor/next-of-kin after death), under the Privacy Policy and Beneficiary Data Handling Policy. No case will be published without consent regardless of how anonymised it is.
Related documents
Direct Relief Policy — per-event, per-year, aggregate caps referenced above.
Board Charter — DAS §5.4 governs beneficiary-services approvals.
Donor One-Pager.
Founding Donor Deck.
Legal Research Memo — the underlying legal framework.