The Federal Circuit Court is looking at expanding a counselling service for debtors on its bankruptcy list, after finding that a trial it has conducted over the past couple of years was highly successful. In September 2014 the Federal Circuit Court in Melbourne started providing financial counselling services to self-represented debtors on the court's bankruptcy list. The pilot was done in collaboration with the Federal Court, the Consumer Law Action Centre and Melbourne Law School. The idea was to assist vulnerable debtors and promote the efficient operation of bankruptcy proceedings in the courts. Counsellors worked with debtors, who frequently appear before the court without representation, to give them a better understanding of the proceedings and their rights, as well as help them present their cases. The court reviewed the program in the middle of last year and has just released an evaluation. Problems identified before the trial were that debtors did not understand their legal situation, had trouble explaining their circumstances to the court and did not know where to go for help. All these problems caused delays and additional expense for debtors and the court. Of the matters that went to counselling during the trial a majority were resolved by consent between the parties. "The high proportion of resolutions by consent will inevitably reduce the numbers of reviews and appeals from registrars' decisions, which in turn will reduce the workloads of both Federal Circuit Court and Federal Court judges," the FCC evaluation said. "The project has also increased the court's efficiency by reducing the number of hearings taken to finalise matters involving self-represented debtors." All participants agreed that the project helped debtors to understand the purpose of bankruptcy proceedings and the consequences of being made bankrupt. A number of the debtors in the program were able to demonstrate solvency and avoid bankruptcy, and others accepted bankruptcy as a positive option in their circumstances. Some counsellors involved in the trial said they started to develop relationships with creditors' solicitors, which gave them the opportunity to come up with alternatives such as repayment plans. "When debtors are able to appreciate the real issues before the court they can more properly participate in and engage with their proceedings, promoting access to justice and leading to a more just resolution of proceedings," the evaluation said. The evaluation recommended that the service be expanded and advertised more widely. It also said counsellors should be given ongoing training by the court and more time to work with debtors.