Formerly known as the Aboriginal Community Benefit Fund (ACBF), Youpla's decline has left several families struggling to pay for funerals whether it be their own or a loved one.

As the fund has gone broke, more than 8,000 people across NSW have been left stranded and will not receive funeral payments or insurance benefits if a claim is made.

According to recently released data, Dubbo is the fourth most affected area in Australia with 504 people impacted while Walgett (352) and Brewarrina (218) are also inside the top 10.

Federal Member for Parkes Mark Coulton said he is aware of the situation and is looking as to how to eradicate the situation as quickly as possible.

"My office has been contacted by multiple people impacted by the liquidation of funeral insurance provider Youpla Group, and I am doing what I can to help them," he said.

"This is a terrible situation that unfortunately impacts hundreds of people across my electorate.

"I've heard from people who've paid tens of thousands of dollars to ensure their families were not left with the burden of having to pay for their funerals, and now they don't know if they'll ever see that money again.

"It's disgusting that so many innocent people have been treated so badly. Everyone deserves to be buried with dignity, and I will continue to push for a solution for those impacted."

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Mr Coulton is hoping the federal government can find a solution as quickly as possible but is unsure what the current situation is.

"I understand that the Labor Government is currently looking into potential solutions, however, I'm not privy to the details of those discussions," he said.

"Prior to the election, Labor said it will establish an inquiry to look into the company's collapse if elected, but there has not been a firm commitment since.

"I would like to see some form of compensation for those affected, and that the people responsible are held accountable."

Assistant Treasurer and Minister for Financial Services Stephen Jones said he has already talked with some of the families affected by the liquidation of Youpla.

"I am deeply concerned about the impact the collapse of Youpla has had on vulnerable Indigenous families and communities and am committed to finding a resolution for victims," he said.

"I recently met with members of the Indigenous community and consumer group representatives in Far North Queensland and assured them that the Government is aware of the full scale of this issue and is taking action.

"This is in contrast to our predecessors who ignored this problem and took no steps to address it.

"The Government is actively working on potential solutions to address this issue and I hope to share more on these in coming weeks."

Aboriginal Financial Counsellor Bettina Cooper believes Youpla may have known what they were doing by targeting people.

"The collapse of the predatory funeral fund Youpla (ACBF) is having a devastating cultural and financial impact on First Nations communities across Australia," she said.

"Youpla sales agents went door-to-door to systematically target disadvantaged and vulnerable communities. In some smaller remote towns, almost every household was sold into a Youpla policy - including teenagers and children."

"Youpla targeted people who were doing the right thing by trying to ease the financial burden on their families when they passed. Instead, these families are in a state of deep despair, facing a financial and cultural crisis."

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