DEBT AGREEMENT
What is a Debt Agreement?
There is 2 types of debt Agreements
1. Informal Agreements;
It is possible to negotiate arrangements with creditors to repay certain debts over a period of time.
Dealing with debt in this way requires some skill, and it is best to consult a Debt financial facilitator to put a realistic and manageable proposal to persuade creditors to accept something like a reduced lump sum or a long term instalment arrangement.
Creditors will ask to be informed of your complete financial position, including other creditors, to ensure that any proposal is fair.
Clearly entering into such an arrangement avoids the stigma and consequences of bankruptcy, although it is likely that creditors may make an adverse credit report which will remain on your credit file for a period of 5 years.
There is no criteria income or assets criteria with the Informal agreement and your name is not recorded on The National Personal Insolvency Index (NPII) which is a public record of all insolvency.
There is 2 types of debt Agreements
1. Informal Agreements;
It is possible to negotiate arrangements with creditors to repay certain debts over a period of time.
Dealing with debt in this way requires some skill, and it is best to consult a Debt financial facilitator to put a realistic and manageable proposal to persuade creditors to accept something like a reduced lump sum or a long term instalment arrangement.
Creditors will ask to be informed of your complete financial position, including other creditors, to ensure that any proposal is fair.
Clearly entering into such an arrangement avoids the stigma and consequences of bankruptcy, although it is likely that creditors may make an adverse credit report which will remain on your credit file for a period of 5 years.
There is no criteria income or assets criteria with the Informal agreement and your name is not recorded on The National Personal Insolvency Index (NPII) which is a public record of all insolvency.
2. Debt Agreements,
Also known as a Part IX Debt Agreement, is a legally binding agreement between you and your creditors.
Debt Agreements can be a flexible way to come to an arrangement to settle debts without becoming bankrupt.
With the assistance of a Debt Agreement administrator, a proposal needs to be submitted to Australian Financial Security Authority (AFSA) for approval before being put to a person's creditors. A debtor must be insolvent (unable to pay debts as and when they fall due) in order to put forward a proposal to enter into a Debt Agreement.
How debt agreements work?
Some of the key benefits of entering into a Debt Agreement are:
Am I eligible for a debt agreement?
Also known as a Part IX Debt Agreement, is a legally binding agreement between you and your creditors.
Debt Agreements can be a flexible way to come to an arrangement to settle debts without becoming bankrupt.
With the assistance of a Debt Agreement administrator, a proposal needs to be submitted to Australian Financial Security Authority (AFSA) for approval before being put to a person's creditors. A debtor must be insolvent (unable to pay debts as and when they fall due) in order to put forward a proposal to enter into a Debt Agreement.
How debt agreements work?
Some of the key benefits of entering into a Debt Agreement are:
- One point of contact
- Interest and fees are capped
- I simple payment plan to all your debts
- All unsecured debt is consolidated into one payment
- Creditors and their Debt Collectors are no longer able to contact you
- We negotiate to pay a percentage of your combined debt that you can afford over a period of time
- You make repayments to your debt agreement administrator, rather than individual payments to your creditors
- After you complete the payments and the agreement ends, your creditors can't recover the rest of the money you owe
Am I eligible for a debt agreement?
- Are unable to pay your debts when they are due
- Have not been bankrupt, had a debt agreement or personal insolvency agreement in the last 10 years
- Have unsecured debts and assets less than $ 115,733.80.
- A person cannot propose a debt agreement if their divisible property is more than this limit. $ 231,467.60.
- Estimate your after-tax income for the next 12 months to be less than $ 86,800.35.
Please call us and will discuss the your financial situation and we go through the best option for you
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We will recommend the best option for you based on your circumstances.
We do all the paperwork for you, so you do not have to fill in any forms.
We work around your schedule.
To make it as easy as we can for you.
We work around your schedule.
To make it as easy as we can for you.