With a debt agreement, all your unsecured debts are quarantined. This means no creditors can charge you more interest or take any action against you. You just pay all your unsecured debts back in one easy regular payment which is interest free.
A Part IX Debt Agreement is a negotiated arrangement between your creditors and you.
It represents an alternative to bankruptcy, and is suited to individuals on an income lower than $1,599.41 (after tax) per week.
Reduce Payments by up to 50% –
The Right Agreement Can Help You
There are a number of benefits to putting a Debt Agreement in place, including:
- Interest on your debts is frozen.
- Creditors can no longer pursue you.
- We handle communication with your creditors
- You pay just ONE regular payment
There a number of matters that need to be considered prior to entering into a debt agreement:
- Proposing a debt agreement is an act of bankruptcy.
- If not accepted a creditor can apply to the court for bankruptcy.
- A debtor who enters into a debt agreement will be recorded on the National Personal Insolvency Index (NPII) forever providing a debt agreement (Part 1X) has been fulfilled.
- A debtor who enters into a debt asgreement will appear on credit reporting agencie’s records for up to five (5) years. This will effect the debtor’s ability to obtain further credit.
- A debt agreement does not release another person from a debt jointly owed with the debtor.
- A debtor must disclose that he/she is a party to a debt agreement if obtaining goods and services in excess of the current indexed amount. Refer below.
You can put forward a proposal for a Debt Agreement to creditors, if you:
Have not been bankrupt, utilised a Debt Agreement or been given an authority under Part X of the Bankruptcy Act in the last 10 years.
Have unsecured debts of more than $8,000
Have an after tax income of less than $83,169.45 per annum (that’s no more than $1,599.41/week)
Have unsecured debts of less than $110,892.60
How We Help –
Getting You Back On Track
If you are in debt, and struggling to meet your repayments, a Debt Agreement may be an effective solution for you.
A Debt Agreement is a negotiated compromise with your creditors, which if agreed to, becomes legally binding.
This can save you thousands of dollars in interest payments, and help you get back on track.
If you are in debt, and struggling to meet payments or manage your financial commitments, then a Debt Agreement might be the right solution for you.
As you can see, there is a range of choices but only one will be right for you.
The team at Capital Debt Solutions will find the best solution and work with you and your
creditors to get you back on track and rebuild your financial future.