A Part IX Debt Agreement is a legally binding agreement between you and your creditors. This means creditors will no longer charge you interest on your debts. You will just pay all your unsecured debts back in one easy regular weekly or fortnightly instalment.
It represents an alternative to bankruptcy, and is suited to individuals on an income lower than $1,651.70 (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 weekly or fortnightly instalment
There are 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) for 5 years providing a debt agreement (Part IX) has been fulfilled.
- A debtor who enters into a debt agreement will appear on credit reporting agencies 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 $85858.50 per annum (that’s no more than $1,651.125/week)
Have unsecured debts of less than $114,478.00
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 proposal with your creditors. which if agreed to, becomes legally binding.
This can save you thousands on interest and put you in the direction to be free of debt.
If you are in debt, struggling to meet repayments 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.