Making a formal arrangement with your creditors
Part IX Debt agreement
An option to stop further accrual of interest on unsecured debts up to certain limits. Repayments are based upon a household budget to ensure ability to meet the new commitment. A legally binding agreement giving certainty of repayment to both Creditors and Debtors. Ceases all legal action for recovery of debts.
Do I qualify for a debt agreement?
If you have not been bankrupt, utilised a debt agreement or given an authority under Part X of the Bankruptcy Act in the last 10 years
If you have an after tax income of less than $88,547.55 per annum
If you have unsecured debts of less than $118,063.40
If you have unsecured divisible property of less than $236,126.80
You are insolvent (you cannot pay your debts as and when they become due and payable)
A debt agreement may sound great - but is there a downside to doing an arrangement like this?
Yes, there are consequences if you are considering a debt agreement, being;
Your name will appear on a credit reporting agency for up to 5 years
A debt agreement may not release you from all of your debts
A debt agreement is an act of bankruptcy
A debt agreement may affect your business
Get more advice on how Bankruptcy works
The individuals circumstances and that of their family are paramount when considering any action under bankruptcy. Sometimes it is the best or only solution, to assist a client moving forward in life.
Contact us for more information on re-financing options on 03 6334 1477