Part IX (9) Debt Agreements in Brisbane are one of the most successful ways to get out of debt and avoid bankruptcy. It is not a loan, nor is it a way to consolidate your debts. A Debt Agreement is binding contract between you and your creditors outlining a new payment arrangement. The new payment arrangement will reflect a repayment schedule which is better suited to your current financial situation based on your income, expenses and debt.
Debt Agreements in Brisbane are very common as they make your debts more affordable and save you thousands of dollars over the life of the agreement. However, Debt Agreements in Brisbane will have an impact on your credit file and for the course of the agreement you may find it difficult to secure any more finance.
How Does a Part IX (9) Debt Agreement Work?
To enter into Debt Agreements in Brisbane, you must be insolvent. To be insolvent is to not have enough money, either in cash or assets, to be able to repay your debt. If your debt is beyond being able to fix through refinancing, consolidation or any other means of debt relief such as an Informal Agreement, you should consider a Debt Agreement.
The professional, experienced staff at Revive Financial will get in touch with each of your creditors and negotiate a new repayment arrangement which is better suited to your current financial situation. Debt Agreements in Brisbane can reduce your debts a number of ways, depending on you, your financial situation and what you can afford. It is possible to:
- Pause the interest and fees on your debt
- Reduce your overall debt amount so you only need to pay a percentage of every dollar owed
- A combination of the above.
Entering into Debt Agreements in Brisbane
Once a Debt Agreement has been proposed by Revive Financial, your creditors must vote to approve it. If your Debt Agreement is rejected the first time around, your Case Manager will go back to the creditors who voted against you and continue negotiations.
Once your Debt Agreement has been approved all recovery action must cease, so all the harassing phone calls and letters will stop. You must make a regular repayment, usually a weekly repayment, to your creditors and you must continue with this payment until the Debt Agreement is complete.
Debt Agreements in Brisbane and Your Credit File
A Part 9 Debt Agreement was introduced to the bankruptcy act as an alternative to bankruptcy. They offer a way for someone to honor their creditors and avoid bankruptcy despite their financial hardship. As Part 9 Debt Agreements are part of the Bankruptcy Act, entering into one is still considered a form of bankruptcy and is noted on your credit file. A Debt Agreement doesn't have the harsh, restricting consequences of bankruptcy however having it noted on your credit file can still make it difficult to apply for credit both during and after the agreement. Debt Agreements in Brisbane are legislated under the Bankruptcy Act which is regulated by the Australian Financial Security Authority (AFSA) so your name will also be listed on the National Personal Insolvency Index which can be accessed for a fee.
Debt Agreements in Brisbane
Debt Agreements in Brisbane are incredibly common forms of debt relief. If you feel a Debt Agreement could benefit you and your personal situation call Revive Financial. Our Case Managers will assess the best course of action for you and get you on the road to financial recovery. Cal us today on 1800 534 534.
For more information on Debt Agreements and how they can help you find financial relief, check out our Debt Agreement page.
