Frequently asked questions
As a Debt Agreement Administrator, we can help you assess your situation and discuss whether a Debt Agreement is the right course of action for you.
A debt agreement is a binding agreement between you (the debtor) and your creditors where they agree to accept a sum of money you can afford. The agreement falls under Part 9 of the Bankruptcy Act 1966.
To Qualify for a Debt Agreement
- You have unsecured debts greater than $8,000 but less than $108,162
- You are unable to pay your debts when they fall due
- You have an after tax income of less than $1560.04 week or $81,121.95 over the next 12 months
- You have not been declared bankrupt, utilised a debt agreement or given an authority under Part X of the Bankruptcy Act in the last 10 years
Note: all amounts are indexed bi-annually.
You are eligible for a Debt Agreement if you:
- Have a job but are struggling to pay your debts
- Are receiving Centrelink Benefits or on a Pension
- Have Court action threatened or pending
- Have a bad credit record
- Are behind in Bills or Loan Repayments
What debts can be put into a Debt Agreement?
- Unsecured Personal Loans
- Centrelink overpayments
- Disconnected phone or electric bills
- Tax debt
- Repossessed car or house shortfalls
If you are not sure if a Debt Agreement is right course of action for you then please give us a call. As a Government Registered Debt Agreement Administrator we able to assist you in determining if this is the right solution for you.
Take the first step towards debt relief, enquire online today to receive a free phone consultation with one of our friendly debt solution professionals at a time convenient to you or call now on 1300 558 277.
What’s the difference between Bankruptcy and a Debt Agreement?
Many consumers are unaware of the consequences of declaring bankruptcy, and often do not realise that there are alternatives, the most popular being a Debt Agreement.
If you declare bankruptcy, the following restrictions on you can be enforced:
Travel Restrictions
If bankrupt, you must request permission to travel overseas and often you will need to show where the money to fund your trip has come from.
Yearly assessments of income & compulsory contributions
When bankrupt, your trustee will need to conduct an annual assessment of your income to see if you have become liable for compulsory income contributions. If you earn over a certain amount you still have to make payment contributions towards your debts.
Automatic loss of assets
When you declare bankruptcy, your trustee will make an assessment as to what assets you can keep and what assets will need to be surrendered. This may include you house and cars.
Furthermore, whilst you are bankrupt, you cannot purchase any assets.
A debt agreement however, allows you to negotiate a payment plan with your creditors whereby no further interest, service fees or default fees are able to be charged.
Travel Restrictions
In a Debt Agreement, there is no restriction on travel or reporting requirements.
Yearly assessments of income & compulsory contributions
Under a Debt Agreement, there is no requirement for your income to be assessed annual and your repayments modified based on your earnings. This means if you get a higher paid job after entering into your Debt Agreement, you will be able to either pay off your debt sooner, or put money into your savings account.
Automatic loss of assets
In a Debt Agreement, you get to keep all of your assets.
Don't put it off any longer - Take charge of your debt and Contact Us Today!
Call 1300 558 277 or Fill in the form above now and get your life back on track!