Debt Agreement

Debt Solutions

A Debt Agreement is a legally binding repayment plan between you and your creditors and will be based on what you can afford to repay. A Debt Agreement may help you avoid formal bankruptcy.

It is a streamlined process to consolidate unaffordable debts for insolvent debtors with the protection of the Bankruptcy Act, if your:

  • Unsecured debts are < $88 379.20; and
  • Equity in assets are < $88 379.20; and
  • After tax annual income is < $66 284.4 or approximately < $88,379 (before tax for Australian residents)

The benefits of a DA include:

  • Affordable regular payments tailored to your budget;
  • Unpaid debt will be legally written off (including interest);
  • Binds all creditors into the agreement
  • Fixed payment period usually from 3 to 5 years
  • We deal with all creditor calls and correspondence;
  • Avoids the stigma of formal bankruptcy – allowing you to enjoy the following benefits:
    • Freedom to travel overseas
    • Assets will be protected

A DA is ideal for insolvent debtors who have a poor credit record and cannot obtain a consolidation loan. A DA is a formal legally binding agreement with your creditors and is an act of bankruptcy under the Bankruptcy Act. As such it should not be confused as a consolidation loan.

To read our Frequently Asked Questions about a DA click here.

Remember our advice is free and without obligation,
so call us today toll free on 1800 98 10 70, you have nothing to lose!

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