Before you make the decision to apply for a bankruptcy filing or debt agreement, talk to a financial advisor. Once you have paid the agreed amount, you have paid that debt. Once your agreement is activated, we manage all payments for you. We pay payments to your creditors quarterly for the duration of your agreement with the funds you pay into our trust account. We`ll also send you quarterly progress reports so you can see what you`ve paid and what you still have to pay to get out of debt! A Part IX debt agreement is a legal agreement with your creditors to repay your debts at a reduced interest rate you can afford. This is a binding agreement for both parties, which falls under Part IX of the Bankruptcy Act. That doesn`t mean you`re going bankrupt. Bankruptcy is the formal process that explains why you are not able to pay your debts. Ask for a payment plan that you can afford. This would be an amount every two weeks or every month, so you pay off the debt over time.
If you are unable to pay your debts, you may want to consider bankruptcy or an alternative to bankruptcy called a “debt agreement.” These will be formal legal options available under the Bankruptcy Act 1966. A debt agreement covers most unsecured debts, such as: it`s important to stay there and constantly ask Centrelink to waive your debts. It may be helpful to ask your doctor, counselor or community leader, if you have one, to provide reports to explain your circumstances. If you engage us with Debt Rescue, we will take all communications with your creditors and negotiate with them on your behalf. Once the creditors have accepted the agreement, you will reimburse us instead of paying the individual creditors. Once you have made the payments and the agreement ends, your unsecured creditors cannot attempt to withdraw the rest of the money originally owed. A debt agreement is not the same as a debt consolidation loan or informal payment agreements with your creditors. If you`re faced with insurmountable debts that you can`t pay off, a debt agreement may be an appropriate option. Many people turn to bankruptcy when they are struggling with debt.
While bankruptcy is an option that can settle your debts and allow for a fresh start, it is not the only option and comes with constraints and consequences. In contrast, a debt agreement has no lifelong impact and is a viable alternative to bankruptcy. Yes. The common debt can be included in a debt agreement. It is best to know how the other holder of a common debt plans to manage those debts before they continue. The creditor may choose to sue the other joint holder in order to take back the repayments lost by a debt agreement. A debt agreement is mentioned in your credit information for at least 5 years and affects your ability to obtain further loans during that period….