We know a few specialized lenders who can help you if you are currently in a debt agreement. A debtor who proposes a debt agreement commits an act of bankruptcy. It is not the same as going bankrupt. A debt contract is an alternative to bankruptcy, but since it falls under Part IX of the Bankruptcy Act, the proposal of a debt contract is considered an act of bankruptcy. You might be tempted to enter into debt agreements to reduce your interest or simplify your repayments, but you can actually honor your repayments without any real harshness. A debt agreement isn`t really appropriate, as it will affect your ability to get loans and other services in the future. Maybe you can refinance yourself at a lower interest rate and/or consolidate your debt to make things easier. You may have options to increase your income or reduce your expenses. See Money Smart at www.moneysmart.gov.au options If you go bankrupt, you don`t have to pay most of the debts you owe. Collection companies stop contacting you.
But it can severely hurt your chances of borrowing money in the future. AFSA will process your proposal after assessing it, verifying your authorization and finding that all documents are complete. AFSA writes to your creditors that you have filed a Debt Agreement Proposal and provides them with a copy of your proposal and explanatory memorandum. If your creditors agree to your Debt Agreement Proposal, you`ll know exactly how much you`ll have to pay each week or two weeks or months for the duration of your agreement. This way, you can budget and plan your finances. A Part 9 debt agreement is made available to low- to middle-income individuals who are unable to pay what they owe to their creditors, but who also wish to avoid bankruptcy. In this context, many lenders may not be willing or unable to provide an appropriate loan. Nmoni, on the other hand, is able to offer Part 9 private loans to clients who have demonstrated their ability to meet their obligations. Instead of focusing on your credit history or past debt, we recognize that you`ve probably come a long way since these mistakes and may be in a better position to pay off a loan. .