Debt Agreements - a Solution for Debt Consolidation
The formal name for a debt agreement is a 'Part IX Debt Agreement'.
In its most simple terms, a debt agreement is a debt consolidation arrangement made between yourself and your creditors to pay your debts back in a period of time that you can afford, whilst freezing the interest on the debt. Australian Debt Agreements specialises in the preparation of debt agreements for Australians looking to avoid bankruptcy by taking advantage of a government initiative designed to help people avoid the serious consequences of bankruptcy and to pay their creditors back in a timeframe that suits their budget using a debt consolidation strategy.
Australian Debt Agreements - ITSA Registered Debt Consolidation Expert
Australian Debt Agreements is a registered administrator of Part IX Debt Agreements. The procedure to apply for one is very simple; contact us today on 1300 123 328 or fill out an enquiry form to the right and a debt consolidation consultant will contact you shortly to organise your debt agreement and to prepare it for lodgement with the Insolvency and Trustee Service Australia (ITSA).
Insolvency & Trustee Service Australia (ITSA)
Debt agreements are governed by the Insolvency and Trustee Service Australia (ITSA) - a government body. The government introduced debt agreements as a flexible alternative to bankruptcy.
A debt agreement can only be entered if the debtor is insolvent, which means someone who is unable to pay his/her debts as and when they fall due.
A debt agreement can be entered if a debtor has;
- Not filed for bankruptcy, utilised a debt agreement or given an authority under section 188 of the Bankruptcy Act in the last 10 years;
- An after tax income of less than $66,284.40;
- Unsecured debts of less than $88,379.20 (an unsecured debt is any debt that is not secured against an asset, e.g. property).
Learn more about who can enter a debt agreement.
How to Apply for a Debt Agreement with Australian Debt Agreements
All you need to do to apply for a debt agreement is call and speak with one of our debt consolidation consultants on 1300 123 328. We will ask you a few questions, then we will require some paperwork from you with your signature, then we can lodge the debt agreement proposal with ITSA on your behalf - it’s that easy! Learn more about applying for a debt agreement.
The debt agreement proposal is then sent to your creditors to vote upon. It is accepted if a majority of creditors in value (of the debt) vote in favour of the debt agreement proposal.
Is a Debt Agreement the Same As Bankruptcy?
No - a debt agreement is an alternative to bankruptcy. Although a debt agreement is considered an 'act of bankruptcy', it is very different to bankruptcy itself and has far less ramifications. Bankruptcy can prevent you from travelling overseas; can put your assets at risk (including your home and car) of being sold to recover your debts; and looks far worse on your credit file to lenders when you try to borrow money in the future. Completing your debt agreement shows lenders that you paid your debt back and therefore, that you are less risky to lend money to.
How Australian Debt Agreements Can Help
Thousands of Australians are finding debt agreements to be the best solution to their debt problems. This website has a wide range of useful information about debt agreements and debt consolidation strategies, including: how debt agreements works; who can enter a debt agreement; how a debt agreement can help; benefits of a debt agreement; how to apply for a debt agreement and what debts qualify for a debt agreement. Our trained debt consolidation consultants are available on 1300 123 328 to provide you with further assistance and to assess your finances.
Learn more about ITSA
For more information about ITSA, see our ITSA page.
