What is a Part 9 debt agreement?May 20, 2020
What are the pros and cons of a Part 9 debt agreement?May 20, 2020
A debt agreement can avoid the full effects of bankruptcy. Nevertheless, entering into a Debt Agreements has serious consequences as with any insolvency.
Part 9 Debt Agreement benefits
- For the most part, an insolvency agreement can assist you in gaining control of your debts.
- Certainly, harassing phone calls will stop; as the debt agreement administrator manages your debts.
- Furthermore, you will repay what you can afford based on a budget you submit for assessment.
- Subsequently, will have a negative effect on your credit file and credit score.
- Regardless, you may not be able to obtain future credit for up to 7 years
Is a Part IX debt agreement suitable for you?
- Firstly, are you having issues making your loan repayments on time?
- Secondly, you haven’t been in bankruptcy in the previous ten years?
- Thirdly, you have unsecured debts below the set amount of $116,662 (as of 29th Jan 2020).
- Finally, your after-tax income is less than the threshold amount of $87,496.50 (as of 29th Jan 2020).
If you answered yes to these questions, then a debt agreement may be suitable for you. However, Loan Saver recommend speaking to a financial counsellor to advise the most suitable solution.