Is a Part IX Debt Agreement right for you?
May 20, 2020What debts can be included under a Debt Agreement?
May 20, 2020Debt Agreement Pro’s
- Certainly, debt agreements are an alternative to full bankruptcy.
- Above all, your unsecured debts’ interest is frozen. Only the principal plus establishment fees are paid.
- In addition, your creditors cannot pursue you legally for recovery of the money owed.
- Above all, you can apply for multiple household debt agreements to reduce the overall household debt.
- Finally, if you have property equity within the equity threshold, you can retain your property.
Debt Agreement Cons
- Firstly, they will affect your ability to get credit.
- Above all, a debt agreement does not include secured assets. Therefore, you still have the obligation to make those payments. As such, if you cannot make the payments, the lender can repossess your assets.
- However, if you run a business, you need to inform your clients that you are under a part 9 debt agreement.
- Keep in mind; some employment industries restrict employment for people under debt agreements.
- Finally, if you are unable to keep the payments on a Part IX debt agreement, you may be made bankrupt. Since simply applying for a debt agreement is an act of bankruptcy. As such, your creditors can apply to make you bankrupt.
See information about how to consolidate your part 9 debt agreement.
Otherwise, contact Loan Saver Network for more information at 1300 796 850.