AFSA stands for Australian Financial Security Authority and is the Australian Government body which regulates bankruptcies, debt agreements and insolvency etc. Before 15 August 2013 it was called the Insolvency & Trustee Service Australia or ITSA.
The role of AFSA is to:
- Provide information about options to deal with unmanageable debt
- Administer the Personal Property Securities Register (PPSR) which started on 30/1/2012
- Register and process documents relating to personal insolvency and Formal Debt Agreements
- Maintain the National Personal Insolvency Index (NPII)
- Investigate alleged offences relating to the Bankruptcy Act and Personal Property Securities Act
- Act as trustee for personal insolvency administrations where a private trustee is not appointed
- Regulate personal insolvency practitioners
So every time someone submits a Formal Debt Agreement, it must go to AFSA within 14 days of signing. They must receive their lodgment fee and approve it before sending it on to the creditors for voting. They record the Debt Agreement proposal on the National Personal Insolvency Index (NPII). After 5 weeks they collect the votes and determine if the Debt Agreement is accepted or rejected and record the result on the NPII. They pass the Debt Agreement back to the Registered Debt Agreement Administrator (RDAA) who submitted it. The RDAA administers the Debt Agreement over the time that it runs which may be up to 5 years or more. AFSA also process variations and terminations to Debt Agreements.
With all the official regulations and complications of developing and lodging a successful Debt Agreement, professional guidance is simply essential. SOS Debt Solutions do exactly this every day and know how to put together your agreement for the best possible result. Free call SOS now on 1800 SOS DEBT (1800 767 332) or go to our contact form and we’ll get back to you about your best approach.