What’s a Part IX Debt Agreement?
A Part 9 Debt Agreement is a Government legislated agreement between you and your creditors. It only applies to your unsecured debts.
A Part 9 Debt Agreement is when you make an offer to your creditors to pay off what you can afford and they decide whether to accept your proposal. This often results in a reduced debt amount with frozen fees and interest and a repayment amount you can afford.
It may be the right solution if you’re struggling to meet your financial commitments. It’s most often a preferred solution to bankruptcy. It can get debt collectors off your back, put you back in control and save you thousands of dollars.
A Part 9 Debt Agreement is a form of bankruptcy and will be noted on your credit file for 5 years. Your name will be listed on the National Personal Insolvency Index for the life of the Agreement. If you don’t make the agreed repayments, your creditors are within their rights to reinstate the original debts with interest and fees.
How do you set up a Part IX Debt Agreement?
- You can’t meet your payments and you tell us your situation
- We prepare and submit a proposal to AFSA
- AFSA contact your creditors who vote whether to accept your proposal
- If approved, you usually make one regular, affordable payment each week or fortnight for 3 to 5 years
Too easy! We do it every day.
To qualify for a Part IX Debt Agreement you need to have:
- not been bankrupt or in a debt agreement in the past 10 years
- after tax income below a set threshold
- unsecured* debts below a set threshold
- divisible assets below a set threshold
- unable to meet your payments
* Usually excludes home loans and car loans as these are normally secured.
If this solution sounds like it might suit you then call us to discuss it further on 1800 00 3328.