Get out of debt with Get Debt Free
In 1996 the Government introduced legislation called a Part IX Debt Agreement, which offers people in financial difficulty an alternative to bankruptcy.
A debt agreement proposal is a simple process that allows you to come to a compromise with your creditors and freezes the interest, for all of your unsecured debt.
Get Debt Free will assist you with all relevant documentation to prepare a statement of your financial situation and work out payments that best suit you.
Here are some examples of provable unsecured debts that will be covered in a debt agreement;
- Credit cards
- Store cards
- Business loans
- ATO Debt – Provable but not extinguished
- Unsecured personal loans
- Trade creditors
- Legal fees
- Medical fees
- Court orders (not including fines)
- Pawn shop / Pay Day lenders
- Child Support - Provable but not extinguished
- Unpaid rent
- Overdrawn accounts
Debts that are extinguished
These are debts that cannot be pursued after a debt agreement has been completed.
An example, if under a debt agreement a creditor receives 65 cents for every the dollar they were owed, they cannot chase the remaining 35 cents in the dollar after the debt agreement ends.
Benefits of a debt agreement include:
- Provable debts under a debt agreement are extinguished (ATO, Debts incurred by fraud & child maintenance)
- You only have one regular payment to make, instead of numerous individual payments
- It allows you to make payments that suit your budget and income
- It consolidates all of your unsecured debts and freezes the interest
- No more creditors or collection agencies harassing you
- No more crippling interest rates
- Removes the stress from repaying you debts
Conditions for entering into an agreement include:
- Must be working full time (37 hours per week)
- Must have two debts with two separate creditors
- You must not have been bankrupt in the last 10 years
- You must not have entered into a debt agreement in the last 10 years
- Your unsecured debt must not exceed $100,664.20 (indexed)
- Your after tax income does not exceed $75,498.15 (indexed)
- We suggest a minimum of $7,000 in debts, for consolidation to be viable for you
Debt agreements are registered on the National Personal Insolvency Index (NPII). Veda Advantage and any credit-reporting agencies use the information on the NPII to advise creditors that you have submitted a debt agreement proposal and/or are party to a debt agreement. A debt agreement will be listed on your credit record for a seven year period. During this time it may be difficult to obtain credit.
How do you become debt free and avoid bankruptcy?
Contact Get Debt Free on 1800 98 10 70 and speak to a friendly debt professional on their 24/7 Help line.
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