Debt Agreement

6 GOOD REASONS WHY YOU SHOULD CALL US NOW 1300 339 604

Let Us Negotiate
For You

Let Us communicate and negotiate with your creditors to get the best outcome. You can have peace of mind.

Stop Interest and
Fees Now

Let us help you start repaying your debt, not just interest and fees.

Stop The Debt Collector Calling You

The creditors will have to call us, instead of you. So you will have peace of mind.

WE REDUCE THE AMOUNT YOU REPAY

Debt Agreements
allow you to only repay a percentage of what you owe, based on what YOU can afford. Let us show how we can reduce the amount you have to pay back.

MAKE REGULAR AFFORDABLE PAYMENTS

Making sure you can still live and enjoy your life, is how we set up your debt agreement. We base it on what you can afford.

BECOME DEBT FREE IN 3 – 5 YEARS

You will know EXACTLY when you’ll be debt-free. Most debt agreements are between 3 – 5 years.

What is Debt Agreement

What is a Debt Agreement?

 

When debts spiral out of control and you feel like you’re on the edge of monetary ruin, you need to carefully evaluate the choices available to you. While bankruptcy might seem like an easy way out of a tough circumstance, the right debt agreement might also offer the financial relief you require. It’s important to understand the distinctions between Part 9 Debt Agreements and bankruptcy.

No two individuals will ever have similar financial concerns to deal with. Whether it be the reason for your debt, the total you owe, the business you owe it to, or any other element, every circumstance is different. There are no one-size-fits-all options. This means you’ll have to carefully choose the best option for your particular situation.

To help you make an informed choice, we’ve set out everything you need to know when comparing a debt agreement vs bankruptcy. To talk to Bankruptcy Solutions now about your specific circumstances, call us now on 1300 339 604.

Is a Debt Agreement Right for me?

 

There are numerous advantages of a debt agreement over bankruptcy. With a debt agreement, a new payment plan is developed that suits both you and your creditors.

This means you can pay your creditors a regular payment that is budget-friendly for you while satisfying the requirements of your creditors. In addition, you’ll have all interest rates frozen to ensure your regular repayment won’t spiral out of control and cause you to accumulate additional debt.

Another crucial distinction is that with a debt agreement, you can keep your assets. However, similar to declaring bankruptcy, your credit rating will be impacted for 5 years. You will also be listed on the National Personal Insolvency Index but just for 5 years (bankruptcy is lifelong on the NPII). While it will be challenging to borrow from new creditors throughout this time, it’s an excellent opportunity to stop your dependence on credit cards and personal loans.

Nevertheless, the most significant advantage of a debt agreement vs bankruptcy is that you will be debt free once the agreement comes to an end. This will assist you to have a new beginning without the stigma of bankruptcy hanging over you.

is debt agreement right for me

Which Option Is Best for You?

Once again, there’s no cookie-cutter answer to which alternative is best for you. You’ll need to take a close look at your financial circumstances and goals to think about which option suits you.

Here are some elements to think about before deciding on an option:
Type and amount of debt

The type and amount of debt matter for which alternatives are available to you. A debt agreement only applies to unsecured debts, like credit card debt. You’re likewise restricted to just how much debt you can claim under a debt agreement. On the other hand, there are less restrictions with bankruptcy, allowing for a more extensive solution.

Earning amount

Just much you make also matters. With a debt agreement, there are no limitations to how much you can earn, however you do need to be making enough to cover your repayments. There is an earning threshold for filing for bankruptcy. Any money you make over this limit will be transferred to your creditors.

Vehicle Ownership

With a debt agreement, there are usually no limitations to the number of vehicles you can own, though you’ll need to keep making repayments if you owe money on your car. If you file for bankruptcy, your vehicle is at risk of repossession to help pay for your debts.

By giving consideration to the factors above, you’ll see which alternative is a better fit for your circumstances. When it comes to a debt agreement vs bankruptcy, you need to think about just how much your life will be affected by your choice.

Type and amount of debt

The type and amount of debt matter for which alternatives are available to you. A debt agreement only applies to unsecured debts, like credit card debt. You’re likewise restricted to just how much debt you can claim under a debt agreement. On the other hand, there are less restrictions with bankruptcy, allowing for a more extensive solution.

Debt Agreement Vs Bankruptcy

In the battle of debt agreements vs bankruptcy, keep in mind that both will impact your financial status. Bankruptcy will definitely eliminate much of the financial burden you experience, however it will also significantly impact your life and potentially your future as well. A debt agreement will have you paying off debt for a number of years, however you’ll have far more flexibility and the ability to keep much more of what you’ve worked for.

When it comes to understanding your unique circumstance, we’re here to help! If you want to speak with a specialist about declaring bankruptcy or setting up a debt agreement, please contact us now on 1300 339 604 or alternatively, have a look at our Bankruptcy and Debt Agreement pages to find out more. We have more than 15 years of experience assisting Australians to manage their debt with peace of mind.

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