Source: https://lanyana.debtrescue.com.au/articles/part-9-debt-agreement-consequences
Timestamp: 2019-07-23 11:54:19
Document Index: 509547223

Matched Legal Cases: ['art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9', 'art 9']

Posted by Debt Rescue on Apr 27, 2018 2:35:00 PM
A Part 9 Debt Agreement is a legally binding agreement between you and your creditors which outlines a new affordable payment schedule. In order for this to happen, your creditors agree to pause further interest payments, remove all fees and accept a percentage of each dollar owed to satisfy your debt. A Part 9 Debt Agreement can only include unsecured debts and the majority of your creditors must agree to your proposal before it is put in place.
If you are experiencing severe financial hardship, you could already have defaults and judgements noted on your credit file. If this is the case, a Part 9 Debt Agreement may be beneficial for you. A Part 9 Debt Agreement allows you to repay your debts at an amount which you can afford.
Australian debtors and creditors will find protection and support in the Bankruptcy Act 1966. This Act provides a legislative framework which forms Part 9 Debt Agreements and Bankruptcy processes. When you enter a Part 9 Debt Agreement or Bankruptcy you are not only bound by law but also protected. This means that if creditors continue to harass you after you have entered an agreement, they are breaking the law. A Part 9 Debt Agreement allows you to repay your debts without having to declare bankruptcy. Bankruptcy involves a number of consequences and obligations which restrict your way of life.
Part 9 Debt Agreement consequences only apply while you are in the agreement. There are no long-term consequences. In fact, if you are really struggling with debt, a Part 9 Debt Agreement offers a simple and effective debt relief solution. A Part 9 Debt Agreement won’t have an impact on your job, your wages, the assets you own, the car your drive or any property you own. It will simply provide you with an achievable action plan to repay your debts.
Another benefit of a Part 9 Debt Agreement is that your debts stop accruing any further interest during the agreement. It is common for Debt Rescue negotiators to be able to whittle down the cost of your debts a little also, meaning you could pay less in the long run.
If you need relief from debt but are not sure which solution suits you, give us a call! Debt Rescue Case Managers take your situation into account and tailor the best solution for you. They will explain the benefits and consequences of a Part 9 Debt Agreement so you can make an informed decision before proceeding. Give us a call on 1800 560 568.