What is a Debt Agreement proposal?
By Administrator 08 August, 2013
What is a Debt Agreement Proposal?
A Debt Agreement proposal is an offer made in the form of a contract between you, your creditors and your Registered Debt Agreement Administrator. It must contain your personal financial information and your offer to settle your unsecured debts. Your proposal must be set out in the approved form supplied by AFSA and the prescribed processing fee must be paid before AFSA will distribute it to your creditors for voting.
How do I go about setting up a Debt Agreement Proposal?
Most people engage the services of a Registered Debt Agreement Administrator (RDAA) to help prepare the Debt Agreement Proposal. Debt Free is a RDAA and we will start the process by collecting the following information from you:
- Your personal details
- Your salary
- Your expenses
- Your unsecured debts
- Your secured debts
- Your assets owned outright
Once this information has been collected and validated we will be able to work out how much you can afford to repay to your creditors. We usually recommend that you make regular payments which match your payroll cycle (like weekly, fortnightly or monthly). As part of our assessment process we will also work out how many years your Debt Agreement will need to run for. Most agreements run for between 3 to 5 years but we assess each case individually to tailor the proposed dividend to what we think your creditors are likely to accept. There is no point in spending the time & money in preparing a proposal unless it is likely to be accepted by your creditors.
Here at Debt Free we have a unique debt assessment system which we have developed over a number of years which will work out the best Debt Agreement proposal to suit your budget and also meet the needs of the your creditors.
If you are thinking about proposing a Debt Agreement give us a call. We will do a financial assessment for free to make sure that a Debt Agreement suits your individual circumstances. Call us now on our toll free line 1800 676 598.