The use of debt agreements to avoid bankruptcy is on the rise, with more and more Australian’s turning to debt agreements when they find themselves with insurmountable debt problems.
Debt agreements give people debt relief, certainty and many protections, whilst avoiding some of the more arduous conditions that come with bankruptcy.
Additionally, debt agreements can help people keep their family home.
For more information, check out our Debt Agreement page, which has a lot of useful information written by our registered debt agreement administrator.
Whilst debt agreement figures have risen during the past 5 years, there has been a corresponding decline in bankruptcies, indicating that more people are looking at a debt agreement to avoid full bankruptcy.
Figures released by the AFSA today for the December quarter 2012 maintain this trend. They are as follows:
- Total personal insolvency activity:(7,845) increased by 1.91% against the December quarter 2011 (7,698): a decrease of 4.27% on the September quarter 2012 (8,195).
- Bankruptcies: 5,259 new bankruptcies in the December quarter 2012, a decrease of 5.63% against the December quarter 2011 (5,573) and a decrease of 7.59% on the September quarter 2012 (5,691).
- Part IX debt agreements: 2,510 new debt agreements in the December quarter 2012: the highest number on record for a quarter. In the December quarter 2012, the number of debt agreements increased 23.52% against the December quarter 2011 (2,032) and increased 3.63% on the September quarter 2012 (2,422).
- Part X personal insolvency agreements: 76 new personal insolvency agreements in the December quarter 2012, a decrease of 18.28% against the December quarter 2011 (93) and a decrease of 7.32% on the September quarter 2012 (82).
If you want to find out how a debt agreement can help you avoid bankruptcy, we can help. You can speak to our team of debt experts on 1800 676 598. The field of personal insolvency is complex so only speak to an expert that you can trust.