All About Debt Agreements
Debt agreements are unique but comparable to personal insolvency agreements. If you are in a financial difficulty and you can’t pay your debts, you might consider a debt agreement. There are some great reasons to apply for a debt agreement and some details you need to know before proceeding.
With a debt agreement, there are different steps to follow. The debtor must file a debt agreement proposal (DAP) with the Australian Financial Security Authority (AFSA). The DAP provides creditors with a debt repayment plan which usually runs over 3 years.
The great news about a debt agreement is that the debtor can propose how much to repay based on affordability. It will of course be subject to creditor approval.
If payments are made on time, as agreed, the unpaid debt will be forgiven once the agreement is fulfilled.
A debt agreement is more flexible and less intrusive than bankruptcy and is suited to people who want to protect their house or other assets from being sold.
For more information and assistance with debt agreements, Debt Free Australia can assist you. Contact us at 1800 676 598 or feel free to visit our website. We look forward to helping you with your debt repayment plans and answering your questions.