If you are under the constant stress of not being able to repay your debts when they fall due, a Debt Agreement may be the best option for you. A Debt Agreement is a formal arrangement whereby you –the debtor – can come to a mutual agreement with your unsecured creditors as to how your debts will be repaid. Because this is a legally binding agreement, creditors cannot then change their minds further down the track.
Proposing a Debt Agreement is technically referred to as an act of bankruptcy, however it is a very different arrangement to bankruptcy and offers more flexibility with fewer negative consequences. A Debt Agreement gives you ample time to settle your unsecured debts whilst also giving you a foreseeable end to being in debt.
Debt Agreements are a good option to relieve yourself of all the stress that accompanies debt repayments. Those who have previously entered into a Debt Agreement would likely tell you that the protection from harassment by their creditors was just as relieving as the settlement of their debts. In saying this, a Debt Agreement can have significant consequences for you, both financially and personally. It is highly encouraged that you consult with an experienced professional to ensure that you are fully informed and confident in the choice you have made.
Debt Free Australia (DFA) can provide you with all the professional help and advice that you need. DFA’s expert consultants will assess your personal debt situation, advise you on all of your debt solution options and assist you in determining the most appropriate course of action, whether that be a Debt Agreement or an alternative arrangement.
To receive a free consultation with a DFA insolvency specialist, contact us on 1800 676 598 or fill out an online enquiry form here.