Debt Agreement

When someone is facing mounting debts, one immediate assumption is that bankruptcy is the only option. However this is not always the case. In fact, Insolvency Options considers this to be the last resort.

A Debt Agreement is a preferable option over bankruptcy, for all parties involved. A Debt Agreement is a legally binding agreement between you and your creditors to settle your debts. The Insolvency Options team is qualified to act on your behalf and repay a negotiated percentage of the debt owed to creditors. This percentage is dependent on what you are able to afford over a fixed period of time. Once the payments and period of time has ended, you are released from your financial obligations to those creditors.

There are eligibility requirements in order to enter into a Debt Agreement. The eligibility is determined on the amount of combined debt owed, your assets and your income. If you have been bankrupt, had a previous debt agreement or a personal insolvency agreement within the last 10 years, you will be ineligible.

Call our friendly team on 1800 463 328 to see if a Debt Agreement is right for your situation.

Most types of insolvency come with consequences. It is important to speak to our team about the benefits and consequences of each option. By entering into a Debt Agreement, it may affect your credit score (with credit bureaus) and your ability to apply for credit in the future.

A record of the Debt Agreement will also be recorded and listed on the National Personal Insolvency Index (NPII). This NPII is a public and permanent record of all personal insolvency proceedings in Australia.