Debt Agreements And How They Can Work For You

Are you struggling to pay your bills each month?  Are your interest charges on credit cards and loans making it more difficult?

A debt agreement may help reduce your costs and help you make your payments more easily.

There are different types of debt agreements options available to you. The main ones being either informal or formal under the bankruptcy act 1966.

Informal Debt Agreements

If your situation is suitable to this option, we will negotiate arrangements with your creditors (the people you owe money) to make it easier for you to repay your debts.

Sometimes your creditors will agree to accept a lesser amount than the total owing. We may also be able to help you consolidate your debts to achieve lower monthly payments.

These arrangements could help you to get your finances back in order and on the path to being debt free once again.

Formal Debt Agreements

If you are not able to take advantage of the informal options then you could pursue a part 1X debt agreement. This is the better option when you are insolvent; i.e. not able to meet your payments.

These formal arrangements are available to you under the bankruptcy act 1966.

Once your unsecured creditors are advised that you wish to propose a formal debt agreement with them, they cannot proceed with attempts to seize assets or recover debts for a period of 21 days.

You will require a registered debt agreement administrator to help you prepare and present your debt agreement to creditors. Once we have done this and your creditors agree with the proposal, you can begin your process to get out of debt.

Please note that entering into a debt agreement is an act of bankruptcy and has important consequences. Please contact us to find out if a debt agreement is a suitable option for you.

It is important to take action

As you know, the longer you leave the situation as it is, the more you will get into debt. It’s important therefore to act soon. The sooner you contact us the better your chances of being approved for a debt agreement and avoiding bankruptcy.

When you arrange your free consultation with us, we will learn more about your situation and discuss your options. We will also be able to tell you if you qualify for a debt agreement and which option will be best for you.

Book your free consultation now and find out if you qualify.