Hi, A Debt Agreement is a legally binding agreement under the Bankruptcy Act of Australia. Debt Agreements can be an alternative to bankruptcy. A Debt Agreement is a legal offer by you to your creditors to make repayment of debts based on what you are able to afford. Repayment period is usually 2 to 5 years. If the Debt Agreement is accepted by 50% or more of the creditors in $value then it stops further demand for payment of those debts. Interest is frozen and the debt will not be charged any further interest. If the offer is not accepted then the creditors have the right to continue pursue you for payment of debt and interest.
your Responsibilities Under a Debt Agreement -
* Full disclosure of all debts
* Full disclosure of all your income
* Full disclosure of all assets
* Make monthly repayments as provided by in the Debt Agreement
* What are the Costs of setting up Debt Agreement?
* No Fee for initial consultation.
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