Is a Part IX Debt Agreement right for you?May 20, 2020
What debts can be included under a Debt Agreement?May 20, 2020
Debt Agreement Pro’s
- Certainly, debt agreements are an alternative to full bankruptcy.
- Above all, interest on your unsecured debts are frozen. As a matter of fact, only the principal plus establishment fees are paid.
- In addition, your creditors cannot pursue you legally for recovery of the money owed.
- Above all, you can apply for multiple household debt agreements to reduce the overall household debt.
- Finally, if you have property equity within the equity threshold, you can retain your property.
Debt Agreement Cons
- Firstly, they will affect your ability to get credit.
- Above all, secured assets are not included under a debt agreement. Therefore you are still obligated to make those payments. As such, if you cannot make the payments, the lender can repossess your assets.
- However, if you run a business, you need to inform your clients that you are under a part 9 debt agreement.
- Keep in mind; some employment industries restrict employment for people under debt agreements.
- Finally, if you are unable to keep the payments on a Part IX debt agreement, you may be made bankrupt. Since simply applying for a debt agreement is an act of bankruptcy. As such, your creditors can apply to make you bankrupt.