What is a Part 9 debt agreement?

What happens if my debt agreement is terminated?
May 20, 2020
Is a Part IX Debt Agreement right for you?
May 20, 2020

Part IX refers to part 9 under the bankruptcy act of 1966. Consequently, a debt agreement is a binding agreement between yourself and your creditors. Hence, the agreement is to repay the unsecured debts & avoid the need for full bankruptcy. Furthermore, debt agreements are intended for:

  • Firstly, low-income earners or fit within the income threshold.
  • Secondly, they are also struggling to pay their debts and fit within the debt threshold.
  • Finally, individuals committed to paying back their debt; therefore don’t want a full bankruptcy.

Debt agreements are a serious step to resolve your debt and should not be considered lightly. In particular, you should obtain independent advice regarding debt agreements. With this in mind, you can make contact with a financial counsellor or legal service to obtain advice. What’s more, see below links to the Money Smart Government website for information.

Financial Counselling

The government has strict policies and thresholds with regard to debt agreements. Hence, there are thresholds for:

  • Firstly, your individual income.
  • Then, the debt amount included under the agreement.
  • Thirdly, the assessed net property equity.
  • Certainly, there are many other policies related to your debt agreement proposals.

Loan Saver Network highly recommends speaking to a financial counsellor if you are considering a part IX debt agreement.