Part 9 Debt Agreement Basics
A part 9 debt agreement is a formal agreement between you (the consumer) and your creditors. These aren’t your average agreements — instead, they’re governed by legislation, which means once you and your creditors agree you’re both bound by the government. Debt agreements are your low-cost option to avoid bankruptcy — especially if you have limited income and no personal assets to liquidate. As long as your debt amount doesn’t exceed $100,664.20 and your personal, annual income is below $75,498.15, you can qualify for a part 9 debt agreement.
You should only use this form of debt help under the direction of a trained professional, like Australian Lending Centre. Our specialists can propose a part 9 debt agreement with your creditors and file it with the Insolvency and Trustee Service Australia on your behalf. From there, ITSA contacts creditors listed in the agreement to see whether or not they agree to your proposed payment plan.
If you find yourself struggling to manage your debts, the friendly team at Australian Lending Centre can give you the information you need to see if a debt agreement is right for you. Contact a specialist today by calling 1300 138 188 or Apply Now!
Why Use a Part 9 Debt Agreement?
If you are in need of debt relief, a part 9 or government debt agreement is a cost-effective alternative to traditional bankruptcy. In comparison to the costs and long-term effects of filing for bankruptcy, a part 9 debt agreement can:
- Stop interest from accruing on any debts you owe;
- Assign an administrator to negotiate with creditors and communicate on your behalf — lessening the pressure of dealing with creditors;
- Limit the damage done to your credit file;
- Give you a convenient, single payment rather than multiple payments;
- Write off debts at the end of your repayment plan;
- Get out of your unsecured debt obligations without filing bankruptcy;
- Stop creditor harassment and cease any legal actions against you;
- Organise your debts into an affordable repayment plan.
Part 9 Debt Agreement Australia Wide
Too many Australians file for bankruptcy when they only owe less than $10,000 in consumer debt. Rather than tarnish your credit file, consider the use of a Part 9 Debt Agreement. Contact a specialist at Australian Lending Centre to see if you qualify. We can tell you right away from your income and personal debt to see if you are a suitable candidate for debt relief through ITSA. Call a specialist today at 1300 138 188 or Apply Now!
*Amounts saved, if any, are dependent on your individual circumstances at the time you enter into a debt agreement