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Are you feeling lost in your financial life? Do you feel weighed down by your debt to the point where you can't begin to figure out what to do? The best thing you can do is educate yourself and figure out what your next move is. Today we will be breaking down a Debt Agreement and whether you might be eligible for one.

debt afford agreement

What is a Debt Agreement?

A debt agreement is a formal plan that enables you to pay down all of your debts by paying an amount of money you can afford each month. A debt Agreement does not include taking out another loan. After securing a Debt Agreement, interest will be frozen on your existing debts so they will not incur any more. You will then negotiate a payment plan that will have you paying an amount you can afford each week, fortnight, or month.

debt agreement

Can I obtain a Debt Agreement?

Debt Agreements are suitable for people who:

  1. Are struggling to pay their debts and have fallen behind on payments
  2. Want to settle their debts
  3. Cannot get a loan
  4. Have not declared bankruptcy in the past 10 years
  5. Earn less than $85,012.20 per year after tax
  6. Own less than $113,349.60 in individual assets
  7. Owe less than $113,349.60 in unsecured debt

Is a Debt Agreement the same as declaring bankruptcy?

Someone who enters into a Debt Agreement is not declaring bankruptcy, but is committing an act of bankruptcy. This means that if the creditor does not accept your Debt Agreement, they can appeal to the court to call for your to declare. Similar to bankruptcy, entering into a Debt Agreement will affect your ability to take out a loan in the future. Details of your Debt Agreement will be kept for at least five years, and longer in some cases, meaning your ability to borrow money will be inhibited for this period. Details of your debt agreement including some personal information will appear on the National Personal Insolvency Index (NPII) for a minimum of five years. In short, Debt Agreements are not identical to declaring bankruptcy, but do have some similar attributes.

agreement creditor

How can I obtain a Debt Agreement?

Beyond Debt offers Debt Agreements to those who qualify for them. To begin the process, call one of our consultants who will assess your financial situation over the phone. Following the assessment, an agreement will be drawn up to propose to a creditor. The creditor will then accept or reject the agreement, however most Beyond Debt agreements are accepted. After acceptance, the agreement is binding, and you will begin making payments. Contact us or check our website for more information.

 

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