A Part IX debt contract is a legal agreement with your creditors to repay your debts at a reduced rate that you can afford. This is a binding agreement for both parties, which falls under Part IX of the Bankruptcy Act. That doesn`t mean you`re going bankrupt. Professional advisors and debtors are asked to seek appropriate advice on their living conditions. This consultation must be provided by qualified specialists. Too often, we hear about debtors seeking advice from organizations that we believe are not acting in the best interests of the debtor. At Worrells, we offer all insolvency benefits, including debt contracts (part IX), private insolvency contracts (part Xs) and bankruptcy, which is why we always provide appropriate advice based on the debtor`s circumstances. Unfortunately, there are no quick fixes to managing uncontrollable debt. Filing for bankruptcy involves many requirements and restrictions, such as the sale of assets by an agent, monitoring your income, losing certain commercial licenses and abandoning your passport, your credit score is a great success (to name a few). Through a debt contract, you are in principle asking your creditors for a fair path by offering them your best offer. In this way, you can keep assets with shared equity up to the value of the asset limit (more information – contact Safe Debt Management). You will not have your income monitored and you will not have to hand over your passport. Bankruptcy is the formal process that they are declared unable to pay your debts.
We believe that any reform should strike the right balance for creditors to take into account their interests, to recover their losses, and that debtors are certain of their financial well-being. At Worrells, we explain the effects of all private insolvency solutions, including the review of a bankruptcy agreement. There are a number of factors that influence how debtors are influenced by their decisions. For example, if you are unable to repay your debts, you may want to consider bankruptcy or an alternative to bankruptcy called the “debt agreement.” These are formal legal options that are available under the Bankruptcy Act 1966. According to 9news` article “The government is looking for an alternative to bankruptcy,” says Attorney General Christian Porter, the reform is a response to debt agreements operated by the debt contract industry. In addition, we manage all payments for you once your agreement is activated. We make payments to your creditors quarterly for the duration of your agreement with the funds you contribute to our trust account. We`ll also send you quarterly progress reports so you can see what you paid and what you still have to pay to be debt-free! If you are struggling with debt, a debt contract may be the right solution for you. Safe Debt Management aims to improve your life and can help you get out of debt. Warning: it is a crime if you are bankrupt or if you are subject to a debt agreement to obtain credits or try to obtain credits in certain circumstances. These offences are subject to severe penalties. Once you paid the agreed amount, you paid that debt.
A debt contract is not the same as a debt consolidation loan or informal payment agreements with your creditors. The new worrells report on insolvency: 2018 shows that bankruptcies as a solution in Australia are steadily decreasing.