Suppose you have an unsecured debt totalling $35,000 and you can afford to offer $125 per week to your creditors for 260 weeks, or $32,500. If the creditors accept your proposals, they also appoint us with the management of your debt contract and accept that we can keep part of the repayment for the contract management work. The amount we withdraw will be deducted from the $32,500 and it is not an additional amount or extra you pay. A debt contract has a term of 3 years, but the term can be up to 5 years if you own a house. Debtors will be discharged from most of their debts after the completion of all payments and obligations arising from the agreement. Yes, your creditors have the right to reject your proposed debt contract. It is important to make all your income, debts and assets known. There is no guarantee that the creditors will accept your proposal. This means that all recovery (or contemplated) actions on your unsecured claims will cease. Their creditors are paid under the debt contract. Once your contract is over, most of your debts will be discharged and you will no longer have to pay them.
Be aware that you may still have some debts to pay. A Part 9 debt contract only affects your demonstrable unsecured debts (and interest). If you want to consolidate your debt and have already tried a consumer lender, consult a financial advisor to discuss other options. A debt contract is an insolvency contract under the Bankruptcy Act. It`s an act of bankruptcy. It should only be considered as a last resort. We help you organize the debt contract and keep you on track, depending on your financial situation, the organization of a debt contract may be inevitable. If we have completed a full financial analysis and come to this conclusion, we can help you conclude a formal debt contract. In fact, we can manage everything to make your life less stressful than it already is if you wish.
They will be able: while debt agreements still have negative financial consequences; they may be a better alternative to the declaration of insolvency. However, debt agreements are a solution that should only be considered in times of extreme debt. Debt negotiators can help you reach a debt agreement and pay off your debts to creditors. Contact us today for advice or to arrange a consultation. What will happen to my secured debts, such as my car loan and mortgage? It is important that you have a complete and complete understanding of the debt implications of the agreement and all the other options available to manage your debt.