Debt Agreement Information

Introduction

A Debt Agreement is all about providing a solution to people who are (1) experiencing difficulties in meeting their financial commitments, but (2) do not want to enter into bankruptcy.  Debt Agreements allows them to repay their debts at a level they can NOW afford and this makes all the difference. People thus maintain their dignity. We find most people do wish to take this honourable course. Debt Agreements are covered by Government Legislation and all stages of the process need to be approved by the Government.

Debt Agreement Summary

• Like a debt consolidation loan. It consolidates all your individual debts into the one pool of debt. These debts need to be unsecured debts, e.g. Credit Cards, Personal Loans, Overdrawn Bank Accounts, Store Cards, Repossessed Cars, Old Electricity/Gas Accounts (previous addresses), Disconnected Telephone/Mobile Accounts, School Fees, Childcare Fees, Old Foxtel Accounts, etc.
• The legislation allows for you to make one easy, affordable weekly or fortnightly repayment that covers the new consolidated debt.
• This arrangement provides relief from creditors and any legal action is stopped including bankruptcy.
• When your Debt Agreement is approved, you will be charged no further interest on your debts and there is NO INTEREST charged on the debt consolidated either.
• Once your Debt Agreement has been fully paid out, this represents full and final satisfaction for creditors included in the agreement.

Debt Agreement Criteria

Of course, there are a number of criteria put in place by the government. In the main they are:

1. you cannot have a take-home pay (after tax income) of more than approximately $1,218.52 per week,
2. your unsecured debts cannot exceed $84,484.40 - approximately,
3. you cannot have assets of more than approximately $84,484.40 and
4. you cannot have been an undischarged bankrupt nor had a DA in place over the last 10 years.

These are the major criteria of significance.

Miscellaneous Matters

• The fact that you enter into a Debt Agreement will appear on your credit report with Veda Advantage and remain there for 7 years.
• All unsecured debt must be disclosed.
• Putting forward a DA proposal to your creditors is no guarantee that they will accept it. However, bear in mind that most Debt Agreement proposals are accepted and with those that are rejected, we then put forward a second proposal after working our way through the objections raised by those creditors who said no to the first proposal.
• Should your circumstances change after entering into a Debt Agreement and you wished to pay it out in full at some time in the near future or even increase repayments so you could finish earlier, there are no barriers or penalties put in your way.
• Please Note: To qualify for our debt agreement service, the total of your unsecured debts will need to be $8,000 or more.

[Bankruptcy] [Debt Consolidation] [Debt Consolidation Loans]