Are you facing insurmountable debt, but don’t know which is the best solution for you to take?

There are various debt solutions available for individuals struggling with mounting debt and endless calls from creditors. Informal options include negotiating with your creditors or seeking advice from a lawyer, accountant or a financial counselling service. Formal options include bankruptcy, Personal Insolvency Agreements and Debt Agreements

A Debt Agreement is a binding agreement under the Bankruptcy Act 1966 between a debtor and their creditors, whereby creditors agree to accept a certain amount of money that the debtor is able to afford as full and final settlement.

Wondering what the advantages of Debt Agreements are compared to the other solutions?

Debt Agreement advantages include:

• A Debt Agreement is an alternative to bankruptcy, which has more serious and long lasting consequences.
• Debt Agreements have extra protection for debtors that are not offered by private or informal arrangements.
• Debtors are released from most of their unsecured debts when they complete all payments and obligations under the agreement.
• Under Debt Agreements, the rate of payment to all creditors is the same.
• In bankruptcy, the appointed trustee is required to conduct an annual income assessment to see if they have become liable for compulsory income contributions. An advantage of a Debt Agreement is that there is no required yearly assessment, meaning if you get a higher paying job, you will be able to save more money.
• A further Debt Agreement advantage is that you are free to travel overseas, whereas a bankrupt must request permission from their trustee to travel.

Even with the Debt Agreement advantages laid out, the decision to undertake such an agreement is a serious one and requires much consideration. You need to be realistic about your situation and consider all the options carefully before you make the final decision.

That’s where the financial counsellors at the Debt Agreement Advice Centre can step in to help. Our licensed and qualified debt advisors can provide you with trusted advice based on your individual situation to see if a Debt Agreement is really the best solution for you. We will not force you into a Debt Agreement if it is not the most beneficial option for you.

If you are in a financially distressing situation, it is possible that you have started to explore your options. However, sometimes it can be difficult to decipher the differences between the ranges of choice provided to you, the pros and cons for each one and which options would best suits you.

Here, we talk about the difference between a Debt Agreement and Bankruptcy,

A Debt Agreement is a formalised arrangement established between yourself and your creditors where you can repay your debts over a period of time. Usually, creditors agree to receive less than what they owe.

In comparison, bankruptcy is a process in which someone declares that they cannot afford to repay their debts. By doing so, it is mandatory that they surrender their assets, unless they are protected or are necessary household items.

Bankruptcy means that you will be subject to various limitations,, some of which mayhave a significant impact on your life.

Some of these limitations include not being able to travel overseas unless permission is granted and not being able to own a home. There is also a threshold to the value of assets you own such as jewellery, art and antiques.

On the other hand, a Debt Agreement does not have as many strict limitations as bankruptcy. In addition, it will discharge you from any unsecured debts at the end of the Debt Agreement.

With a Debt Agreement, you will be able to travel overseas, have the ability to act as a Company Director, and you will not be required to have a thorough examination of your books and records.

If you would like more information on Debt Agreements or any other alternative to Bankruptcy, then please contact our friendly and professional debt consultants on 1800 653 485.

When you propose a Debt Agreement, you have the choice of putting the agreement forward yourself or appointing a registered Debt Agreement Administrator to assist you in the negotiations.

While it is possible to do it on your own, the process of filling out the Debt Agreement forms correctly and handling negotiations with your creditors can be exhausting and harrowing. Having a professional Debt Agreement Administrator is very advantageous as they can help with moving the process along and with finding the best possible solution for you whilst still keeping your creditors happy.

Have experience

A Debt Agreement Administrator is a professional debt negotiator. Having an administrator assigned to your case means that they will be able to offer you advice that is tailored to suit your specific personal circumstance. Your Debt Agreement Administrator will be able to use their expertise, knowledge and experience to help create an agreement in which both parties are happy and satisfied.

Apart from professional and experienced advice, another advantage of Debt Agreement Administrators is that they will give you something that you may not be able to get otherwise – a new perspective. Having someone from the outside come into the picture, who still holds your best interests at heart, means that you may be able to see things from a different point of view that you probably were not able to see before. Having a fresh outlook could also free you from any subjective thoughts and feelings about your Debt Agreement proposal and put things in a fresh perspective. It basically gives you more options and a clearer mind when negotiating with your creditors.

Professionals vs. professionals

Dealing with creditors is a stressful experience. Keep in mind that creditors are professionals in what they do, and unless you are a professional Debt Agreement Administrator yourself, it can make for an unfair playing field. Having a professional  on your side can really assist in the negotiations, as well as increase the chances of producing a satisfying outcome for both parties.

Relieve stress

Apart from helping with the negotiations, Debt Agreement Administrators also help with alleviating the amount of stress on your shoulders. Creditors constantly calling your phone and trying to contact you every day can really take a toll on you, which is why enlisting a Debt Agreement negotiator is advantageous. A Debt Agreement Administrator can relieve you from any harassment from creditors, giving you peace and quiet.

Completes administrative tasks

Proposing a Debt Agreement takes a lot of hard work, and with that, a lot of paperwork. While AFSA can provide you with the appropriate forms to complete independently, it can be difficult to fill them out correctly or know what they are asking you to provide. A Debt Agreement Administrator can help organise the dreaded paperwork and other administrative work that is long, tedious and time consuming.

Looking for a professional Debt Agreement Administrator?

At Debt Agreement Advice Centre, we have a reputation for being professional, knowledgeable and experts in Debt Agreements, with a success rate close to 100%. If you are looking for a licensed and trustworthy Debt Agreement Administrator with the expertise and knowledge to help you with your financial difficulties, then call our friendly and professional debt consultants on 1800 653 485.