Can I Keep My Car If I Enter into a Debt Agreement?
When you enter into a Debt Agreement, it does not automatically mean that you will have to sell your car, depending on your situation.
What if I own my car outright?
As long as you disclose the true value of your car in the Debt Agreement Proposal, then you will be able to keep your car when you enter into a Debt Agreement.
What if my car is leased?
If your car is under finance and is leased, then it will depend on your leasing company. However, most leasing companies allow you to keep your car as long as you keep up to date with the lease payments.
However, if you are unable to sustain your payments, then the leasing company will repossess the car.
What if I want to sell my car while in a Debt Agreement?
If you wish to sell your car while being in a Debt Agreement, you are free to do so.
However, if your car is leased, it is unlikely that you will be able to lease another car until the Debt Agreement is successfully completed.
Will a Debt Agreement protect my car?
One of the major advantages of entering into a Debt Agreement and granted that you fully comply with the terms, is that your creditors will be unable to take any further recovery action against you, meaning that your car is protected.
How it compares to Bankruptcy
In comparison to Bankruptcy, a Debt Agreement increases your likelihood that you will be able to keep your car. In Bankruptcy, you will only be allowed to keep your car if it is valued at less than $7,800. If it is worth more than this, then you will need to surrender your car to your Bankruptcy Trustee who will sell it and give you back the protected $7,800. Anything made over this amount will be kept by the Trustee for the benefit of your creditors.
If you would like to learn more about Debt Agreements and whether it is the right solution for you, please contact DAAC on 1800 653 485. Our friendly and professional consultants will give your FREE expert advice customised to your situation. We operate a toll-free, 27/hotline so there will always be someone on the other end to speak to you.
