To enter into a Debt Agreement, you need to propose a payment plan to your creditors. Your creditors then have a choice to accept or reject your proposal. There is no guarantee that your creditors will accept it.

So what happens if my debt agreement is rejected?

If your debt agreement is rejected, your creditors are free to pursue you for your debts.

Your Debt Agreement Administrator will get into contact with your creditors to identify the reasons why and if they are open for a resubmission.

If so, then you will be able to submit a new application that they may consider following their feedback.

Another crucial note that you should know is that Debt Agreements are governed by the Bankruptcy Act and so submitting a proposal and committing an Act of Bankruptcy.

After rejecting your application, your creditors can then use your proposal to apply to the court to make you bankrupt.

This is why it is important to seek professional advice to determine whether a Debt Agreement is the best option for you and how to create a proposal that your creditors will most likely accept.

At Debt Agreement Advice Centre, we focus on helping Australians create and proposal Debt Agreements, so we have really cultivated our knowledge, skills and experience in this area.

If you are wondering whether a Debt Agreement suits your needs or need professional assistance in creating a proposal, then please contact the experts for a FREE initial consultation on our toll-free hotline – 1800 653 485.