Some of the biggest fears of filing for bankruptcy can be the fact that you may be left with nothing and a lack of security and safety. There are some major benefits to entering into a Debt Agreement which can mean your most needed assets will remain safe.

Keeping Your House
An advantage of a Debt Agreement is that you will be able to keep your house as long as long as you disclose it to your creditors when you set up your Debt Agreement and you comply with the terms of your Debt Agreement.

Keeping Your Car
Entering into a Debt Agreement will not mean that you will have to sell your car. If you want to keep your car all you need to do is to simply keep paying the lease payments in the ordinary course. If you own a car outright then you will be able to keep it.

Keeping Leased Assets
If you have negative equity in the lease at the time that you enter into the Debt Agreement, the leasing company would be entitled to claim for dividends from your Debt Agreement for the “estimated shortfall”. This may affect the estimated dividend to your unsecured creditors.
One of the major advantages of entering into a Debt Agreement compared to bankruptcy is the protection against any legal action or proceeding your unsecured creditors may wish to take. Your unsecured creditors will be prevented from filing bankruptcy proceedings against you or obtaining any type of writ against your assets. Given that you fully comply with the terms and conditions of your Debt Agreement (i.e. you make the payments as required) you will be legally protected.
 
At Debt Agreement Advice Centre, we have years of experience in helping Australians enter into a Debt Agreement and protect assets such as their house. If you would like to find out more information and see how we can help you, please call our friendly Debt Agreement consultants at DAAC for expert advice debt consultants for expert advice on 1800 653 485 (toll-free).