There are many different options you can pick when it comes to servicing your own personal debts. Individuals are often conflicted in whether or not they should enter into a debt agreement or declare bankruptcy. There are some important things you should know to help guide your decision.

Bankruptcy is primarily chosen when you have a large number of unmanageable debts that you cannot service. Declaring bankruptcy can potentially result in the selling of some of your assets (home). However, if you still have a job that provides you with a stable stream of income, a debt agreement can be a more suitable alternative, as it is an agreement for you to pay a percentage of your total debts.

Furthermore, when you set up a debt agreement you will pledge a specific amount (which will be based on what you can afford). In comparison to Bankruptcy you will lose any assets over the protected values and you will be subject to a yearly income contribution assessment which means you may need to pay compulsory contributions from your salary into your estate.

In order to choose a debt agreement, there are certain limits of income and debt that need to be met. It is best to consult with one of our professionals today at the Debt Agreement Advice Centre as these thresholds change every six months. We have years of experience in helping Australians setting up and completing debt agreements. 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).