The consequences of entering into a Debt Agreement can affect different people in different ways, with some people barely noticing any changes at all. If you are running your own business, though, the consequences will be more pronounced, and you must ensure that you understand them fully and seek professional advice before deciding to enter into one.

The first thing you need to be aware of is that lodging a Debt Agreement will put a mark on your credit file for seven years. Depending on how you are running your business, this could affect the way in which you obtain goods and services. In addition, if you need to incur debt over a certain amount, or obtain goods and services over a certain amount you must disclose the fact that you are subject to a Debt Agreement.

You will also need to disclose the Debt Agreement to anyone you are doing business with, unless you are trading under your own full name. If you require a licence for your trade, you should check with the relevant association to make sure that it will not be affected by a Debt Agreement. There is, however, an advantage to entering into a Debt Agreement as opposed to another arrangement such as a Personal Insolvency Agreement or Bankruptcy, in that you are able to continue acting as the Director of a company.

If you are running a business and are considering putting forward a Debt Agreement Proposal, you should speak to a professional first and make sure that you are making the right decision. You will need to ensure that your business structure will continue to work under a Debt Agreement, and that any business assets you own will not be at risk. Here at Debt Agreement Advice Centre we have friendly, trained consultants who can advise you on whether or not a Debt Agreement is the right choice for you, without pressuring you into a solution which may end up doing more harm than good. Call us today on 1800 653 485.