Understanding your Debt Agreement

How do I find my Debt Agreement outcome?

After your Debt Agreement proposal has been submitted to Australian Financial Security Authority (AFSA), your creditors will have 20 business days to vote on it.  AFSA are responsible for sending out your proposal to all of your creditor and they will also collate the results. AFSA will then notify you by written notification of the outcome.

What happens after my Debt Agreement is accepted?

After your Debt Agreement has been accepted by your creditors, you will be bound by the terms contained within your Debt Agreement proposal.

What this means:

• All payments to your creditors will be managed by your Debt Agreement Administrator;
• All creditors who are listed in your Debt Agreement proposal, will receive a dividend from your Debt Agreement Administrator (on your behalf);

• Your Debt Agreement Administrator will advise your creditors of your Debt Agreement start date and your AFSA administration number.

• Your Debt Agreement Administrator will handle all enquires from your creditors;
• Interest on your debts will be frozen at the time your Debt Agreement proposal is accepted by your creditors.
• You other assets (such as a house or case) will be protected whilst you are in a Debt Agreement and you continue to make your contractual payments. If you do not keep up with repayments to creditors, they may be able to repossess assets which are secured (Such as your house or car).

When does my Debt Agreement end?

The length of your Debt Agreement will vary depending on several factors (including the level of your debt, your income and your household expenses). A Registered Debt Agreement Administrator will help you tailor a Debt Agreement proposal to suite your circumstances.

At the Debt Agreement Advice Centre we focus on helping Australians to set up affordable and sustainable Debt Agreements to help you get out of debt.

If you 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.