A Debt Agreement is a debt solution designed for those experiencing financial distress. It is a formal agreement in which you propose to pay back your creditors an agreed sum over a certain period of time. After the Debt Agreement ends, your provable debts are extinguished and creditors cannot take any further action against you or chase you for any outstanding payments.
A Debt Agreement may seem like a great way to clear out your unpayable debts, however, it is important to note that not every debt can be included.
In order for a debt to be included in a Debt Agreement, it needs to be a “provable debt”. Provable debts are debts that would be cleared if you were to go bankrupt, or enter into a Debt Agreement or Personal Insolvency Agreement.
Provable debts include:
- Personal credit card debts incurred before administration
- Personal loans incurred before administration
- Utility payments, including electricity or phone fees
- Medical fees
Debts that are not included in a Debt Agreement are called “non-provable debts”. These are debts that you still must pay even if you enter into a Debt Agreement.
Some examples of non-provable debts are:
- HECS debts
- Court imposed fines
- Student loans
- Debts incurred by fraud
- Child support
- Debts incurred after administration
If you would like more information, the debt consultants at the Debt Agreement Advice Centre are experts on Debt Agreements. With a success rate as close to 100% as you can get, you know you can trust us to give you the right advice.
You will not incur any fees from us until we have conducted a full financial assessment and believe that we can help you, with the lowest price guaranteed.
If you would like advice on a Debt Agreement, please call us on our 24 hour free advice line today – 1800 653 485.
