Formal Debt Agreements
A payment option to deal with unmanageable debt as an alternative to bankruptcy.
Formal Debt Agreements
A suitable alternative to bankruptcy at reduced debt repayment.
Avoid bankruptcy with a IX Debt Agreement
This type of insolvency payment arrangement is a legally binding contract between you and your creditors and is called a Part IX Debt Agreement.
With this option, Debt Cutter complete a concise budget for you based upon your income, expenses, and debts to ensure this option is a sustainable solution.
Once we work out with you what is affordable to repay over the term of the agreement, this is then proposed to your creditors, and they vote upon it. If accepted, it then becomes legally binding on all applicable creditors.
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Debt can be incredibly
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have to be.
Advantages of a Part IX Debt Agreement
A Debt Agreement Proposal is often for less than the balances of the current debt, so you pay less than what you presently owe over the term of the agreement.
Your creditors must legally stop contacting you once accepted.
All interest and fees on the debts stop.
It includes all provable debts (ask us what this means)
You have one affordable repayment which is made to Debt Cutter.
The Administration and Government costs of being in a Debt Agreement are included in the affordable payment proposed.
Do you qualify for a Part IX Debt Agreement?
Talk to one of our consultants to see if you are eligible for this solution
What is a Part IX Debt Agreement
A Debt Agreement is payment solution for a term of up to 3 years unless you are a homeowner in which case it can be proposed up to a length of 5 years.
A Debt Agreement is finalised after you have made all the payments required under it, but importantly it is only proposed on what you can afford. Once finalised any remaining balances on the debts within the Debt Agreement are waived.
Understanding the consequences
The Part IX will be listed on your credit file and the NPII index for a minimum of 5 years.
It may affect your ability to obtain new credit.
A debt agreement is an act of insolvency under the Bankruptcy Act.
You are required to disclose you are in a Debt Agreement if you are self-employed in certain circumstances or if you apply for credit (or similar) above set thresholds.