Posted on October 14, 2021
If, after considering your options, you decide that a debt contract is the best choice, you must appoint a duly qualified director or registered trustee (“trustee”). You can no longer manage your own debt contract yourself. These services are subject to a fee. If your situation has changed in any way, you have the right to re-apply for a debt agreement. At Debt Busters, we have a long-standing relationship with creditors. Our positive reputation and experience will give you a chance to fight, even if your initial proposal was rejected. As long as the majority rating, i.e. 50.01% of the dollar amount of creditors who choose to vote and who have the right to vote, accepts the proposal, it is legally binding on all creditors. Even if your proposed debt deal was rejected, you will not lose hope. You can always get all these benefits by summarizing the help of a qualified debt professional. Debt Busters experts have over 10 years of experience helping Australians from all walks of life overcome their debt once and for all. In addition, it must be decided that your proposal is in the best interest of creditors.
Once your proposal is processed, your creditors will have 35 calendar days to vote on the proposal. The last day of this period is called the deadline, and all your creditors for your unsecured debts have the right to choose. A person who wants to avoid bankruptcy and has income, debts and assets below a legal limit can present a debt contract of up to three years or five years if you own your own home. With over 10 years of experience, Debt Busters has built a highly respected reputation in the credit and debt contract industry. We have supported our clients with debt relief solutions and our experience is reassuring for clients and creditors. Let`s say you have unsecured debt totaling $35,000 and you can afford to offer your creditors $125 a week for 260 weeks, or $32,500. If the creditors accept your proposals, they will also appoint us for the administration of your debt contract, agreeing that we may withhold part of your repayment for the administration of the agreement. The amount we withhold will be deducted from the $32,500 and is not an additional amount or fee you paid. A debt agreement is just that – a mutual agreement between you and your creditors.
Sometimes the repayment terms for creditors are not considered sufficient and your proposal is rejected. In this case, you will need to resubmit a new proposal based on these comments. AFSA may require information about the debtor`s financial situation or assets to ensure that monetary limits are respected. AFSA does not have the discretion to change monetary limits, even by a small amount. This is just a brief guide and it is recommended that you speak to a financial advisor to discuss the best option for you in your situation. See Fact Sheet: Debt Brokers and Fact Sheet: Getting Help for a list of additional resources. A debt contract is not a consolidation loan and does not necessarily cover all debts. For more information on covered debts, visit the Australian Financial Security Authority (AFSA) website. A person or organization called the administrator of a debt contract would help you propose the deal and then distribute your repayments to your creditors. .