A debtor who proposes a debt contract commits a bankruptcy. It is not the same as a bankruptcy. A debt contract is an alternative to bankruptcy, but as it falls under Part IX of the Bankruptcy Act, the proposal of a debt contract is considered a bankruptcy deed. As a general rule, fines are not demonstrable misconduct. This means that you must continue to pay them outside of your contract. A person can propose a personalised insolvency contract if certain conditions are met: if you have a tax debt with the Australian Taxation Office (ATO), it can be added to your PIA. However, any refunds you receive can be withheld by the ATO. A debt contract is not the same as a debt consolidation loan or informal payment agreements with your creditors. Note that if your debts relate to rent or utilities, your creditors may ask you to change suppliers (for suppliers) or, in case of rental debt, your landlord may ask you to move. A debtor usually uses a personal insolvency contract for: A private insolvency contract remains on your credit register for a period of five years or more, if it takes longer for the contract to be concluded. A private insolvency contract is just one of the many debt solutions available to you if you feel deeply indebted. You should get free financial advice to help you assess your current financial situation and consider your options.
Debt negotiators are there to help. We passionately help you find a way to gain financial freedom and teach you how to preserve that freedom by changing your spending habits. We start with a free debt assessment that will help us identify your current situation and determine which alternative debt relief options would be appropriate for your individual situation: these formal options can free you from debt, but have serious long-term consequences. You may influence your career and your ability to obtain loans or credits in the future. Once a debt contract has been accepted by your creditors, it becomes a legally binding agreement. You must start with the repayment, which is stipulated in the agreement from which your creditors receive dividends. While the agreement is in effect, the interest on your unsecured debt will be frozen and no enforcement action can be taken against you or your property. Once the terms of your debt contract have been signed, you will be free of any unsecured debt included in the agreement. The majority of creditors and more than 75% of the value of the creditors present and voting must vote in favour of the adoption of this special decision. If the proposal is not adopted by the required majority, creditors may decide that the debtor is bankrupt himself.