What is a Debt Agreement?

It is a legally binding financial agreement with all your unsecured creditors.  Once accepted, you will be released from your unsecured debts.  Your Administrator will manage your consolidated debt repayment schedule with your unsecured creditors. 

 

What are the benefits of a Debt Agreement?

You will make one weekly payment for all your unsecured debts, all interest will cease, any legal action from your creditors will cease. 

 

What fees do I pay PDS?

An establishment fee is payable to Professional Debt Solutions Pty Ltd for the application of your Debt Agreement this is payable as part of your payment plan.  It is worked out for your individual case.

 

Who is eligible?

A Debt Agreement can be proposed by any debtor who has not been bankrupt in the last 10 years, not applied or been accepted for a Debt Agreement in the last 12 months, after tax income of less than $61 875.45, unsecured debts of less than $82 500.60, and property value not exempt under the bankruptcy act valued at less then $82 500.60.

 

1. Assess whether you are deemed eligible

2. A PDS consultant will take you through an application form and work out a budget and repayment plan 

3. A Debt Agreement proposal is submitted to your Administrator who will in turn submit it to ITSA

4. Your creditors will vote on your proposal it will become a Debt Agreement once more than 50% of your creditors accept your proposal

5. When your Debt Agreement is accepted payments will be made weekly to your Administrator who will pay your creditors based on the agreed payment schedule

 

ITSA, Insolvency and Trustee Service Australia. 

 

How long does it take?

Once ITSA has approved the Debt Agreement proposal, the creditors will have 30 working days to vote on the proposal. 

 

A Debt Agreement is an alternative to bankruptcy.  It does not impose the same restrictions as Bankruptcy and creditors may allow you to retain some of your assets or continue to operate a business.

 

What is Insolvent?

A person is insolvent when he/she/they cannot pay all their debts when they fall due.

 

What if my Debt Agreement is rejected by my creditors?

Professional Debt Solutions can suggest an alternative to your Debt problem.