Personal Insolvency or Debt Agreements can be made when a debtor and creditor come to a resolution where the individual agrees to pay the debt owed to their creditors partially or in full.
Debt Agreements can only be made if you satisfy a number of conditions. Some of these are that you are insolvent, have not been bankrupt or used the debt agreement system in the past ten years and have assets and liabilities below a predetermined amount.
Lodging an application with the Australian Financial Security Authority for a debt agreement is an act of bankruptcy, so it is important to seek professional advice before doing so. We can help you to understand if this type of agreement is best for you once we meet and understand your particular circumstances.
You might also be interested in: