Debt agreements are becoming more and more popular. Of the 30,000 private bankruptcies in fiscal 2017, 45 percent were debt contracts compared to 26 percent in 2011. Under Australia`s Bankruptcy Act in 1966, a debt agreement was reached with a debt manager. This is the person to whom the debtor makes payments and with whom he deals. In return, the administrator of the debt agreement cooperates with the creditors, taking into account the best interests of both parties. Servicing Melbourne, Sydney and Perth, Bankruptcy Debt Help can provide you with comprehensive debt information and solutions. Contact us today. For Australians who are unable to pay their debts, including credit cards, tax debts or private loans from a bank or lender, debt agreements are seen as an alternative to filing for bankruptcy. This is according to a recent annual report by the Australian Financial Security Authority (AFSA), which found that debt agreements now account for around 36.27% of total private bankruptcy. What are the advantages and disadvantages of debt agreements? More importantly, are there more appropriate options when you`re in financial trouble and need help managing your debt? If you are not able to pay off your debts on time, a debt agreement could be a positive step in releasing your debt. Unfortunately, there are a few drawbacks, and for this reason, you need to carefully consider the consequences of making a debt deal before proceeding.
Who do you turn to for trusted and independent advice? Fortunately, here too, you have options. Whatever your help, you need to make sure that the person you have chosen has access to all the options available. From advice to loans and other financing options, to managed plans and bankruptcy. One of the biggest risks you run when looking for help at this crucial point is to invest your trust in an organization that specializes only in two or three debt relief options.