Take Back Control With A Debt Agreement

There are certain guidelines and thresholds you must meet to be eligible:

• If you have been bankrupt or in a Debt Agreement before, you must have completed your Debt Agreement or term of bankruptcy at least 10 years ago.
• Your income after tax must be less than $105,009.45 net per annum, per applicant.
• The value of your unsecured assets (including equity in property) cannot exceed $280,025.20.
• Your unsecured debts must be less than $140,012.60.

While the specific terms and conditions of each Debt Agreement is unique and particular to the individual and lenders involved, in general, the average Debt Agreement typically lasts between 3 years for non-home owners or 5 years for homeowners. However, you can complete it earlier if you make larger payments than the set amount.

Your credit file rating will be affected, which may limit your ability to incur further debt.  Where you complete the agreement (ends under S185N of the Bankruptcy Act), the agreement remains on the credit file & NPII until the longer of 5 years and 1 month from the day the agreement is made, or 1 month from the completion date.

After the listing period, you will have a clean slate from which to rebuild your finances. We have access to a panel of lenders willing to lend money to individuals who have completed Debt Agreements at competitive rates.

A Debt Agreement can impact your employment, especially if you hold a professional license or work in certain industries. Some employers may have policies regarding employees entering into Debt Agreements, and certain professional licenses may be affected. It's important to check with your employer or professional licensing body to understand any potential implications for your career.

A Debt Agreement can include 'provable debts', which are debts that entitle the creditor to participate in dividends paid in a bankrupt estate. Typically, these include unsecured debts such as credit card debt, personal loans, medical bills, and other similar obligations. However, secured debts (like home loans or car loans) and certain state debts (such as fines) cannot be included.

Yes.

While you can include joint debts in your Debt Agreement, it's important to note that this agreement does not release the other person from their responsibility for the debt. They will still be liable for their portion of the joint debt.

No.

Not all creditors need to agree to the proposal. As long as creditors representing a majority in value (50.01% of the total dollar amount) of those who vote and are entitled to vote accept the proposal, it becomes legally binding on all creditors.

If you fail to meet the terms of your Debt Agreement or make payments in full and on time, creditors can seek to terminate the agreement. They may then recommence collection proceedings, take legal action, or pursue bankruptcy.

Revive Financial will administer all of the payments to your creditors on your behalf, ensuring a smooth and stress-free process. Our specialized team will guide you through each step, helping you create a manageable debt management plan tailored to your situation.

There are costs associated with setting up and managing a Debt Agreement, including administration fees and trustee fees. These costs will be outlined in your agreement proposal, so you will know exactly what to expect.

To get started, contact Revive Financial for a consultation. Our team will assess your financial situation, explain your options, and help you determine if a Debt Agreement is the right solution for you. We'll guide you through the entire process, from proposal preparation to finalizing the agreement.