Debt agreements are a legally binding compromise between your creditors and yourself. Regulated by ITSA it involves a proposal being made to your creditors (based on the information you provide us) allowing you to offer a regular amount you can afford.

If a majority of your creditors in value vote in favour then your debt agreement is in place and is binding to all your creditors even if they haven’t agreed on it (the voting process is of the responsibility and is regulated by ITSA)

These agreements may include:

µ      A lesser payment than the full amount of all or some of your debts;

µ      An authorized delay on the payment of your debts;

µ      A transfer of property to one or more of your creditors as full or partial payment;

µ       Regular contributions from your income to creditors either individually or collectively

            Your can enter a part IX debt agreement if:

µ    You have not been Bankrupt, entered into a Part IX Debt Agreement or authorized for a Part X of the Bankruptcy Act in the past 10 years;

µ    Your income is less than $55,000.0 (after taxes);

µ    The total amount of your unsecured debts is less than approximately $75,000.00;

µ     Your property has not been released from liability under bankruptcy valued at less than approximately $75,000.00.

µ      We will provide you with the best advise considering your personal situation;

µ      If a Debt Agreement is the best option for your financial situation you will then need to fill in the Debt Agreement Statement of Affairs & Proposal forms (we will assist you with this if necessary), once these are filled out they will be sent to ITSA for processing;

µ      Once processing is accepted ITSA will record the proposal on the National Personal Insolvency Index.

µ      ITSA will then process the proposal for a Debt Agreement or they will refer the process to a registered bankruptcy trustee

µ      Each unsecured creditor will then be sent a summary of the statement of affairs along with an explanation of the proposal;

µ      Once this is received by the creditors they will state their acceptance or rejection by letter or at a meeting

µ      If accepted by a majority of creditors (in value), ITSA will then record the Debt Agreement on the National Personal Bankruptcy Index;

µ      If rejected by a majority of your creditors the proposal ceases.

µ      Once the Debts Agreement is in place you will have to comply with the agreement;

µ      We will then collect & distribute monies for you to your creditors until the full extent of the proposal is paid off.

Before considering bankruptcy you should consider other solutions like a Debt Agreement or an Informal Arrangement, as there are serious and permanent consequences to bankruptcy, however, if you have already considered all options and feel that these are not suitable for you then bankruptcy might be the solution.

Bankruptcy allows for the fair distribution of property among creditors and the prosecution of dishonest debtors, you may become bankrupt voluntarily or by actions of a creditor.

µ      We will provide you with the best advise considering your personal situation;

µ      If a Bankruptcy is the best option for your financial situation and you have considered all the disadvantages and consequences of bankruptcy you will need to complete a Debtor's Petition and Statement of Affairs, you can do this by contacting a registered trustee or your local ITSA (Insolvency & Trustee Service Australia), this will have to include:

Ë        Name, address and amount owed to each of your creditors (all debts must be stated either business or personal as long as you are liable for them);

Ë       Full details of your income and personal property including house, car, bank accounts, shares or even any money owed to yourself, failure to provide this information or providing misleading information may lead to imprisonment

µ      Once your Debtor's Petition and Statement of Affairs is completed and you have signed the acknowledgment that you have read and understood the prescribed information for a bankruptcy you can then send your documents to you local ITSA;

You may also go bankrupt voluntarily but again it may have very serious and permanent implications and you should consider other solutions before you consider bankruptcy.