On February 14, 2018, the Bankruptcy Law Amendment Act (debt contract reform) was introduced in 2018 to make the debt agreement system more accessible and «provide better protection to debtors and creditors.» The reform includes a new rate of payment for debtors, intended to ensure the affordability of debtor repayments, and a doubling of the asset limit that would allow those with increased equity in homes to access the system. Debt agreements under the reform are now limited to three years compared to the current four- to five-year practice. A debt contract is for people with lower incomes who cannot pay what they owe. But there are consequences. If you are struggling with debt, a debt contract may be the right solution for you. Safe Debt Management aims to improve your life and can help you get out of debt. A debt contract (also known as Part IX Debt Agreement) is a formal way to settle most debts without going bankrupt. A debt contract is not the same as a debt consolidation loan or informal payment agreements with your creditors. Similar items: Personal Debt Management: The four options Once you have paid the agreed amount, you have paid this debt. The new worrells report on insolvency: 2018 shows that bankruptcies as a solution in Australia are steadily decreasing.
The volume of bankruptcies increased from 22,163 bankruptcies in 2010-1 to 16,320 in the last fiscal year (2016-17); 29%. This decrease in the number of bankruptcies corresponds to a 69 per cent increase in debt contracts over the same period. Before you compete or consider a debt contract, you should explore your other options for managing uncontrollable debt. Debt contracts fall under Part IX of the Bankruptcy Act 1966. The Australian Financial Security Authority (AFSA) is responsible for the management of the law and related regulations. A debt contract ensures that you will be protected from further legal action, including bankruptcy during your agreement on debts incurred. In principle, you are protected by bankruptcy law without going bankrupt. If you are bankrupt, you will not have to pay most of the debt you owe.
Collection companies stop contacting you.