What are debt agreements?
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Posted On :
Nov-11-2011
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Article Word Count :
428
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A debt agreement, also called debt settlement, is a legal and binding agreement between an individual, business, or an entity and his creditors. It is an alternative for a person and his creditors to bankruptcy.
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A debt agreement, also called debt settlement, is a legal and binding agreement between an individual, business, or an entity and his creditors. It is an alternative for a person and his creditors to bankruptcy. Debt agreement is also referred to as a Part IX Agreement of the Bankruptcy Act.
With the help of debt agreements, a person is able to settle on a debt, which could either be a payment less than the full amount of all his debts; or a transfer of property from the person to one or more of his creditors in full or part payment; or a regular payment of amount due to one’s creditors, either collectively or individually. The agreement basically includes an individual’s proposal to the creditors of terms that he can afford to deal with his unsecured debts.
The debt agreements help individuals going through harsh financial situations by managing their debts and by improving their life. One of the major benefits of entering into Part IX Debt Agreement is that it helps one avoid the unpleasant consequences of bankruptcy and its limitations on one’s lifestyle. One is able to consolidate all the unsecured debts into one regular payment that one can afford to pay.
Once the debt agreements are approved, the amount of each of the debts is frozen. To put it simply, any outstanding amounts that a person owes to his creditors are fixed and no further interest continues to accrue onto them. From that point, the person doesn’t receive any calls from his creditors. The Debt Rescue deals with the creditors. It collects the payment from the individuals and then distributes the funds to the creditors on a regular basis according to the agreed proposal given in the debt agreement.
Those of you, who have no previous bankruptcy, Debt Agreement or authority under Part X of the Bankruptcy Act in the last 10 years; and have income after tax no more than $69,028.55* per annum ($1,327.47 per week), and your total unsecured debts are less than $92,037.40* and Net assets less than $92,037.40*, you are eligible for the debt agreements.
But before you enter into dent agreements, you must know that in case you fail to manage your debt agreements, you may fail to manage your debts too and this could actually worsen your condition. If you want to make your debt agreements work for you, it is advisable to visit debtrescue.com.au Here you would get expert advice and guidance for making your debt agreements work for you.
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Article Source :
http://www.articleseen.com/Article_What are debt agreements? _103196.aspx
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Author Resource :
Debt Rescue has famous writes on the topic Debt Agreements and Reduce the Debt
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Keywords :
debt agreements,
Category :
Finance
:
Debt Consolidation
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