Criteria for entering into a Debt Agreement

Can I enter into a Debt Agreement?

If you are unsure as to whether you would qualify for a Debt Agreement it is best to speak to a Debt Specialist. However broadly speaking in order to be eligible to apply for a Debt Agreement you would need to meet the following criteria:

  • You must be insolvent, an not able to make repayments on your debts;
  • You must not have sought any remedies under the Bankruptcy Act within the past 10 years. If you did, your name will be found on the National Personal

Insolvency Index and you will be ineligible to make a debt agreement application.

  • You need to have at least $8,000 in unsecured debts.
  • Your net asset position (ie . total value of assets less total value of debts) is below $94530.80.
  • Your unsecured debts are below $95,386.20
  • Your annual after tax income is under $70898.10

 

Which Debts qualify for a Debt Agreement?

Not all debts can be consolidated via a debt agreement. For starters the debts need to be unsecured, ie. Exclude your car loans and your home loans.

Some examples of debts that are possible to consolidate in a debt agreement are:

  • Store or Credit card debt;
  • Personal loans;
  • Outstanding rental payments from past tenancies;
  • Professional accounts from accountants, lawyers etc;
  • Doctor bills;
  • School fees;
  • Utility and phone bills;
  • Trade debt including all suppliers;
  • Shortfalls on repossessed motor vehicles

Some examples of debts that can not be consolidated into a debt agreement;

  • Social Security Debts;
  • Tax Debts;
  • Mortgages;
  • Secured car loans
  • Secured Personal Loans
  • Fines

If you are unsure whether your debts would be suitable for a debt agreement, we welcome you to give our Debt Specialists a call on 1300 300 121 to discuss a suitable debt solution.

 

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