Debt Agreement

If you are in debt then a debt agreement may be an option for you.

A debt agreement is a simple method for you to enter into a legally binding agreement with your creditors.

Debt agreements are negotiated compromises with your creditors.

Fox Symes is Australia's largest debt agreement provider.

Some examples of the kinds of proposals put in place are:

Who can enter into a debt agreement?

A debt agreement can be proposed by you if you -

If you would like one of our staff to call and provide you with assistance in understanding how a debt agreement works and if it is suitable for your specifc circumstance you can fill in our short contact form.

What does insolvent mean?

A person is insolvent if and only if they cannot pay all their debts as and when they fall due.

Is a debt agreement the same as going bankrupt?

No, a debt agreement is an alternative to bankruptcy. However by submitting a debt agreement proposal you are committing “an act of bankruptcy”.

What does a debt agreement do?

A debt agreement freezes provable unsecured debts upon acceptance of your debt agreement proposal by creditors. This allows you to pay back the debts over an extended period of time at an amount per week you can afford.

What is a provable unsecured debt?

Examples of unsecured debts are medical bills, store cards, credit cards and some personal loans.

Do all creditors have to agree to my proposal?

No, not all creditors have to agree. The majority of the dollar amount of those creditors who decide to vote, and are entitled to vote, have to agree to your proposal.

What if an unsecured creditor does not vote or decides to vote against my proposal?

As long as the majority of the dollar amount of those creditors who decide to vote, and are entitled to vote, accept the proposal then it is legally binding on all creditors.

Can you guarantee that my creditors will accept my debt agreement proposal?

No. It is your creditors who decide whether they accept or reject your proposal. However as a debtor your responsibility is to make full and complete disclosure of your financial position; put forward the best offer your can and commit to complying with the terms of the proposal.

Will I be able to make one payment per week to all my unsecured creditors?

Yes, we will set up a weekly payment system by way of direct bank debit.

Will a Debt Agreement affect my credit rating?

Both the debt agreement proposal and the debt agreement are registered on the National Personal Insolvency Index (NPII). Baycorp Advantage, the credit-reporting agency uses the information on the NPII to advise any creditors that you are under a debt agreement and/or have submitted a debt agreement.

A creditor can also register a default against your name with Baycorp Advantage.

What is ITSA?

ITSA stands for Insolvency and Trustee Service Australia. It is a government department responsible for reviewing your proposal to creditors and the registration and facilitation of debt agreements.

Does ITSA have to accept my proposal?

No. ITSA may reject your proposal for processing if they think it is not in the best interest of your creditors, or if you are ineligible to submit a debt agreement proposal.

How long does it take?

Once ITSA has accepted your debt agreement proposal for processing, creditors may vote to either accept or reject your proposal within 25 working days.

What are the important dates?

The Processing Date: This is the date ITSA accepts your debt agreement for processing; and the Deadline Date: This is the date by which creditors may vote to either accept or reject your proposal. It is 25 working days from the Processing Date to the Deadline Date.

Between the date ITSA accepts my Debt Agreement for processing and the deadline date, do I pay my unsecured creditors?

You may continue to pay your unsecured creditors, however, you are under no obligation to do so. You must continue to pay your secured creditors which you have excluded from your proposal (e.g. house mortgage and car lease).

Read More - Page 2 on Debt Agreements

Alternatively, you can fill in our short contact form and one of our staff will contact you within 24 hours to discuss your Debt Relief options.

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For Australian residents only

If you are employed and have debts greater than $10,000 please call us on 1300 361 204 or fill in this form. We have live Debt Consultants available to help you now.

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