Every year more and more Australians sink deeper into debt and many choose declaring bankruptcy over the alternative. Surprisingly, not many people know there is a better option than declaring bankruptcy!
A part IX debt agreement is a fantastic option. When you file for bankruptcy you scar your credit for years. This in turn makes it very hard to borrow money and for a lender to trust you. It is time to get back in control of your finances and avoid declaring bankruptcy!
Why a Part IX Debt Agreement?
1. With a part IX debt agreement handled correctly by your agreement administrator the interest on your debt is frozen. This is what kills people in debt, the interest just keeps piling up and they sink deeper and deeper into debt. Without a real plan anyone in debt can drown in interest and end up declaring bankruptcy.
2. You don’t have to negotiate with your creditors because you have an agreement administrator that will handle negotiations and communications for you. It can be quite a pain to be dealing directly with your creditors, they know you are not an expert in this field and they have leverage against you. It’s best to leave the negotiating with your agreement administrator. They have the experience to handle your creditors and make the process easy for you.
3. When you file for bankruptcy your credit record gets a mark. Another unfortunate consequence of filing for bankruptcy is that all your financial records will be in court and accessible to the public. When you choose to go into a part IX debt agreement your credit record will be affected slightly, but it is better than leaving it and hurting it further due to your unmanaged debt. It will be easier to rebound on your credit record if you don’t have a rock bottom score.
4. Struggling to make repayments is nothing new to Australian’s in debt. Repayment terms are always on the side of the creditors and it is too common of an occurrence to see struggling debtors. If you go into a part IX debt agreement you only pay a single regular repayment instead of juggling multiple repayments. Your debt agreement administrator will make sure that the creditors will give you a good deal considering this is already a bad debt and collection is their priority.
Part IX Debt Agreement before Declaring Bankruptcy
If you want to know more about the advantages of choosing a part IX debt agreement check out how we can help!