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Debt Agreements FAQ

There are many questions you may have regarding Debt Agreements and below we have tried to answer many of the most commonly asked. If you cannot see what you are looking for then please do not hesitate to get in contact with us and we will answer them for you.

 

Questions answered on this page (this page is regularly updated so please check again for more answers and current amounts).

 

1, Am I going bankrupt

 

2, What does insolvent mean?

 

3, How will a Debt Agreement effect my credit rating?

 

4, How long does a Debt Agreement last?

 

5, How much can a Debt Agreement wipe off?

 

6, What exclusions are there to be trying to apply for a Debt

Agreement?

 

7, How much do I need to owe to be eligible for a Debt Agreement?

 

8, How long does it take to set up a Debt Agreement?

 

9, Can creditors pursue legal action against me if my Debt Agreement has been approved?

 

10, Can I include secured debts?

 

11, Do I have to pay fees?

 

12, What happens if I stop paying my Debt Agreement?

 

13, Is there any guarantee that my proposal will be accepted?

 

Q: Am I going bankrupt?

 

A: No. Although to be on Debt Agreement you have to be insolvent you are not going bankrupt and will not have any of the restrictions placed on you if you were to declare bankruptcy.

 

Q: What does insolvent mean?

 

A: Simply put it means that you cannot pay your debts when they full due?

 

Q: How will a Debt Agreement effect my credit rating?

 

A: The fact you have been on a Debt Agreement will stay on your credit rating for seven years during which time you will find it hard to obtain further credit.

 

Q: How long does a Debt Agreement last?

 

A: Most Debt Agreements last between 3 and 5 five years.

 

Q: How much can a Debt Agreement wipe off?

 

A: The amount of debt a Debt Agreement can wipe depends

entirely on your circumstances. Once a Debt Agreement administrator has reviewed your case they will be in a better position to tell you how much will be wiped off.

 

Q: What exclusions are there to be trying to apply for a Debt Agreement?

 

A: You cannot have been on a Debt Agreement or declared bankruptcy in the past ten years and typically need to owe over $10,000.

 

Q: How much do I need to owe to be eligible for a Debt Agreement?

 

A: You need to owe anything upwards of $10,000 and should have two or more creditors.

 

Q: How long does it take to set up a Debt Agreement?

 

A: This depends on you. If you are prompt in returning documents a Debt Agreement could be in place within as short a time span as two months.

 

Q: Can my creditors pursue legal action against me if my Debt Agreement has been approved?

 

A: No. Once your Debt Agreement has been approved your creditors cannot take any further action against you.

 

Q: Can I include secured debts?

 

A: No. You must continue to pay secured loans, mortgages and any hire purchase agreements otherwise you may face repossession or further legal action.

 

Q: Do I have to pay fees?

 

A: Yes, these fees are taken from your payment and are shown in your Debt Agreement proposal.

 

Q: What happens if I stop paying my Debt Agreement?

 

A: Failure to comply with the terms of your Debt Agreement may result in further legal action being taken by your creditors. Should your Debt Agreement fail you will not be able to propose another one for ten years.

 

Q: Is there any guarantee that my proposal will be accepted?

 

A: No. There is no guarantee a Debt Agreement will be accepted and creditors are under no obligation to accept a proposal.

 

 

 

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