Part 9 Debt Agreement or Bankruptcy? Get Help with Your Debt Negotiation in Blacktown, Penrith, Katoomba or Toowoomba
Do you owe thousands of dollars in credit card interest, unpaid personal loans, disconnected utilities and other types of debt? If so, then you have probably heard or read about a number of different methods that people use to get out of debt—terms like 'bankruptcy,' 'personal insolvency,' or 'Part 9 and Part 10 debt agreements.' The question is, which of these courses of action should you take to handle your debt?
At ABC Debt Solutions, we help clients with their debt negotiations in Blacktown, Penrith, Katoomba, Toowoomba and around the Sylvania Southgate area in New South Wales. With an experienced and knowledgeable staff, we won't just help you negotiate your debt, but we will also help you understand the options that you have available to you. Among those options are Part 9 (or Part IX) debt agreements and bankruptcy.
The Difference Between Part 9 Debt Agreements and Bankruptcy
Part 9 debt agreements are the most frequent type of debt negotiation that ABC Debt Solutions offers to clients in Katoomba, Toowoomba or other local areas. Established by Part IX of the Bankruptcy Act 1966, a Part 9 debt agreement is an agreement between a debtor and their creditor that allows the creditor to clear their outstanding debt to their debtors. As the Australian government notes, 'proposing a debt agreement is an act of bankruptcy.' However, it is also viewed as an alternative to declaring bankruptcy.
In a Part 9 debt agreement, you essentially propose a new payment plan to your creditors that is more affordable for you. Part 9 debt agreements often see creditors accepting to be paid less than 100 cents on the dollar for the debt you owe. In other words, when you enter into a Part 9 debt agreement, you enter a binding contract where your creditors agree to accept less money than what you owe them to clear your debt.
Creditors are often willing to accept less than 100 cents on the dollar in Part 9 because a top alternative is a full bankruptcy. If you choose to declare bankruptcy, you are essentially saying that you are unable to fulfil the debt you have to your creditors. This financial status is recognised by law for three years, and during that time, creditors are not allowed to seek repayment of debt from you. During this period, you will be forced to liquidate your assets to settle your financial position and barred from obtaining new assets. For that reason, many in-debt individuals consider Part 9 debt agreements as a more amenable solution to their financial problems.
Choose the Right Path for You, with Professional Advice and Debt Negotiation Help from Toowoomba's ABC Debt Solutions
In some situations, you will be able to choose between pursuing a Part 9 debt agreement with your creditors and declaring bankruptcy. In other situations, you may be forced into bankruptcy. At ABC Debt Solutions, we can review your financial situation to help you determine where you are. If a Part 9 debt agreement is a possibility, we can help you draw up a proposal and handle all debt negotiations with your creditors.
Are you ready to get the debt negotiation help you need in Penrith, Blacktown, Toowoomba or Katoomba? Call ABC Debt Solutions today, on 1800 DEBTS.