A new federal law commenced on 27 June 2019 – the Bankruptcy Amendment (Debt Agreement Reform) Act 2018 (Cth).

The aim of the law is to tighten up regulation of the debt administration industry and place additional restrictions on debt agreements. Between 2007 and 2016, new debt agreements increased from 6,560 to 12,640 per year. Over the same period, new bankruptcies declined from 25,754 to 16,842 per year

The key changes to Part 9 Debt Agreements

  • The maximum length of 3 years (previously, 5 years), unless the debtor owns equity in real property or debtors’ circumstances deteriorate
  • Safeguards to ensure that the annual amount payable under the debt agreement does not exceed the debtor’s yearly after-tax income by a prescribed percentage (the payment to income ratio)
  • The asset threshold to enter a formal debt agreement has been doubled from $115,733.80 to $231,467.00; and
  • The Official Receiver can refuse to accept a formal debt agreement proposal if they reasonably believe that complying with the agreement would cause undue hardship to the debtor

While these reforms have some potential to reshape the debt administration industry, they still do not provide people with the best way to deal with overwhelming debt.
This is because formal debt agreements, like bankruptcy, have a huge consequence for a person and their family, including:

  • That the debt agreement is recorded on your credit file for 5 years
  • That the bankruptcy is recorded on the public National Personal Insolvency Index (NPII) for 5 years

Also, formal debt agreements don’t do anything about unlawful debt. When you enter a debt agreement the debt administrator assumes that the debts you owe are valid. This may not be the case. We are seeing a rising number of debts that have arisen because of irresponsible lending by lenders.

The Holistic Solution to Debt

Solve My Debt Now offers a holistic solution to overwhelming debt, that is clearly better than entering a part 9 debt agreement or becoming bankrupt.

Our Solve My Debt Now Solution

  • Investigates irresponsible lending to test the validity of your debt
  • Investigates credit defaults, credit enquires, repayment histories and judgments that have been listed on your credit file to ensure they are valid and correct
  • Negotiates debt reductions with your creditors
  • Negotiates hardship variations to your credit contract
  • Negotiates the interest on your credit contract
  • Negotiates affordable payment arrangements with creditors to manage your debt
  • Avoids bankruptcy for you and your family

We Can Help You – Today

Book your FREE Consultation now and talk to one of our qualified SMDN Advocates that will help put you back on the road to financial freedom!