Take Control

The first company in Australia to provide consumers with online access to credit reports.




  

Debt Agreement

Definition of 'Debt Agreement'

A Debt Agreement is a cheap and flexible alternative to bankruptcy. It is aimed at people on low incomes with few assets.

It gives consumers who are struggling with their debts the option of reducing the amount they pay to their creditors by agreeing to pay less than the full amount due.

Payments can take the form of money or property.

This type of insolvency is primarily used by people with card and loan debts they cannot afford to pay. To qualify for a Debt Agreement, there are a number of restrictions on income.

Debt Agreements can be administered by a Registered Trustee, AFSA or a third party. Registered trustees typically charge a fee of around 20% of the money paid by consumers to creditors.

A Debt Agreement is legally binding on all parties. Unlike bankruptcy, your income will not be restricted as long as it does not form part of the agreement.

A majority of creditors holding 75% of the debt value must accept the proposal for the Debt Agreement to come into effect.

The agreement normally ends when all parties bound by the agreement have fulfilled their obligations, but will remain recorded on your credit report for 7 years.

Use the links below to locate the term you are looking for. If you can't locate it, please get in touch.

Credit Jargon Starting 'G'

Credit Jargon Starting 'I'

Credit Jargon Starting 'J'

Credit Jargon Starting 'L'

Credit Jargon Starting 'M'

Credit Jargon Starting 'S'

Credit Jargon Starting 'T'

Credit Jargon Starting 'V'

Credit Jargon Starting 'W'

Accepted Payment Methods: VISA and MasterCard

©Checkmyfile Pty Ltd 2007 to 2018. All Rights Reserved.

Check your Australian Credit ReportCheck your UK credit report