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Part 9 Debt Agreement – How does it help?
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Posted On :
Feb-25-2011
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Article Word Count :
416
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People often use debt agreements as an alternative to going bankrupt. This helps them to cope up with financial crises that lead them to default on fixed expenses or loan repayment.
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People often use debt agreements as an alternative to going bankrupt. This helps them to cope up with financial crises that lead them to default on fixed expenses or loan repayment. Moreover, it is easier to borrow money in future if one has a Part 9 Debt Agreement instead of a bankruptcy in his credit history.
It could be in various forms such as a moratorium, agreeing with the creditors for paying less than the total amount owed to them, transferring a part of your property to the creditor(s) in full or part as payment of the debt etc.
This debt agreement combines all the existing debts into a consolidated debt. The repayments or debts covered by the Part 9 Debt Agreement include unsecured personal debts or loans such as tax debts, personal loans, school fees, credit cards, overdrafts, bills and many more. The debts that have assets attached to them cannot be included in such an agreement.
These kinds of debt agreements are regulated and monitored by the Federal Government. With the help of the Part IX Debt Agreement, you can make weekly, monthly, or fortnightly payments that are assessed based on your budget. The leftover is offered to the creditors through the formal Debt Agreement Proposal.
The immediate benefit of such an agreement is that it provides relief from those chasing you for cash. Your creditors would not be able to add further interest payments and would not be able to take any legal action against you. Moreover, the agreement does add not further interest charges and so you would just have to pay the balance of the Debt Agreement. After paying off your part nine debt agreement, all the previous debts would be considered to have been legally closed.
However, you need to consider the following before applying for a part nine debt agreement. These are:
• It would reflect on your credit history for 7 years.
• You will have to declare all your unsecured debts in your part nine debt agreement.
• Your debt agreement will be accepted only if it receives a majority in the value of unsecured loans.
• These debt agreements are flexible and you can pay them off before time. Although, you will not be fined with additional charges, but you will have to pay a minimum amount.
• If all of your creditors do not accept the debt agreement, the concerned authority can resubmit it after making some changes and citing the reasons for their rejection.
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Article Source :
http://www.articleseen.com/Article_Part 9 Debt Agreement – How does it help?_53846.aspx
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Author Resource :
Are you interested in knowing a Part 9 Debt Agreement in detail? Get in touch with Josh Lovett for further details on Part 9 Agreement and Part 9 Debt Agreement.
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Keywords :
Part 9 Agreement, Part 9 Debt Agreement,
Category :
Finance
:
Debt Consolidation
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