A debt agreement is an affordable, legally binding arrangement with your unsecured creditors (the people you owe money to). This means that once the debt agreement is accepted all of the creditors included in the agreement can not take any further action against you. The benefits of a debt agreement may include: Release you from your debts.

• No more harassing phone calls from debt collectors.
• Freeze interest rates.
• May allow you to pay less then the full amount of your debt.
• Making affordable payments on your debts.
• Help protect your property against repossession.

You are eligible for a debt agreement if:

• You are insolvent (cannot pay your bills when they are due).
• You have an after tax income of less then $63,363.30* per year.
• The total of your unsecured debts is less then $84,484.40*.

You can not enter into a debt agreement if; you have entered into a debt agreement, been bankrupt or completed an authority under Part X (10) of the Bankruptcy Act in the past ten years.

If you do not qualify for a debt agreement there are other options available.

A debt agreement is not the same as becoming bankrupt it is an alternative to bankruptcy, however some people consider a debt agreement to be an “act of bankruptcy”. A debt agreement does not impose the same restrictions or penalties as bankruptcy does.

Your debt agreement and your debt agreement proposal are both registered on the National Personal Insolvency Index (NPII).

To find out more or to see if you are eligible for a debt agreement click here.

*Above figures are valid as at 14/01/2010.