Part 9 and 10 Debt Agreements
What is the difference between a Part 9 and Part 10 debt agreement?
Simply put, a Part 9 (IX) Debt Agreement is a legally binding agreement between you and your creditors where 50.01% of your creditors agree to accept a sum of money that you can afford. Not only is this a popular alternative to bankruptcy, but it is a fast way to set your finances in order. An immediate benefit of an accepted Part Nine Debt Agreement is that no more interest payments can be added by your unsecured debts, and any legal action to recover money by your creditors is stopped.
To be eligible to lodge a Debt Agreement you:
- Are insolvent
- Have not been bankrupt or had a Part IX or Par X of the Bankruptcy Act in the past 10 years.
- Have unsecured debts Assets and Income below the indexed amount.
A Part X or Personal Insolvency Agreement (PIA) is legally binding agreement between you and your creditors whereby majority of creditors under a special resolution agree to accept either full payments, instalment or a lump sum to settle your unsecured debts. There are no debt, income or assets limits to be eligible to propose a PIA. To be eligible to propose a PIA you must be insolvent.
Release your financial burden with a Part 9 or 10 debt agreement
At Free From Debt we can work to secure you government debt agreements known as Part 9 and Part 10 debt agreements. Under the Bankruptcy Act 1966, alternatives to bankruptcy were made available. For those who are eligible, a Part 9 debt agreement or Part 10 debt agreement is preferable.
Using these government debt agreements, you can freeze interest payments, prevent legal action on your debt, and negotiate part or full repayments that you can afford. If you are struggling with bills, overdrafts, credit cards, school fees, personal loans, or tax debts, then a Debt 9 or 10 agreements may benefit you.