2- From 27 June 2019, all debtor agreement managers will also have to be in an external dispute settlement system: they must understand the consequences of a Memorandum of Understanding to read the prescribed information page on the consequences of bankruptcy, debt contracts and other alternatives. For a debt contract to be accepted, AFSA must vote “yes” to a majority (in dollars) of the voting creditors. Debt contracts are a formal alternative to bankruptcy under the Bankruptcy Act for insolvent individuals (unable to pay their debts when they mature). As part of a debt agreement, your unsecured creditors agree to accept less than the total amount of debts due in return for a commitment you made to make regular repayments for an agreed period. As of June 27, 2019, debt contracts are limited to a maximum of 3 years or 5 years during which you own or pay your home. There are eligibility requirements that must be met in order for the proposed debt agreement to be adopted. After submitting your proposal to AFSA, the official recipient will evaluate the proposal and verify that it meets these requirements. If the proposal is considered non-compliant with these requirements or is not in the interests of creditors, it may be rejected by AFSA. No, not all creditors need to agree.
The majority of the value, i.e. 50.01% of the dollar of the creditors who vote and have the right to vote, must approve your proposal. If you do not misre serve all your debts or indicate that the debt is a common debt, that it has a guarantee, that it is secured/unsecured, or even that you do not divide the correct debt, these are just some of the reasons why the creditor may reject your proposal. You should keep in mind that your creditors may have access to information that you may not have disclosed to us. If the proposed debt agreement is adopted by the creditors, you must respect the agreement and ensure that it is concluded on the date indicated in the proposal. No, although debt contracts are managed in accordance with bankruptcy law, they are an alternative to bankruptcy. However, by submitting a proposal, you are committing “an act of bankruptcy.” Disclaimer: Always consult a financial advisor before going bankrupt, as there are serious consequences that you need to understand, including that any money or else you receive (for example.B. heirs or win) while you are bankrupt, without pay. A financial advisor can also help you negotiate an informal agreement and avoid bankruptcy or a debt contract! Bankruptcy usually lasts only 3 years (although it can be increased to 5 or 8 years in certain circumstances) and you only have to pay income contributions (payments on your debt) if you exceed a certain threshold (see www.afsa.gov.au and select the current amounts).
Your debt or joint debt must be included in your debt contract. However, the coach remains responsible for the entire debt.