Why You Should Never Accept a Part 9 Debt Agreement
Frequently Asked Questions
-
Financial hardship is when you are unable to meet your contractual debt obligations because of unexpected events that impact your cash flow, such as unemployment or having hours reduced, unexpected expenses, illness, family tragedy or a natural disaster.
-
The benefits can include short term relief from repayments, more time to pay off your debts, freed cash flow to pay other bills, decreased risk of being defaulted or harming your credit score.
-
Your credit cards will be stopped/cancelled during the hardship period so you can’t make any transactions on that account.
-
Your credit rating is not impacted during the hardship period. However, if you have already defaulted on your debts prior to arranging hardship, then you may already be default listed.
-
LTA is negotiating an agreement with your creditors to vary your credit contract with nil interest or reduced interest with monthly repayments paying off the balance of your debts over the next 5 to 7 years.
-
FF settlement is negotiating an agreement with your creditors for a final settlement by offering a reduced lump sum to close your debts, rather than paying the full amount. (if you have lump sum funds to offer).
-
Depending on your particular personal and financial circumstances, you could achieve one or more of the following:
- Interest frozen or reduced.
- Postponement of your repayments for an agreed period.
- Long Term Payment Arrangement – credit contract variation to extend your loan period, so you make smaller affordable repayments.
- Full & Final Settlement – pay a reduced lump sum to close your debts.