Part IX and Part X Agreements
Part IX Debt Agreements are a low cost flexible alternative to bankruptcy. This is a simple method for debtors to negotiate a binding compromise with their creditors. Part IX involves a person in debt proposing a deal with their creditors. The debt agreement proposal may be accepted or rejected by creditors.
AFSA (Australian Financial Security Authority), handles the voting process. A proposal is accepted if a majority of creditors with 75% of the value of debts vote in favour of the deal. All creditors with provable debts are bound – even those who voted against the proposal.
A debt agreement can only be proposed by a debtor who has
- Not been bankrupt, utilised a debt agreement or given an authority under Part X of the Bankruptcy Act in the last 10 years
- After tax income of less than about $75,498.15
- Unsecured debts of less than about $100,664.20. Property not exempt under bankruptcy valued at less than about $74,292.40 $100,664.20
To find out more about Part IX and Part X agreements, why not give our consultants a call on 1300 332 876 or complete an inquiry form and you will receive a call back to discuss your debt situation and potential solutions.