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Part IX (
part 9) what does it mean?
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.
ITSA, 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 $55,719.30
Unsecured debts of less than about $74,292.40
Property not exempt under bankruptcy valued at
less than about $74,292.40
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