What Is The Difference Between A Debt Agreement And A Personal Insolvency Agreement

Like a Part IX, it`s a new repayment plan that needs to be negotiated with your creditors, but Part X is really suitable for people in a more complicated debt situation. A PIA only covers your unsecured debts such as personal loans, credit card debts, tax obligations, bank overdrafts, etc. It does not cover secured debts like your home and car. A Part IX debt agreement is a legally binding contract between you and your creditors that describes a new repayment agreement for your situation. Debt contracts are administered in accordance with Part IX of the Bankruptcy Act 1966 and marked as such in your credit report and your name is listed in the National Personal Insolvency Index. Take advantage of the range of debt solutions that Debt Busters offers and get out of the financial hole you`ll be in faster. A financial advisor can also help you negotiate an informal agreement and avoid bankruptcy or debt agreement! The proposed section 73 generally includes conditions that specify the steps the trustee may take to enforce compliance in the event of default. During the voting period, creditors cannot demand payment of the debt against you or your property, but can take or continue a legal action to obtain a judgment. The judgment may not be enforced without the authorisation of the Court of Justice. To be properly discharged from your debts, make sure your PIA includes a discharge clause. If not, your creditors may still be able to sue you for debt related to debt owed after the agreement ends.

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