Frequenty Asked Questions
Please read the answers to the following questions for some very useful information regarding Debt Consolidation.
- What is a Debt Agreement Proposal?
- What debts can be consolidated?
- What are the benefits of a Debt Agreement Proposal?
- What if I'm on a pension or centrelink?
- What debts can't be consolidated?
- What is the minimum debt required?
- What is voluntary bankruptcy?
- What are the alternatives to bankruptcy?
- What is the downside to debt agreements?
In 1996 the Government introduced legislation called a Part IX Debt Agreement, which offers people in financial difficulty an alternat ive to bankruptcy.
A Debt Agreement Proposal is a simple process that allows you to come to a compromise with your creditors, and freezes the interest, for all of your unsecured debt. Conditions for entering into an agreement include:
- You must not have been bankrupt in the last 10 years
- You must not have entered into a debt agreement in the last 10 years
- Your unsecured debt must not exceed $94,530.80 (indexed)
- Your after tax income does not exceed $70,898.10 (indexed)
- We suggest a minimum of $10,000 in debts, for consolidation to be viable for you
CNN Debt will assist you with all relevant documentation to prepare a statement of your financial situation and work out payments that best suit you.
