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debt bankruptcy

I just saw an ad on tv encouraging debt agreements and help with debt.
The company says on their web site quote "The Debt Agreement does go on the public record and your commercial credit reference record. This does not have the same connotations as a bankruptcy and can be viewed in a positive light as you are making a choice to square your debt predicament."
This is a bare faced lie by people who are not qualified in finance. You have to ask, whats in it for them? Ring a lender and see how they view Part IX's

Part IX agreements are worse than bankruptcy. It goes on your credit file for longer than bankruptcy. It ruins your credit history permanently. It will come up as bankrupt even though the debts are paid.
[Companies like] This company will pay your debts and you belong to them . They make it sound very attractive and easy but it will be the biggest financial mistake of your life. It does'nt save your credit rating, it ruins it. You can't get future credit, home phones, mobiles, home leases, start a business, anything where credit is needed.

They will consolidate your payments into small weekly amounts paid to them over a set period of time. They can sell the debt to another company. Even though you pay off the money, you will be bankrupt just as bad as a proper bankruptcy. Don't be fooled, this is very dangerous.

Warn everyone about this. They advertised as Government approved but the Government does not condone this practice.
We spent years trying to clear our financial black mark from an unscrupulous company called Debt Help and the manager of this particular company ran overseas to avoid prosecution.
If you are in trouble, talk to your creditors and work a payment plan until you are in a better financial postion. Get financial counselling. Don't do a Part IX Agreement.

Note: edited to remove a company's name

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Replies to This Discussion

Permalink Reply by Maria on November 2, 2009 at 7:03am

Hi Arti

I am thinking of applying for debt 9 agreement with my husband. Can u please share some of ur experience. Did u get that Job ? My main conern is if we apply for debt agreement and down the track in may be next 8 years if we buy a house , how hard it will be to buy a house ? and which types of job if we apply will be affected ?

pls pls help since I am planning to apply for debt agreement from last 1 year but didnt have courgage and how its been very difficult to cope up with payments since I have more than 80000 unsecuured debts.

thanks

Maria

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Permalink Reply by denise on October 12, 2010 at 8:53pm

I would like to know why you have slandered debt agreement companies. I have had involvement with one company for over 8 years and definitely know them to be a reputable company. I know they have assisted many people some of whom were in a position of losing a family home due to credit card and other unsecured debts. They have assisted them to clear unsecured debts to enable them to keep their home. I can give you many testimonies of how the company has assisted people. A Debt Agreement is 'condoned' by the government as it is a government legislation. In 1996 the Howard government introduced debt agreements as an ‘option’ for people to pay off unsecured debts so that they don’t have to go bankrupt. You can have assets of $90,326 per person and still be eligible for a debt agreement. The company has 2 qualified Administers registered with ITSA working in their head office along with other staff members who have financial qualifications through university etc.
I believe the company you had the ‘bad experience’ with was a dodgy company from the UK with the manager/owner absconding overseas after misleading many people. There will always be companies who do this but this one is not one of them.
Your comments may have caused considerable damage to a company that is doing the right thing by clients The proof is by the amount of time they have been around. If they were a company not to be trusted I am sure ITSA would have withdrawn their licence by now.
I agree that a debt agreement is not for everyone but shouldn't be condemned just because you had a bad experience. Talk to people who have managed to keep their homes through using a debt agreement as they would have a different experience. Yes do talk to creditors first but if they are unable to assist due to the amount of debt a debt agreement may be the option particularly if you have assets to lose.
By the way how can you have a 'form' of bankruptcy.
Denise Carnes

Note: edited to remove the names of two companies

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Permalink Reply by Kay H on January 17, 2011 at 8:53pm

I am thinking of applying for debt 9 agreement. I have credit card and personal loan $50,000. Can some on suggest me a good Debt Agreement Administrator?