"Hi I work for a Debt Agreement administrator. There are 3 ways to end a debt agreement, you pay it out in full, you can apply to have the agreement terminated (however interest backdates from the start of your agreement), or you can offer to make a…"
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How to Cancel a Part IX Debt Agreement
I am 44 years of age and earn between $60 - 65,000 a year and have little in the way of assets (no home).
Around 2.4 years ago I
entered into a part IX debt agreement (using Fox Symes) to repay about
$50,000 due to credit card debt. So I am paying back about $10,000 a
year over 5 years interest free. I pay $760 a month.
At the time I was assured this was a better path then bankruptcy and
stupidly believed this advice. Now almost everything I read implies
bankruptcy would have been the better option as you generally don't have
to pay much of anything back and if so, only for 3 years.
There seems to be little or no benefit to making the effort to try and repay the money. I actually believe entering into a debt agreement is more harsh then bankruptcy in some ways.
Both bankruptcy and debt agreements are on file with credit agencies for 7 years (and government database for life) and are treated exactly
the same. I can't even
successfully apply for a rental property as my application is binned as
soon as they check my credit history.
Recently I've been reading it is possible to annul a bankruptcy if
you repay all your debts in full. The bankruptcy is then treated as if it had never happened.
Is it possible to cancel/annul a
debt agreement if I were able to repay my debt in full. For the record,
there was no reduction in my debt, the $50,000 mentioned earlier is the
full amount, the only concession being I am repaying interest free.
Also would a cancellation of the debt agreement mean my credit
rating is restored?
How would I go about this?
Tags: Debt, agreements
Views: 312
Replies to This Discussion
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Permalink Reply by Di on -
Nikki in the Darth Vadar outfit on money confessions has discussed part IX. If you find her on here, you will find that Nikki is good. I was told by someone to go bankrupt. It gets 'cleared' after 5-7 years, yet still no one would loan to me......until I found ge money.......DONT do that either please.
Good luck and I hope you find your way out of this. I have to sort mine out in the new year, I'm NOT looking forward to it.
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Permalink Reply by Bankruptcy ben on -
Hi I work for a Debt Agreement administrator. There are 3 ways to end a debt agreement, you pay it out in full, you can apply to have the agreement terminated (however interest backdates from the start of your agreement), or you can offer to make a lump some payment in full settlement of your debt agreement. Say if you had 20k you could make an offer to your creditors of 20k today as full settlement of the debt (ie 30k would be written off). There is no option like having your bankruptcy annulled.
Latest Activity
Cliff Mearns replied to Cliff Mearns's discussion Bankruptcy -v Debt Agreement"Ben, let's not lose the loop. How financiers view bankruptcy is not relevant to the discussion of an individual's capacity to pay something. Bankruptcy is being utilised as a means of evading debt obligations. "
Bankruptcy ben replied to Cliff Mearns's discussion Bankruptcy -v Debt Agreement"I agree with the setiment however in reality there's nothing to encourage an individual to make a payment with a Debt Agreement! While technically it's different most financial companies regard it as the same as bankruptcy."
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