When a person enters a formal debt agreement, they would have their name listed on the National Personal Insolvency Index (NPII), for 5 years. This is a list of all the people in Australia who have entered a formal arrangement with creditors or who have declared themselves bankrupt. Those who are declared fully bankrupt are listed on the NPII forever. The NPII contains a person’s basic information, and can be accessed by anyone for a fee. As a Formal Part 9 Debt Agreement is an act of bankruptcy, entering one can cause your credit file to be listed for up to 5 years, and can cause difficulties even when seeking finance after the agreement. Unlike a Formal Debt Agreement, an Informal Debt Agreement allows individuals to reduce their debt, freeze their interest, and make repayments peacefully. An Informal Debt Agreement may not bear an impact on a person’s credit file! Formal Debt Agreements are legally binding, and regulated by the Australian Financial Security Authority (AFSA). An Informal Debt Agreement, however, allows a person to renegotiate the terms of their debt, to settle on a repayment arrangement that they can afford. Practically, it offers individuals a way to get out of debt, without having to suffer any long-term or lasting consequences that can be associated with a Part 9 Formal Debt Agreement, or with declaring bankruptcy. At Australian Debt and Insolvency Solutions (ADAIS), we provide advice to countless Australians seeking a way to manage their debts. When it comes to determining your options for debt relief, we seek to provide recommendations that help you find a way out of debt effectively, and in the shortest amount of time possible.
ADAIS is here to help For result-driven, pocket-friendly assistance with debt reduction strategies, Australian Debt and Insolvency Solutions (ADAIS) is here to help. Call us for a consultation at 1800 212 452 today, and find greater financial security for yourself, and your loved ones.