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! If you need help with credit card debt, consider seeking out a qualified professional.
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 and finding help with credit card debt, 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.