
Alternate Debt Relief

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Part IX Debt Agreement Proposal

Is a legal binding contract which you enter into with your creditors to repay back your debts sometimes at a lesser amount.

This option releases you from all your debts. Alternate Debt Relief, will liaise will all your creditors to come to some sort of an arrangement by way of payments by administering, consolidating all your debts under the one amount. The debt Agreement administrator will then be in charge of making all the payments to your creditors on your behalf. You will no longer have to deal with your creditors. This will stop any current action on your accounts, legal action, and continuous harassing phone calls. This way you will also be taught how to manage your money and obtain a routine in which you can sustain for the rest of your life and after the debt agreement proposal is finalized. This will release you from all debts.

There is criteria that needs to be met if planning on lodging the Part IX

•	You have not been bankrupt or previously applied for a debt agreement or given an authority under Part X of the Bankruptcy Act in the last 10 years;
•	Have an after tax income of less than about $55,719.30 per annum;
•	Have unsecured debts of less than about $74,292.40
•	Property not exempt under bankruptcy valued at less than about $74,292.40;
•	You are Insolvent

Do all creditors have to agree to my proposal?

No, not all creditors have to agree. The majority in number and at least 75% of the dollar amount of those creditors who decide to vote, and are entitled to vote, have to agree to your proposal.

What if an unsecured creditor does not vote or decides to vote against my proposal?

As long as the majority in number and at least 75% of the dollar amount of those creditors who decide to vote, and are entitled to vote, accept the proposal then each creditor is bound by the decision, it is legally binding on all creditors.

Process of lodging a Part IX Debt Agreement

Once ITSA (Insolvency and Trustee Service Australia) has accepted your debt agreement proposal for processing, they will send a copy to your creditors. Your creditors may vote to either accept or reject your proposal within 25 working days which will be the Deadline Date: This is the date by when all creditors may vote to accept or reject your proposal.

A debt agreement is an alternative to bankruptcy. By lodging a Part IX Debt Agreement proposal you are committing "an act of bankruptcy".

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