A Part IX (Part 9) debt agreement provides a relatively informal, low-cost alternative to bankruptcy for low income debtors (people who owe money to others).
To be eligible to propose that a Part IX debt agreement be formed, the debtor must:
1. Be insolvent as defined by the relevant legislation;
2. Meet the relevant income, debt and asset restrictions as provided by the legislation;
3. Not have been bankrupt, party to a debt agreement or given an authority under Part X of the Bankruptcy Act in the 10 years before the proposal time.
The benefits of forming a Part IX debt agreement is that upon acceptance of the agreement by creditors (the people to whom money is owed), the debt can be repaid over an extended period of time, during which time those debts are frozen.
If you wish to make a Part IX debt agreement proposal and you meet the eligibility criteria, we will prepare the relevant information and obtain from you the necessary supporting documents such as account statements etc and provide that to the official administrator who will then determine whether or not you have met the eligibility criteria which will then be distributed to your creditors for their acceptance or rejection.
If the majority of the creditors (in value) who reply accept the proposal within the relevant time frames, you will be required to meet the payments as set out in the debt agreement and the unsecured creditors will not be able to take any action against you or your property. There are time limits and criteria required to be met and if you require assistance please contact Hall & Co Solicitors to discuss the matter further.