Article 4(4) provides that registration as a debt manager is that the registered debt administrator provides the debtor with specific information on the effects of debt contracts, including the consequences of entering into a debt contract, alternatives to a debt contract and the costs associated with the preparation and conclusion of a debt contract. The information required by paragraphs (a) to (d) of subsection 4(4) is consistent with the information to be provided to debtors in subsection 9.01(1) of the Bankruptcy Code, 1996. (1) For the purposes of Paragraph 186F(4) of the Bankruptcy Act 1966, this Section sets out the conditions to which the registration of a person as an administrator of a debt contract under Section 186F(3) of that Law is subject. A person or organization called the debt agreement administrator would help you propose the agreement and then distribute your repayments to your creditors. A portion of each repayment will be retained by the Debt Agreement Administrator as a fee for the management of the Agreement. (d) a declaration that it is an act of bankruptcy because a debtor submits a proposed debt agreement to the official insolvency administrator; Financial Rights strongly recommends that you DO NOT sign up for a debt agreement without first seeking independent advice from a free accredited financial advisor. Our fact sheet on debt contracts provides more information. Debt agreements can be quite expensive. Directors charge a fee in advance to prepare the proposed debt agreement and a fee for managing the debt agreement if it is accepted.
Therefore, it may be better to negotiate a repayment agreement directly with your creditors rather than paying a fee to a director. If you are a registered trustee and intend to act as a director on your own behalf, you do not need a separate registration. The decision is made in accordance with subsection 186F(4) of the Bankruptcy Act and requires compliance with publicity standards, compliance with information requirements and membership in the Australian Financial Complaints Authority as conditions for registration as an administrator of a debt agreement. These Terms apply to persons, including corporations, who are registered directors of debt agreements. (e) information on the consequences if the debtor does not make the payments required under a debt contract; Some people may benefit from a debt agreement – for example, if you have an asset like your home to protect that you wouldn`t be able to keep if you went bankrupt. If you`re considering signing up, consider the following: You should get some information about entering into a debt agreement and your alternatives the first time you contact a debt agreement administrator or other party that offers access to debt agreements. This must be at least 5 days before the debt agreement is final, and in our experience, it can take several months before a debt agreement is actually proposed. You must also be informed in writing at least 1 day before the conclusion of the debt contract. .