Your debt contract with Part 9 will be removed from your credit file after 5 years and your NAME from the NPII. This leaves you with a clean vest to rebuild your finances. Immediately after you deleveraging from Part 9, you may find that your creditworthiness is quite low. This is most likely due to a lack of financial activity in your credit history and is expected to improve in the coming months. Part 9 of the debt agreement is a sure way to empty your financial slate and start over. Since all your unsecured debts are covered by a repayment agreement, you will have no defaults. With a debt agreement, your creditors agree to accept a sum of money that you can afford. You pay that over a period of time to settle your debts. A debt agreement is for people with lower incomes who can`t pay what they owe. But there are consequences.

The eligibility criteria for entering into a debt agreement are as follows: creditors are contacted by AFSA and are invited to vote in favour of supporting or rejecting your debt contract proposal. You will also be asked to indicate the outstanding amount on your account, to advise you if the account is secure or not, if your account is common or if it has a guarantee or if you have other debts to this creditor. If you are in a debt agreement and are affected by the coronavirus, please contact your debt agreement administrator to discuss your options. If you`ve gone into debt over your head, you might consider a debt agreement about Part 9. Here`s how it works, what it can do for you, and what happens once it`s finished. A debt agreement is a legally binding agreement between you and your creditors. As an alternative to the insolvency application, you negotiate in a debt agreement to pay a percentage of your combined unsecured debts over a period of time (usually 3 to 5 years). Once you have voted for your creditors and approved them, repayments are made to your debt contract manager and not to your creditors. Once you have completed the agreed payments, your commitments are fulfilled and the debt is reflected. Once you have paid the agreed amount, you have paid that debt.

In addition, some of our lenders may consider your request if you are fired after one day of Part 9 of the Debt Agreement. We will contact you shortly to help you get out of debt. Veda Advantage and Dunn and Bradstreet and other credit reporting bureaus may use the NPII information to inform all creditors that you are a party to a debt agreement. . . .