Are You Subject To A Part 9 Debt Agreement

3:21 am Uncategorized

The consequences of a failure of a debt agreement can be severe. The timetable for solving the financial problem is extended in an unacceptable way, with consequences for the person who has financial problems, and that person`s family. Exposure to the risks of medical problems, depression, relationship breakdown, etc., is higher. If a debt deal fails, you have lost all the time that the debt contract has brought and you will need bankruptcy to solve the financial problems, which will take another three years. These formal options can free you from debt, but they have serious long-term consequences. You may influence your career and your ability to obtain loans or credits in the future. I tried to apply for a debt consolidation loan, but I was turned down by phone, but they offered an “alternative” that would be as simple as a loan. At no time was I told that Part IX was considered a bankruptcy or that I did not have access to credit. In fact, I was told that getting a mortgage would be difficult, but not impossible (but it was impossible). Anyway, I`m on track to pay it over 3 years instead of 5. If you take out the debt prematurely, you have a chance to have them removed from your credit file at an early stage, especially if I have not been informed of the process? I have no other negative impact on my credit report. A Part 9 agreement is certainly an act of bankruptcy, but it is not a complete act of bankruptcy. You do not declare bankruptcy if you enter into a debt contract.

Here are some of the main differences between the two: bankruptcy is the formal process that declares not being able to pay your debts. When you enter into a debt contract, you negotiate with your creditors to pay a percentage of your debts based on what you can afford over time (often within three to five years). Once a debt contract has been accepted by your creditors, it becomes a legally binding agreement. You must start with the repayment, which is stipulated in the agreement from which your creditors receive dividends. While the agreement is in effect, the interest on your unsecured debt will be frozen and no enforcement action can be taken against you or your property.

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