Yes, yes. If you find that you cannot honour the payments on your debt contract because your circumstances have changed (if you have z.B. if you have lost your job or your expenses have increased), you will immediately notify your debt manager. You can request a variant from AFSA. Your creditors can also request a change. When your debt contract is concluded, your unsecured debts will be frozen. This means that when the debt contract comes into effect, no interest or fees can be collected on your unsecured debts. This allows you to pay off your debts over a fixed period of up to 3 or 5 years, through weekly repayments depending on accessibility. After successfully concluding the terms of the debt agreement, you will be released from any unsecured debt included in the agreement. You should get some information about entering into a debt contract and your alternatives when you first address a debtor contract administrator or another party that offers access to debt contracts.
It must be at least 5 days before the debt agreement is reached and, in our experience, it may be many months before a debt agreement is actually proposed. They must also be informed in writing at least 1 day before the conclusion of the debt agreement. This communication should cover the details of your specific agreements, including the fees you will pay, as well as some general information about debt agreements and alternatives. Information on debt contracts can be obtained directly from the Australian Financial Security Authority at www.afsa.gov.au. You may be tempted to enter into debt contracts to reduce your interest or simplify your repayments, but you can actually avoid your repayments without any real rigor. A debt contract is not really appropriate because it will affect your ability to get loans and other services in the future. You may be able to refinance at a lower interest rate and/or consolidate your debt to make things easier. You may have ways to increase your income or reduce your expenses. See money smart at www.moneysmart.gov.au for options Proposals may contain different regimes that correspond to debtors: As a general rule, fines are not a demonstrable debt. This means that you must continue to pay them outside of your contract. To be eligible for a debt contract, you must: Yes, your creditors have the right to reject your debt contract proposal.
It is important to make all your income, debts and assets known.