We believe that everyone deserves a second chance at getting their debt under control. If your debt agreement has been rejected, you still have options. A debt agreement is known as Part IX or Part 9 of the Bankruptcy Act, and it’s an effective way to help manage and eliminate debt. If your debt agreement proposal was not accepted, there may still be alternative options available — including revising the proposal based on creditor feedback.
How It Works
A debt agreement is just that — a mutual agreement between you and your creditors. Occasionally, the repayment terms won’t be considered sufficient for the creditors, and your proposal will be rejected. In this case, you’ll need to resubmit a new proposal based on this feedback. Even if your debt agreement proposal was rejected in the past, it is still possible to submit a new proposal. If your information has changed, your creditors might reconsider the situation.
Advantages of a Debt Agreement
There are a number of benefits of a debt agreement that you won’t get with other types of debt solutions. Here are the most common:
- More control – if your proposal is accepted, you’ll have a budgeted amount you need to pay each week, fortnight or month
- Eliminate your debt – once you’ve finished your agreement term, you’ll finally be free from most, if not all, of your unsecured debt
- Paused Interest – when you enter a debt agreement, your interest on your debts is paused.
