The current financial market is so versatile, it provides varieties of opportunities for you to avail the loan or debt facility. For example, you find pay day loans, credit cards, car loan, house construction loans, personal loans and varieties of other types of loans, which give you tremendous opportunities to finance your dream projects. In fact, highlighting the popularity of various types of loans, Michel Roddan of Australian Business Review points out that recently, shares of Credit Corp have witnessed an upward trend by about 15%. However, in order to avail the loans, the financial institutions may require you to enter into a debt agreement Australia wide.
As you know, before availing the loan facility, any financial institution will require that you enter into an agreement. The agreement deals at length the purpose for which the loan facility is being availed, the terms and conditions of the lender, rate of interest and various other related issues. This debt agreement Australia institutions enter into is a legal binding between you and the lender.
Take steps to recover the money:
On the other hand, there are instances of debtors defaulting payment of EMIs. If you continue to default payments over a period of time, then the financial institution will be forced to invoke the appropriate provisions of debt agreement Australia firms enter into. This entitles the financial institution to institute legal proceedings so as to recover the money from you.
Implications of debt agreements:
According to the Financial Security Authority of Government of Australia, with continued defaults, debt agreements can be deemed to be a document for bankruptcy. The creditor can invoke the provisions of debt agreement credit file and seek entry of your name in the National Personal Insolvency Index (NPII). Of course, this entry could be for a limited period which is normally up to the time you clear the debt. However, the very fact your name is on NPII under part 9 debt agreement consequences of such entry can affect your credit rating. Therefore, before entering into the debt agreement, you should understand the implications of such agreements.
By invoking the provisions of the debt agreement, the financial institution may reschedule the loan and force you to make periodical payments of the revised EMI. In some cases, in order to meet the obligations under the debt agreement, you may even be forced to sell your assets. However, by virtue of debt agreement, you are also entitled to request the financial institution to provide some temporary holiday for repayments. This important part 9 debt agreement eligibility clause gives you some time to mop up your resources to repay the debts. See more at Debt Helpline
Eligibility for entering into debt agreement:
According to the law, if you are not bankrupt or entered into the debt agreements during the last 10 years, then you would be eligible to enter into the debt agreement. Further, according to law the financial institution may insist that you should have unsecured debts or a divisible property valued at $100,000. Alternatively, the financial institution may insist that you should have after-tax income valued at $81,000.
Considering the serious legal and financial implications, it is advisable that you enter into the debt agreement only after consulting financial advisors or an attorney having sufficient experience in dealing with such matters.