REJECTED DEBT AGREEMENT
WHY MIGHT MY DEBT AGREEMENT BE REJECTED?
When you apply for a Debt Agreement, your Administrator drafts a proposal detailing your offer of repayment and why you are offering your creditors this amount. Your creditors are then invited to vote either for or against your proposal. In the voting process, your proposal must be accepted by 50% or more (by debt value) of your creditors. If your Debt Agreement proposal is accepted then you can begin your Debt Agreement repayments as arranged.
In some cases, the creditors involved might not agree to the terms of your Debt Agreement proposal, which results in your Debt Agreement being rejected. The most common cause a Debt Agreement is rejected is when your creditors do not believe that the proposed repayment plan is enough to meet individual creditor guidelines.
WHAT HAPPENS IF MY DEBT AGREEMENT IS REJECTED?
We do not put forward a Debt Agreement unless we believe it will be a successful one for all parties involved. If, for any reason your Debt Agreement proposal is rejected, it may be possible for the administrator to re-negotiate the proposal with your creditors, providing you are in a position to offer a revised Debt Agreement payment and agree to any revised terms. If you cannot agree to a revised Debt Agreement proposal, then you will need to look at other ways to addressing your debt problems. We can discuss other options available to you.
HOW CAN I AVOID MY DEBT AGREEMENT BEING REJECTED?
Make sure you are apply for a Debt Agreement with the help of a trusted Debt Agreement Provider. Any respectable Debt Agreement company will only put through a proposal on your behalf if it adheres to recommended guidelines and is fair for both you and your creditors. This will increase your chances of having it approved successfully. An administrator should not recommend a Debt Agreement to you unless it is the most suitable option for dealing with your debt.
MY IVA HAS BEEN REJECTED
If your IVA has been rejected, it may be possible to re-propose a Debt Agreement if you are in a position to offer an alternative level of debt repayment. If you feel that this is the case please contact us online or on 1300 912 197 to discuss your options.
However, it could be that a Debt Agreement may not be the best possible solution for your financial problem. There are alternatives to Debt Agreement’s which may suit your individual circumstances better such as;
AN INFORMAL ARRANGEMENT
An informal arrangement is with your creditors whereby you agree to pay back your debt at a level that is affordable for you. The plan will last as long as it takes you to pay back your debt in full but at a manageable level for your finances. You will no longer need to worry about dealing with your creditors and we can try to negotiate that interest is frozen but this cannot be guaranteed as it is not a legally binding arrangement.
* For further information please see our debt management section.
With Debt Consolidation, you can consolidate your debt into one monthly payment by taking out a personal or secured loan. This loan will effectively pay off your current debt in full and your debt will be consolidated into a monthly payment in the form of a loan. We can put you in touch with our finance partners to see if this is a suitable alternative for you. Please contact us and we will do our best to help you.
Bankruptcy is a legal status often considered when you are not in a position to pay your debts as they fall due.
Bankruptcy can either be voluntary, whereby you petition for your own bankruptcy. We can assist you in lodging a bankruptcy to clear all your unsecured debts. Contact us to find out more.
* For further information please see our Bankruptcy section.
Should you wish to discuss your options contact us online or telephone 1300 912 197 for free advice.
DO YOU NEED HELP WITH YOUR DEBT?
To find out if Debt Savvy can help you regain control over your finances, or if you want to talk about a Debt Agreement that has been rejected, simply get in touch with one of our advisors. Fill in this form or call 1300 912 197