2- Starting June 27, 2019, all debtor agreement managers will also have to set up in an external dispute resolution system: first call the main customer service number for your credit card and ask someone, preferably an official, to speak to the Debt Recovery department. Explain how serious your situation is. Mark the fact that you have scraped some money and hope to settle one of your accounts before the money is sold out elsewhere. If you mention the fact that you have multiple accounts on which you track the debt accounts, you will instead get a competitive offer. Before you opt for a bankruptcy application or a debt contract, talk to a financial advisor. There are many services that provide assistance to people in debt. They find them on the Internet and watch them or listen to them on television and radio. Many of these services are operated commercially and charge you for their help, usually after a free consultation. You can go to a service for help to correct your credit report or debt consolidation, or just for a few tips, and you will receive a debt contract at the end. This brochure deals with the services you refer to debt contracts under the Bankruptcy Act. Bankruptcy is the formal process of being declared unable to pay your debts. The advance fees charged by administrators can vary considerably (from about $200 to more than $2000!).
Then do your shopping. You can get a list of administrators under AFSA. If you do not sign the contract through all repayments, you will not be released from your debts or interest due. You can continue to pay your creditors during the processing period, the amount of debt included in the debt contract is the amount owed on the reference date. However, you should pay your secured creditors all the time, as these are not included in the debt contract. If you are bankrupt, you will not have to pay most of the debt you owe. Collection companies stop contacting you. But this can greatly affect your chances of borrowing money in the future.
Once you paid the agreed amount, you paid that debt. A debtor who proposes a debt contract commits a bankruptcy. It is not the same as a bankruptcy. A debt contract is an alternative to bankruptcy, but as it falls under Part IX of the Bankruptcy Act, the proposal of a debt contract is considered a bankruptcy deed. Third, debt settlement can have a negative impact on your credit quality. This will make it more difficult for you to borrow money at good interest rates, or even to get credit in the future. AFSA sends the proposal and explanatory statement to your creditors and asks them to explain their debts in detail and vote on the proposal. If you are unable to meet your debts, you may want to consider bankruptcy or an alternative to bankruptcy called the „debt agreement.“ These are formal legal options that are available under the Bankruptcy Act 1966. During the voting period, creditors may not demand payment of the debt against you or your property, but may initiate or sue for a judgment. The judgment cannot be carried out without the leave of the Court.
Debt settlement is an agreement between a lender and a borrower for a high one-time payment to an existing balance in exchange for the cancellation of the remaining debt. For example, someone who owes $10,000 on a single credit card can go to the credit card company and offer to pay $5,000. In return for this one-time payment, the credit card company agrees to allocate or remove the remaining $5,000. Warning: do not refinance yourself to a loan with a higher interest rate to consolidate your debt. If you refinance credit card debt, make sure you don`t find any other credit card debt after – cut off the card until you`ve paid off the consolidated debts.