Are you struggling with debt? Are you looking for ways to not only become debt-free but improve your credit score? Professional debt agreement help is what you need. Some of you might consider filing for bankruptcy to put an end to your debt woes. But this won’t be good on your credit rating and that bankruptcy will be a part of your credit history for a long time. You should seek help from professionals who can provide you with a wide array of debt solutions to choose from.
Financial freedom through a debt agreement is not the most popular option for consumers, though. Some look at debt consolidation or even debt negotiation to relieve themselves of this debt problem. But in order to make the most of the professional debt agreement help, you need to know a few things about how it works.
Below are some of the most frequently asked questions to help you find out more about debt agreements:
What is the difference between debt agreement from bankruptcy?
Debt agreement and bankruptcy are both governed by the same federal law. However, debt agreement is a safer way to deal with unsecured debts rather than a bankruptcy that have severe consequences on your overall credit rating. Debt agreement also shows your willingness to pay off your debt while bankruptcy is bailing on your debts altogether.
What do you expect with debt agreement?
Proposing a debt agreement will still be categorized under bankruptcy. However, it will only appear on your credit report for 5 years or depending on the length of your agreement with your creditors. As for bankruptcy, it will be on your record for a much longer time.
What is an act of bankruptcy?
An act of bankruptcy, which debt agreement is categorized under, is different from a legitimate filing of bankruptcy. The former is a strict agreement between you, the debtor, and the creditor that you must comply with the new terms of the agreement. If in case, you fail to meet the guidelines of the agreement on your debts, the court can file a petition for you to go bankrupt. It is the final step towards bankruptcy but you still have control over whether or not that actually happens. Your goal is to make sure that payments are made according to the agreement made with the creditor. In fact, professional debt agreement help is a legal move recommended by legislators so you can get financial relief.
Will it affect your credit rating?
As mentioned earlier, a debt agreement will reflect on your credit report for as long as the debt agreement stands. It will also appear in your National Personal Insolvency Index or NPII, which future creditors can check your record from. However, it will not be viewed in a negative way as bankruptcy is. If you were able to waive off the debt agreement on your personal life, then it only goes to show future lenders that you were able to pay off that debt.
What are the benefits of debt agreement?
There are several benefits that you can get by entering into a debt agreement versus filing for bankruptcy. For once, your travel will not be restricted and your annual income will not be subject to regular assessment. In addition, the court will not have the right to obtain your personal assets on behalf of the creditor. For more details please visit this site HTTPS://WWW.DEBTMEDIATORS.COM.AU/DEBT-AGREEMENT-HELP