I am having problems with making payments under the agreement

What happens if I miss a payment?

If you miss a payment (or you are late in making a payment) and you do not make good the default within a 3 month period, you will be in statutory default of your agreement and your administrator will need to report that default to your creditors.

Your creditors may then seek to have your agreement terminated.

If your circumstances have changed permanently, ie your pay conditions have changed and you can longer afford the repayments, or your expenses have changed it may be possible to change the terms of the arrangement to reflect these changes through what is known as a variation. This would normally only be undertaken if there is a change in circumstances and requires the creditors’ agreement. It is important that such a variation to the terms doesn’t happen too quickly after the start of your agreement because you won’t have had the chance to demonstrate your commitment to the process and the creditors may question your bona fides.

If you have any doubts regarding the affordability of your payments it is vital that you contact us immediately so the consequences can be discussed and the risk of your agreement failing minimised.

If you wish to put forward a variation proposal you will need to resubmit supporting documentation to verify your changed circumstances.

I’m struggling to make the monthly payment what should I do?

If the situation is temporary we may allow you to make a reduced payment and make additional payments in the future to rectify the position. If however, the arrears are not made good within 3 months we will be required under law to report the default to your creditors which may lead to your agreement being terminated.

In the event you feel it will be a permanent problem we recommend that you contact us immediately as you may need to consider a variation.

What happens if I am statutory default and have received a notice – what does this mean?

You will be in statutory default if you have failed to make the payments you were required (on the due dates) for a consecutive 3 month period. Under the Bankruptcy Act your administrator is required to report that default to your creditors which may prompt your creditors to terminate your agreement.

If you are in statutory default we would strongly recommend that you clear the arrears as soon as possible. If you are unable to clear the arrears as your circumstances have changed permanently you may need to consider a variation of your insolvency agreement.

What happens if I’ve missed payments and received a statutory default notice and there is no solution?

Once we receive all of the information regarding your revised financial position then we will be able to advise on appropriate solutions, including a variation of your insolvency agreement.

If we do not feel a variation is appropriate you may need to terminate your agreement and consider your other options which may include bankruptcy.