My insolvency agreement has been approved by my creditors

What do I need to do next?

  • Don’t forget to advise us if you have any changes in your circumstances
  • Ensure that you put aside sufficient money to pay your agreed contributions as stipulated within your proposal
  • Ensure you keep to your budget (this will ensure you successfully complete your agreement)

How will my monthly contributions be taken?

All contributions must be made by direct debit or salary deduction. We don’t accept payment by any other method. It is critical that your contributions reach us before the due-date, otherwise you will fall into arrears which will need to be reported to your creditors and could lead to your agreement being terminated.

It is your responsibility to make sure that the payments are made in time and in accordance with the agreement. If you have any concerns regarding this please contact us immediately.

What will happen to my home?

If you own your own home and it was properly disclosed in your proposal, it will be protected under the agreement (assuming you continue to make the required payments).

If you fall into arrears (ie you fail to make payments on time) your agreement may be terminated which could place your home at risk again (ie your creditors could force you into bankruptcy).

My proposal included the provision that I had to sell some assets – when should I do that?

Sometimes the agreement provides that you must sell an asset. If your agreement stipulates this requirement, we recommend that you place the asset on the market as soon as practical.

I continue to receive mail and phone calls from my creditors – what should I do?

Contact us immediately so we can contact that creditor that continues to call you.

Creditors are not permitted to contact you whilst your agreement is in place.

Will my lifestyle change whilst I am in the agreement?

We have drafted your agreement, so you will have sufficient funds to live comfortably. However, we haven’t allowed sufficient funds which would allow you to:

  • buy new assets (such as new a car or household furniture); or
  • go on luxury holidays

We strongly recommend that you place your budget on the fridge where you can see it daily so you can regularly review your expenditure. Remember not all items in your budget will be paid each month (like car registration, car insurance, car maintenance etc).

We therefore recommend that you put this money to one-side (or even a separate savings account) so you will have the funds available when you need to access them.

My pay date has changed so my contribution will be late – do you need to know?

If you need to change your pay date, please contact us immediately. If the funds are not in your account on the due-date you will be charge a dishonour fee and your agreement will fall into arrears.

What changes do I need to tell you about?

If there are any changes to your circumstances that could affect your ability to meet your obligations under the insolvency agreement then you should contact us immediately. You should also contact us if you receive any unexpected large payments such as inheritances as these could affect your insolvency agreement.

You should also ensure that you notify us of any address or telephone number changes.

What happens if I forgot to tell you about an additional creditor?

It would have been explained to your during the process of drafting your agreement that is was your obligation and responsibility to inform us about all of your creditors and it is an offence under the Bankruptcy Act not to disclose all creditors. We may need to refer it as offence to the Insolvency Trustee Service Australia for further investigation.

Additional debts may be included in the agreement, however, depending on the value we may need to contact all of your creditors and seek a formal variation to the agreement. The variation would need to be approved by the majority of creditors.

When do my creditors receive their dividends?

The agreement stipulates when dividends are to be paid. Most dividends are paid quarterly but check your debt agreement proposal.