At Debt Management Singapore we have a proud and successful history of helping people just like YOU, solve their debt problems, improve their finances, avoid bankruptcy and get their life back on track, with a legally binding Personal Insolvency Agreement.
To help explain how you can avoid bankruptcy, get your finances back on track and remain debt free, with a legally binding Personal Insolvency Agreement, we have provided answers to the most frequently asked questions.
If you would like any further information on Personal Insolvency Agreements, please call our friendly staff on 6733 7479
What is a Personal Insolvency Agreement?
A Personal Insolvency Agreement is an agreement you can reach with your credit providers if you can no longer afford to repay an outstanding debt. Only people who have been struggling to cope with debt for some time can request a Personal Insolvency Agreement. A Personal Insolvency Agreement is essentially an arrangement with your credit providers to pay a pre-determined amount over an extended period of time (generally this ranges from 3 to 5 years). In the majority of cases you can settle your outstanding debts for less than what is originally owed and the remaining balance will be legally written off.
A Personal Insolvency Agreement is regulated under the Bankruptcy Act so it is a formal agreement and as such it must be supervised by a Registered Personal Insolvency Agreement Administrator. Many people think that because it is regulated under the Bankruptcy Act, it is bankruptcy, but it should never be confused as bankruptcy. A Personal Insolvency Agreement is a legal, cost-effective and easy to manage alternative to bankruptcy.
Why should I apply a formal Personal Insolvency Agreement?
There are many benefits and advantages to applying for a Personal Insolvency Agreement (especially if you compare these benefits to bankruptcy). These advantages are briefly listed below:
- Interest on your debt can frozen
- You only have to pay back what you can afford to repay (and the outstanding balance of the debt will be legally written off)
- All creditor enquiries and communications will be handled by our team (so you won’t be hassled by your credit providers)
- Once your debt agreement is accepted, your existing assets will be protected from most enforcement or debt collection action (compared to bankruptcy, where most assets will be sold)
- You will be free to travel overseas (compared to bankruptcy, where you won’t enjoy this freedom)
- You won’t be subject to a yearly assessment of your income (compared to bankruptcy, where you will be subject to a yearly assessment of your income and may need to pay mandatory contributions and these generally increase if you earn more)
What debts can go into a Personal Insolvency Agreement?
Much like a Debt Agreement Plan, only unsecured debts can be resolved using a Personal Insolvency agreement, so generally this would include credit card debts, personal loan debts, store card debts or any financial shortfall on an old unsecured debt.
Who should I deal with and trust to organize a Personal Insolvency Agreement?
You should only ever deal with a Registered Personal Insolvency Agreement Administrator
Here at Debt Management Singapore, we are a fully Registered Personal Insolvency Agreement Administrator and we can help you organize the ideal Personal Insolvency Agreement for your personal situation. Our expert Debt Consultants want to help YOU find the best solution to resolving your financial troubles. In fact, we won’t charge you any fees at all until we have fully qualified you as being eligible for a Personal Insolvency Agreement.
To find out if you qualify for a Personal Insolvency agreement from Debt Management Singapore, contact our expert team on 6733 7479 for a FREE financial assessment!
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