Part 9 (IX) debt agreement

What should I know about the Part 9 debt agreement?

Debt agreements are often used as an alternative to going bankrupt. This type of agreement makes it possible for people to overcome financial hardship that is causing them to default on loan repayments or fixed expenses.

Although the prime lenders are strict on lending money to borrowers who have been in a part 9 debt agreement, there are specialist lenders who can consider your application.

Please enquire online and find out whether you are eligible for a home loan despite having a bad credit history.

What do the banks think of a Part 9 debt agreement?

It is very difficult for the major banks to approve a loan if they know that you are under the part 9 debt agreement. This is because the prime lenders like to be very cautious when lending money to a borrower who has a bad credit history as they would be placing themselves in the risk of approving a loan for a borrower who cannot make the repayments on time.

However there are still ways around getting a loan approval for your situation. There are specialist lenders who can consider your debt agreement when you apply for a mortgage, however you will need expert advice to find out which lender will best suit your needs.

Please enquire online to speak to a mortgage broker who will work out the best lender for your situation.

Am I eligible for a home loan?

If you have previously been in a Part 9 debt agreement it will show up on your credit file and the banks are able to access this information when assessing your loan application. If the banks can see that you are no longer in a debt agreement then they may consider your loan for approval.

If on the other hand you are still currently in a Part 9 debt agreement, then the major banks will not consider your application at all.

However there are specialist lenders who are more flexible when assessing bad credit loans. Please enquire online and find out which lender can help you and your situation!

Is there an advantage to the Part 9 agreement?

Compared to being bankrupt, the Part 9 debt agreement is far more flexible and allows the borrower to have a number of options including:

  • Negotiating a system of periodic payments out of your salary which is set at a level that you can afford.
  • Having a moratorium arranged which is a temporary suspension of paying your debt.
  • A transfer of some of your property from you to your creditor in full or part payment of your debt.
  • Having an agreement with your creditor to pay less than the full amount of the debt that you owe.

With the flexibility of the Part 9 debt agreement you are able to apply for a mortgage and the lenders will not consider yourself as being bankrupt.