In its simplest terms, a debt contract is a debt settlement agreement that is concluded between you and your creditors to pay off your debts at an affordable price. If the majority of your creditors (in value) accept your settlement offer, the interest will be frozen and your creditors will not be able to take further action against you to recover their debts. Of course, there are consequences for debtors who want to propose a debt contract and it should never be confused with a loan. A debt contract is an agreement that you can enter into with your creditors if you can no longer afford to repay the debt. Only those who have been facing debt for some time can enter into a debt agreement. A debt contract is actually an agreement with your creditors to pay an agreed amount over a certain period of time (usually between 3 and 5 years). In most cases, you can pay your debts for less than what is due and the balance will be legally depreciated. (f) Informing the official recipient within 5 days of the date of the end of the agreement 11 3.9 A company may be registered as a debtor agreement manager if: 3.11 Overall administrative responsibility in this context involves making important decisions about the practice and procedures for the company and includes the supervision of the company, its employees , its agents and brokers, envelope and finances, training authorization and authorisation to implement systems and processes. You don`t need to be the person who specifically deals with individual debt contracts.
If more than one person is responsible for the most important decisions of the company, if it is not a registered agent, each person must be registered as a director. The inspector general must ensure that anyone responsible for the business activity under the debt agreement is a registered director and does not only accept the company`s assurance that all of these persons have been registered. 3.19 To meet this requirement, the insurance policy should cover civil liability for losses or damages to creditors or other acts, errors or omissions by the trustee or their employees in the provision of debt, including. (b) negligence, deceptive or deceptive behaviour or breaches of professional, fiduciary or legal obligations. The proposed debt contract contains a summary of your financial affairs as well as your proposal to settle your debts. The GDR must certify that the proposal is sustainable and affordable. Once the proposal is submitted to AFSA, AFSA will forward the proposal to your creditors and they will have 20 working days to vote on it.