More people can get a debt agreement
New laws raise the threshold limits to allow more people to access debt agreements, an alternative to full bankruptcy for people with consumer debts like credit cards, store cards and personal loans. Debtors who can’t afford, on their current income, to make all their repayments and pay their bills can declare themselves insolvent to stop creditor action.
The debtor can then propose an affordable repayment plan contained in a debt agreement. Many debt agreements propose paying 50 cents in the dollar of each debt. Debtors with an after tax income of less than $66,284.40 and net property valued at $88,379.20 or less with unsecured debts of $88,379.20 can propose a debt agreement.
Source: Herald Sun