What is a debt agreement?
- A debt agreement or part IX agreement is an agreement that binds you and your creditors and represents an alternative to bankruptcy for those with unmanageable debt.
- A debt agreement allows for your release from your debts when you satisfy all obligations including all payments under the agreement. The terms may require:
- periodic payments from your income;
- postponement of payments for a certain amount of time;
- asset sales; or
- a lump sum payment to creditors.
Read some more FAQS from our Bankruptcy section