I entered into a debt agreement 4 months ago. Recently my personal circumstances changed meaning I cannot meet the agreed payment amount. Am I able to request a lower repayment amount and amend my debt agreement?
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Answer by Kelly Angus, Adelaide 5000 SA
- You may request to amend your agreement by lodging a variation proposal.
- You or any one of your creditors may request to terminate the agreement if its terms are not being followed.
- Creditors vote on a proposal to vary or terminate in the same way they voted on the original proposal.
- If creditors reject the proposal for variation or termination the agreement will remain in force however you or any one of your creditors can apply to the court for the termination of the agreement.
- The agreement will terminate automatically if:
- you have not made any payments for six months after a payment is due; or
- you do not complete your payments within six months of the agreement’s completion date.