Insolvency

What is a Part IX Agreement

• A legally binding agreement to pay of debt via an arrangement , saving a customer having to negotiate directly with their creditor

• Where a trustee charges you a fee to sell all your assets and resolve payment in full for all your debts

• This is where your creditors agrees to accept an amount of money that you can afford to pay over a set period of time, to settle all your debts. It may be the full amount or a reduced amount but is typically paid over a 3 or 5 year period and is interest free. 70% of the total creditors need to agree with the proposal in order for a Debt Agreement to be accepted.

• I don't know something about creditors voting

What is one major impact/consequence of declaring voluntary bankruptcy

• Assets will be sold

• Jail time

• Get to start again with clean slate

• Won't be able to work again

If a customer advises they are thinking about declaring bankruptcy what is the maximum amount of time we should hold off collecting on the account?

• 5 years

• 21 Days

• 5 Weeks

• 10 Days

If a customer advises you, "I am thinking about bankruptcy, I’ll pay $$ to finalise or I will just go bankrupt" The offer is way under what you can accept. What would be a good way to respond?

• That is your choice, I can't accept your offer

• Are you aware of the implications of bankruptcy?

• Just ignore them and continue negotiations

• Nothing, panic and hang up

Your customer advises they are talking to Foxsymes. What information should you seek to understand? (more than one correct answer)

• Contact Details of their representative.

• Are you considering a Debt Agreement or Full Bankruptcy?

• What stage are you up to?

• How can you afford to pay them if you can't afford to pay the actual debt?

Your customer advises they have declared bankruptcy, what piece of information should you be seeking from them?

• For this to be sent to us in writing

• Nothing, I'll just let our client know

• A list of all their debts

• The AFSA Reference Number

What is important to remember about Authorised Representatives from Debt Solution Companies?

• They are much easier to deal with as they won't get emotional when you are talking to them

• They don't always have the customers best interest at heart!

• They can be a bit shady so I need to really challenge them in negotiations

• These organisations whilst accepting a fee to make an application for insolvency will not be proactively following up with the customer, whilst they will provide you an update they are not always motivated to drive the customer to an outcome

How long will the customer's name appear on the National Personal Insolvency Index?

• 5 Years

• Forever

• 3 years and 1 day

• 6 years

Can a petition for bankruptcy be rejected?

• Yes

• No

• Maybe

• Don't know

How long does it normally take AFSA to assess the petition for Bankruptcy

• 21 days

• 14 Days

• 24 -48 hours

• 28 Days