Call us on 1300 332 834

Part 9 Case Studies

Case Study 1:

John applied for a Debt Agreement and agreed to pay the debt agreement company a fee of $1450. Unfortunately for John, his Debt Agreement was rejected by his creditors. Because John was paying the debt agreement company their fee over 15 weeks (and not making any payments to his creditors), John was left with 15 weeks of unpaid debts in addition to being $1450 worse off.

John felt ripped off because the Debt Agreement Company didn’t have a refund policy. The debtor still had all the debts and was $1450 worse off.  

Case Study 2:

Susie contacted a Part 9 Debt Agreement Administrator for help with her credit card debts.

After looking at her options Susie agreed to submit Part 9 Debt Agreement as an alternative to bankruptcy. Susie agreed that she could afford $85/week for 3 years. Over and above this, Susie had to pay an application fee of $99 per week for 20 weeks.

Susie stopped paying her credit card debts because she couldn’t afford to pay an application fee as well as all her credit cards.

After 20 weeks, Susie had paid nearly $2000 in fees but her Part 9 Debt Agreement was rejected by her credit card companies. They wanted more money, but because the Part 9 Debt Agreement Administrator’s fee were so high, there wasn’t enough left to pay them. Now Susie has even more debt and has paid $2000 for nothing.

She called the Part 9 Debt Agreement Administrator but they wouldn’t refund her money even though they didn’t achieve the result they promised. Now Susie has to go bankrupt because that’s her only choice.

If the Part 9 Debt Agreement Administrator charges a fee that is unreasonable, this will limit the amount of money available for creditors. In this case, had the fees been more balanced, the result may have been different. Susie will never know.