3.22 These tasks relate to the certification of the administrator attached to the proposed debt agreement in paragraph 185C (2D) of the Act. At the time of submitting the proposed liability contract to the official liquidator, a director must confirm that: (f) must notify the official recipient within 5 days of the end of the agreement 11 4.5 if a director is no longer eligible, any company whose person is the director also does not have the right to be a director and the registration of the company must be cancelled. 4.2 The following information contains guidelines on the issues that the Inspector General takes into account when deciding whether a director`s registration should be cancelled. If you are really unable to pay off your debts when they mature, you may be able to agree with your creditors to pay a reduced amount, defer certain repayments, reduce the interest rate and/or reduce your repayments. If you are in a financial emergency and cannot repay your loans (including credit cards), you may also have rights under the National Credit Code: See fact sheet: Financial emergency. Debt contracts are a formal alternative to bankruptcy under the Bankruptcy Act for insolvent individuals (unable to pay their debts when they mature). As part of a debt agreement, your unsecured creditors agree to accept less than the total amount of debts due in return for a commitment you made to make regular repayments for an agreed period. As of June 27, 2019, debt contracts are limited to a maximum of 3 years or 5 years during which you own or pay your home. The documents they send to you contain a proposal for a debt contract and a declaration of cases submitted to the Australian Financial Security Authority (AFSA).
However, entry into a debt contract is considered an act of bankruptcy which can then form the basis of a creditor to bankrupt the debtor. 3.6 The fact that anyone who assumes overall responsibility for a company`s activity in the debt contract must be either a registered director or a registered agent (for more information, see Who can apply). Some people may benefit from a debt contract, for example, if you have an asset like your home to protect that you could not keep if you went bankrupt. If you are considering signing up, consider the following: Financial Rights strongly recommends that you do NOT sign up for a debt contract without first seeking independent advice from a free accredited financial advisor. Our information sheet on debt agreements contains more information. If you are unable to meet your debts, you may want to consider bankruptcy or an alternative to bankruptcy called the “debt agreement.” These are formal legal options that are available under the Bankruptcy Act 1966. Assessment of the ability to perform a director`s duties satisfactorily- 6 4.17 This provision under Section 186M of the Act does not apply as of June 27, 2019, when all debt managers must be registered to submit proposals to the official beneficiary. AFSA sends the proposal and explanatory statement to your creditors and asks them to explain their debts in detail and vote on the proposal. A debt contract is not the same as a debt consolidation loan or informal payment agreements with your creditors. 4.11 A director`s activity is also monitored and, if there are periods when a director has ceased to operate, this may result in requests to determine whether the director has retained his or her knowledge and skills.
3.15 However, in order to ensure that no unnecessary regulatory effort is imposed on individual directors acting on behalf of a corporate director, these individuals are not required to manage personal liability and loyalty insurance on their behalf if they meet all the following conditions: 3.1 As of June 27, 2019, registration as a debtor contract manager is mandatory.  U