If you've received a debt agreement proposal, someone who owes you money is making a formal offer to renegotiate payments. They base their offer on what they can afford.
A debt agreement administrator[?] manages the proposal. You need to vote on the agreement to ensure you’re eligible to receive payments.
For creditors[?] to accept the proposal, a majority of the dollar value of creditors need to vote yes.
The proposal you receive should include:
- the proposal
- an explanatory statement
- statement of claim and voting (SOCAV).
During the voting period, most unsecured creditors are not able to try to recover the debt.
To find out more about the proposal, contact the debt agreement administrator.
In some cases you may receive a proposal to terminate an existing agreement. Normally the person who owes you money is no longer able to satisfy the agreement.
How long do I have to vote?
For your vote to count, complete the statement of claim and voting form (SOCAV) before the voting period ends.
The voting period is 35 days (except in December when it is 42 days).
For proposals to terminate an existing agreement, the voting period is 14 days (except in December when its 21 days).
We will not accept votes after the deadline date.
If creditors accept the agreement
- You must comply with the terms of the agreement.
- The debt agreement administrator manages repayments of the debts.
For more information see: The person is in a debt agreement, can I pursue payment?
If creditors don't accept the agreement
- Normally creditors can begin or continue recovery action.
- If the debt is over $5,000 you may apply to the court[?] to make the individual bankrupt.
For more information see: Making someone bankrupt