DEBT AGREEMENTINFORMATION BROCHURE

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The Lanyana Difference Registered Debt Agreement Administrators with the

Australian Financial Security Authority (AFSA), a government body who regulate Debt Agreement Administrators

When Choosing a Debt Solution provider, it is important to make the right choice.

Not all Debt Solution providers are the same. We want you to be comfortable with your choice. After all its your financial future. You need to know you are in the best possible hands.

Lanyana Financial Group is well recognized as an industry leader in providing debt solutions.

Industry Warning

Beware of Debt Solution providers who do not provide their qualifications or Licence Numbers.

If you have any questions about Lanyana Financial Group, its qualifications or licences speak to your case manager. We will be happy to provide the relevant information including licences, customer reviews or case studies.

Australian Credit Licence holders and are required to adhere to all responsible lending requirements with the Australian Securities and Investment Commission (ASIC)

We are a member of the Australian Financial Complaints Authority

We are a member of the Personal Insolvency Professionals Association

We have Bankruptcy Trustees who are registered with AFSA and members of ARITA

We have Corporate Liquidators who are licenced with ASIC and members of ARITA

We have in excess of 8 Chartered Accountants

We are a registered Tax Agent

Our clients appreciate our services – check out our Trustpilot Reviews, Google Reviews and Facebook Profiles

Building A Stronger Financial Futurefor You

Lanyana Financial Group are:(Clickable links)

A Debt Agreement is a legal and binding agreement between you and your creditors. It outlines a new payment arrangement which you can afford. After taking your household expenses and income into account we put forward a proposal to your creditors usually offering less than the full amount they are owed. A Debt Agreement is in place once your creditors agree to this sum of money in satisfaction of your debt.

A Debt Agreement will reduce your unsecured provable debts*, pause all future interest, reduce your repayment amounts, in most cases reduce the repayment period. The harassing phone calls and recovery action from your creditors will stop.

If the creditors agree to your proposed terms, your Debt Agreement is processed through a governing authority known as the Australian Financial Security Authority (AFSA). A Debt Agreement is also referred to as a Part IX Agreement. A Debt Agreement is legislated under the Bankruptcy Act, but is a preferred alternative to declaring full bankruptcy as it does not carry the same permanent or serious consequences.

About Part 9 Debt Agreements

An agreement with creditors to reduce & repay your debt under the Bankruptcy Act

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What is an unsecured debt?

It is a debt which is not secured by an asset, such as a house or a car.

Some debts are not provable such as:• Court imposed fees• HECS + HELP debts• Orders from proceeds of crime

How Does a Debt Agreement Work?

Your Debt Rescue Case Manager will gather details of your financial situation to create a budget. This budget will identify any surplus income you can use to repay your unsecured debts. A proposal based on this surplus amount is prepared by your Case Manager and forwarded to your creditors for their consideration and vote. If it is accepted by the majority of the creditors, you will be bound by the terms of the Debt Agreement.

If your Debt Agreement is not agreed on by the majority of your creditors, your Case Manager will review your financial circumstances and discuss alternatives with you.

Once your Debt Agreement has been accepted, it will be administered by Insolvency Administration Services. This is our Registered Debt Agreement Administrator handling the administration of our Debt Agreements. You will be required to make regular repayments into a Trust Account. Insolvency Administration Services will then distribute the money to your creditors as agreed in the Debt Agreement and maintain required correspondence with your creditors over its term.

There are certain guidelines and thresholds you must meet in order to be eligible:

• If you have been bankrupt or in a Debt Agreement before, you must have completed your Debt Agreement or term of bankruptcy at least 10 years ago.

• Your income after tax must be less than $86,800.35* net per annum, per applicant.

• The value of your unsecured assets (including equity in property) cannot exceed $231,467.60*

• Your unsecured debts must be less than $115,733.80*

* These amounts are correct as of 08 July 2019.

How to Qualify for Debt Agreement

Benefits of a Debt Agreement

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• It will provide you with a viable alternative to bankruptcy and the serious consequences and limitations that go along with it.

• You only need to make one easy regular payment. Insolvency Administration Services will administer all of the payments to your creditors on your behalf.

• Calls and harassment from creditors cease once they recognise we are working with you to find a solution and by law they must not pursue any recovery action after lodgement of the Debt Agreement with AFSA.

• Interest is frozen on all unsecured debts included in the Debt Agreement, provided you adhere to the terms of the Debt Agreement.

• It will allow you to significantly reduce the total amount you would otherwise have to repay to your creditors.

• The discipline of having one realistic repayment makes it easier to budget your money, allowing you to afford essential household expenses, previously sacrificed to pay off creditors.

• Insolvency Administration Services continues to communicate and negotiate with your creditors throughout the term of the agreement.

• We will continue to work with you to smooth out your circumstances or possibly help pay your agreement out early.

• Flexibility when your financial situation improves.

• Not all creditors need to agree to your proposal. You only need the majority of creditors (50.1% by value) who vote to agreeto the proposed, for the Debt Agreement to be accepted.

Phase 1: Assessment and Preparation

Your Case Manager will gather information on your financial situation from you and your creditors in order to start building your file. At the end of this process your Case Manager will have formulated a budget for you and will know a surplus amount you can dedicate to your Debt Agreement repayment.

Your Case Manager will require a number of documents to be returned before we can proceed. A list of these documents is on page 10. Once your Case Manager has prepared your Debt Agreement, it will be handed to our compliance team for checking and lodging with Australian Financial Security Authority (AFSA). AFSA will then allocate a reference number to your case and send the proposal to your creditors for voting.

Timeframe: Generally, 2-4 weeks.

Costs: An Assessment Fee is due in Phase 1. This is paid in regular, manageable instalments by you prior to lodgement of your Debt Agreement. Payment schedules are ongoing and any amounts paid above the invoice amount are held in trust and allocated to your Debt Agreement once approved.

Important: It is imperative to continue to make your Debt Agreement repayments on time and in full each week. Failure to do so may compromise our ability to negotiate with your creditors and could result in termination of the agreement.

Phase 2: Creditor Voting & Approval

In phase 2 everything is in place to begin negotiations with your creditors. Your Case Manager will officially hand your case over to the Insolvency Administration Services Team. Once your Debt Agreement has been submitted to Australian Financial Security Authority (AFSA), it will be distributed to each of your creditors for voting.

Your creditors have 35 days to vote on your Debt Agreement. You need the majority of your creditors to vote in your favour in order for it to be approved. Our Registered Debt Agreement Administration Company, Insolvency Administration Services have extensive experience negotiating with all major creditors ensuring the proposal prepared is considered acceptable by creditors and manageable for you.

Timeframe: 6 weeks. Within this time frame, creditors are given 35 days to vote on your Debt Agreement.

Costs: All lodgement fees are included in the Debt Agreement payments.

An Application fee of $1,490 is charged just prior to Phase 2 for the preparation and lodgement of the Debt Agreement and extensive negotiations and communications with your creditors. The Application fee is built into your affordable Debt Agreement repayments and is paid off over time.

• If you don’t meet the terms of your Debt Agreement or make your payments in full and on time, the creditors are within their rights to recommence collection proceedings, legal action or enforce bankruptcy.

• The Debt Agreement will be noted on your credit file for a period of 5 years.

• As it is an Act of Bankruptcy, your name will be listed on the National Personal Insolvency Index while you are in the agreement –

generally for a period of 5 years.

• Not all debts can be included in a Debt Agreement. Secured debts and some state debts (eg. fines) cannot be included (eg. home loans, car loans and fines).

• A Debt Agreement does not release another person from a joint debt.

• There may be some restrictions to employment or licensing in certain industries.

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Consequences of a Debt Agreement

Debt Agreement Process and Costs

Debt Amount

$10,000 - $20,000$20,001 - $30,000$30,001 - $50,000Debts over $50,001

Fee

$495 inclusive of GST$990 inclusive of GST$1,490 inclusive of GST$1,990 inclusive of GST

Debt Agreement Process and Costs

Phase 3: Approval and Repayments

After achieving a successful outcome with your creditors the administration of your Debt Agreement commences. At this point you need to ensure all Debt Agreement payments are paid by the due date and in full. Insolvency Administration Services will distribute the appropriate funds to each of your creditors and collect our professional fees.

Insolvency Administration Services continues negotiations with your creditors where needed and attends to all communication with your creditors in relation to your debts.

Timeframe: Varies depending on your proposal and Debt Agreement

Costs: For administration of the Debt Agreement, 25% (inclusive of GST) of the total balance of debt repayments will be collected as part of the ongoing Debt Agreement repayments to be made by you. No extra repayments are required on top of your agreed affordable amount. All Debt Agreement payments will be made into a trust account and distributed as creditor repayments or fees.

Important: All fees are still payable if you pay out your agreement early or terminate the agreement. There are no additional fees for early payment of the agreement.

When your engagement is finalised, your Case Manager will send you some forms to complete and request the following:

Copy of Drivers Licence or Passport

Your most recent payslips for you and your partnerIf self-employed, or you have ATO debts we need all tax returns and Business Activity Statements up to date

If trading as a company or trust we require tax returns, recent income and expenses and balance sheet of the company.

Centrelink Statements

Recent statements and letters of collection on all loans and debts. Full disclosure of all debts is very important even debts not included in the Debt Agreement

A bank account statement of the account to be debited for payment of your agreement.

We will provide forms to complete to assist in forming a budget which ensures you will have enough money outside your Debt Agreement payment to meet living expenses. You will need to provide us with a list of all regular and one-off payments in this budget.

Substantiation of your situation. Any medical certificates or proof of hardship documents including a statement with dates and information. Supporting documents ensure we are able to achieve the best possible solution.

What You Need To Provide

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Money Back Guarantee

If we are unable to provide a positive solution all fees are 100% refundable.

What You Must Do

• You will need to continue to make repayments on all debts not included in the Debt Agreement, such as your mortgage or secured car loan.

• If you wish to cease making creditor payments, you must cancel any direct debits you have in place for all debts included in the Debt Agreement. We cannot cancel these for you. Your Debt Agreement repayments will take over the repayment of these debts when approved.

• We suggest you change your bank account so your income and any money you have is deposited into a new financial institution you do not owe money to.

• You must cease to use accounts, credit cards or suppliers associated with debts in the Debt Agreement.

The Next Step

If you would like to proceed with a Debt Agreement, follow this simple 3 Step Process:

Please read, sign and return the enclosed Authorities allowing us to act on your behalf and speak to your creditors, getting them off your back!

Please complete your bank account details and give authorisation on the enclosed eziDebit Direct Debit Authority. These payments will go towards payment of your Debt Agreement and our Assessment Fees.

Arrange to have sufficient funds available to pay our Assessment Fee so we can get started on your file. This can be paid over a number of weeks, but the sooner we can collect our fee, the sooner we can start work on your file and the sooner you will be free from debt.

Once you complete our 3 Step Process you will receive further instructions from us to progress your file to the next stage.

If you have any questions or queries throughout our engagement process, please feel free to give me a call on 1800 00 3328.

Step 1

Step 2

Step 3

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Giving Australians a Fresh Start to a Positive Financial Future

What do I tell Creditors when they ring me?

”I am struggling with my finances and can’t afford to make repayments. I have contacted Debt Rescue to provide a solution to all my debts. They have authority to talk on my behalf on all my accounts. Please feel free to contact them on 1800 00 3328. Thank you for your call.”

Once your engagement is finalised written authority is provided to your creditors, if contacted please collect creditor name, contact number, order reference number to provide your case manager.

After Phase 2 you need to tell them “Insolvency Administration Services is now dealing with this matter and has the authority to act on my behalf. Please feel free to contact them on 07 5343 1122.”

Quoting your Debt Agreement reference number will confirm your Debt Agreement status and ensure contact stops.

Will a Debt Agreement affect my credit rating?

The Debt Agreement will affect your credit rating for a period of 5 years from the AFSA processing date. Once you have completed your Debt Agreement, it will be removed from your credit file and the NPII. This will leave you with a clean slate from which to rebuild your finances. We have access to a panel of lenders who are willing to lend money to individuals who have completed a Debt Agreements at competitive rates.

I am only on Centrelink payments. Can I still enter into a Debt Agreement?

You might still be eligible for a Debt Agreement despite being on Centrelink or pension payments, provided you can afford the regular Debt Agreement repayment. However, we will explore all other debt solution options available to you before suggesting a Debt Agreement.

What debts can be included in a Debt Agreement?

Just about any kind of debt can be paid off or become eligible to be settled through a Debt Agreement. Some of the many examples of eligible debts include unsecured personal loans, discontinued or unpaid electricity or gas bills, disconnected phone line bills, credit cards, Centrelink overpayments, mortgage foreclosures, joint debts and repossessed cars. Certain debts cannot be included such as: fines, HECS debts, rates and strata title fees on current properties and secured home and car loans.

How long will my Debt Agreement last?

While the specific terms and conditions of each Debt Agreement are unique and particular to the individuals and lenders involved, in general, the average Debt Agreement typically lasts between 3 to 5 years.

Frequently Asked Questions

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Are you ready to take control of your debts and explore the benefits of a Debt Agreement?

Debt Rescue Processing Pty LtdABN 65 110 921 867

1800 00 3328

1800 88 3026

info@debtrescue.com.au

debtrescue.com.au

PO Box 307 Noosa Heads QLD 4567

Debt Rescue is a proud partner of Lanyana Financial Group.