Debt management firms have been accused of pushing a form of insolvency aimed at the poor to an all-time high.
New data released by a federal agency on Tuesday revealed that the number of Part IX debt agreements has risen for the 12th year in a row.
Agreements under Part IX of the Bankruptcy Act are widely marketed as debt solutions to Australians with mounting credit card or mortgage debt. Only low-wealth individuals can use them.
The number of these agreements increased in the 2015-16 financial year to a total of 12,150 up 11.3 per cent on the previous year, the Australian Financial Security Authority reported this week.
In 1997-98, the agreements constituted only 1.4 per cent of all personal insolvencies. Today, they account for more tha…
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