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Here’s how it works:

Phase 1: Assessment & Preparation

One of our Case Managers will be in touch to discuss your current position and the options available to you. In this phase, they will go through your budget and financial position in detail, to identify all the debts you wish to include in the Debtstroyer Agreement and how much you can afford to put towards your debt. They will also establish how your financial hardship arose. Being in financial hardship through no fault of your own is a key criteria to a Debtstroyer Agreement.

Through this phase you might be asked to sign and provide documents and you case manager will contact your creditors to confirm your debts.

Phase 2: Creditor Negotiation

In phase 2, your case Manager will start negotiating on your behalf looking to achieve a permanent solution for your debts. Initially they may only be successful in negotiating a short term arrangement with ongoing discussions to renegotiate a permanent solution after a period of time. These negotiations may take some time to complete depending on your creditors and your debts.

Your Case Manager will work to reduce your debt amount, freeze your interest and work out a sustainable repayment plan.

It is only at this stage that we begin to act on your behalf so the harassing phone calls and emails from your creditors should cease.

Phase 3: Approval and Repayments

Once your creditors agree to the Debtstroyer proposal put forward, your repayments will start being distributed as per the agreed terms. Your Case Manager will continue negotiations where required and maintain open lines of communication between you and your creditors.

Timeframe

As each Debtstroyer Agreement is tailored to the client, it is hard to know exactly how long the process will take. In order to ensure your Case Manager can start negotiations as soon as possible, it is important to provide any documents, forms and payments to your Case Manager as soon as you can.

As a general rule of thumb, Phase 1 can take between 1-2 weeks. The faster you provide the required documents, the quicker your Case Manager can get started on your proposal.

Phase 2 can take a few weeks, or a few months depending on your debts. Your creditors will have 21 days to vote on the proposal put forward by your Case Manager. If they vote against it, your Case Manager will renegotiate and submit a new proposal, which will give your creditors another 21 days to decide. Your Case Manager might be able to negotiate a short term arrangement while a more permanent solution is discussed.

Phase 3 and the repayment of your Debtstroyer Agreement depends on your financial situation. If you are able to repay your debts with a lump sum repayment it could be over in a number of weeks. However repayment arrangements can be negotiated to last for a number of years.

Costs

Debtstroyer exists to help you out of debt, not to get you into even more financial trouble, so we have made our fees affordable and easy to repay. An assessment fee is charged upfront in Phase 1 to cover the administration costs of preparing your proposal.

Once you begin phase 2, you will start to make repayments into a trust account. These repayments are calculated in phase 1 and is the surplus amount left in your budget once all your living expenses and bills are covered. These repayments will go towards your assessment fee, which allows for the ongoing negotiations with your creditors in phase 2.

Once the Assessment fee has been paid, the repayments will then be used to repay your debts outlined in the Debtstroyer Agreement. Any finds remaining in the trust account once your Debtstroyer Agreement has been repaid will be returned to you in full.

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