Proposing a debt agreement is ‘an act of bankruptcy’. That is to say that you are formally declaring that you are insolvent.

Your credit reference file will be annotated to this effect for a period of 7 years.

The NPII will be annotated with your personal details and the type of administration entered into – forever.

You will find it difficult to obtain credit from major lenders during the term of the administration.

If you fail to honour the arrangement made the agreement may be terminated by creditors and all of their rights and remedies will be revived including back dating interest due.

You cannot make another debt agreement in the following 10 year period.

If you fail in your attempts to meet the obligations imposed by the debt agreement then bankruptcy may be your only course.