Which consumer debtors decide to enter a Part IX agreement?

Beal, Diana and Delpachitra, Sarath and Mason, Rosalind and Troedson, David (2004) Which consumer debtors decide to enter a Part IX agreement? Australian Business Law Review, 32 (1). pp. 7-16. ISSN 0310-1053

Abstract

The spectacular growth in popularity of Part IX debt agreements raises the question of whether this insolvency option is fulfilling the task for which it was designed, ie providing a viable low cost alternative to bankruptcy for low-income insolvents with few assets and few creditors. This research indicates that, while such agreements are the preserve of the less affluent because of their qualifying limitations, they are not the preserve of the least affluent among insolvents. Overall, the results reflect that those factors that indicate a higher probability of success in meeting a repayment schedule (whether through financial capacity or predisposition) underlie the decision to propose a debt agreement rather than choose bankruptcy. These factors may include residential stability, employment, higher income and asset levels, and a history of regular repayments prior to an unexpected event such as unemployment. However, research into the factors that contribute to the successful completion of Part IX agreements is still needed.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Awaiting copyright permission for Published version. Author's version unavailable.
Depositing User: ePrints Administrator
Faculty / Department / School: Historic - Faculty of Business - Department of Finance and Banking
Date Deposited: 09 Aug 2009 08:20
Last Modified: 02 Jul 2013 23:22
Uncontrolled Keywords: Part IX debt agreements
Fields of Research (FOR2008): 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150299 Banking, Finance and Investment not elsewhere classified
Socio-Economic Objective (SEO2008): B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900199 Financial Services not elsewhere classified
B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services
URI: http://eprints.usq.edu.au/id/eprint/5549

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