Processing a Debt Agreement Variation or Termination
These two outcomes both require changes to the Debtor Contributions. You can see the current position of the debtor, including payments made and arrears through Monitoring the debtor contribution process and follow ups.
If Variation changes the payment schedule update the original Debtor Contribution - Entering Debtor Contributions.
- Depending on the type of change you may extend the current schedule (Total Gross amount of Contribution remains the same) by changing the Last Payment Due Date or Number of Payments due; or
- if the the Total Gross amount of Contribution is changing you would reduce this amount to the amount already received so that the Total Liability equals Total Received, end date the Contribution, and create a new Debtor Contribution - Entering Debtor Contributions.
If the Variation changes the debt balances:
- Reject the Total Admitted per debt to the new balance plus the Dividends already under Total Distributed. Update the Reasons for Rejection to Variation.
*Note* Under Claim tab, use the field Memo/Notes on Claim to leave detailed notes such details of the variation as this is a current reporting field.
- This process leaves the total to still be paid in the Administration as the agreed amount in the variation. Total Admitted minus Dividends equals varied balance still due.
- A record of this change, aside from file notes and the audit trail, always exists in your Unsecured Creditor Control account.
- You can do this manually per debt or via the same import process used when first setting up the Debt Agreement - Accepted Debt Agreement Setup - Importing Creditors
- End date the contributions schedule originally created - Entering Debtor Contributions
- Click the End: ... to run the Finalisation Wizard.
- Select the Finalisation Date, Next, then Finish.