In its most simple terms, a debt agreement is a debt settlement arrangement made between yourself and your creditors to settle your debts affordable. If a majority of your creditors (in value) agree to your settlement offer, interest is frozen and your affected creditors will not be able to take any fresh steps against you to recover their debts. Naturally there are consequences for those debtors wishing to propose a debt agreement and it should never be confused with a loan.
We are specialists in the preparation of debt agreements for Australians looking to avoid bankruptcy by taking advantage of laws designed to help people avoid bankruptcy and settle their debts affordably and in a reasonable time frame.
As a registered administrator of Part IX Debt Agreements, you contact us today on 02 9798 1580 or fill out an enquiry form to the right and a consultant will contact you shortly to assess your position and suggest relevant options given your circumstances.
AFSA Regulation is responsible for regulating insolvency practitioners including debt agreement administrators in order to ensure high national standards of personal insolvency practice and procedure.
A debt agreement is an option available for debtors to deal with unmanageable debts and a flexible alternative to bankruptcy.
A debt agreement can only be entered if the debtor is insolvent, which means someone who is unable to pay his/her debts as and when they fall due.
A debt agreement can be entered if a debtor has:
To assess your suitability for a debt agreement is call and speak with one of our debt consolidation consultants on 02 9798 1580.
Once the debt agreement proposal is drafted your creditors will then have the chance to vote upon. AFSA (aka Australian Financial Security Authority) will send your debt agreement proposal to each creditor, asking them to vote by a nominated date. The voting period is generally 5 weeks. The votes are then counted if AFSA receives ‘yes’ votes from a majority of creditors in dollar value, your proposal will be accepted.
No – it is an alternative to bankruptcy. Although a debt agreement is considered an ‘act of bankruptcy’, it is very different to bankruptcy. The following table illustrates the differences:
Must have a residential or business connection.
No residential or business connection required.
Ability to retain assets
Yes, subject to certain statutory conditions being met.
Rights of secured creditors are not affected. They can repossess asset if there is default in payment.
Upon discharge from bankruptcy, but not released from some types of debts.
Thousands of Australians each year are opting for a debt agreement as a means to deal with their unmanageable debt. This website has a wide range of useful information about debt agreements and debt settlement strategies, including: how debt agreements works; who can enter a debt agreement; how a debt agreement can help; benefits; how to apply and what debts qualify. Our trained debt management specialists are available on 02 9798 1580 to provide you with further assistance and to assess your finances.
A Debt Agreement is not for everyone and you need to be certain it’s the right choice for you. To help with this important decision, you should speak only to a trained expert.