Debt Agreement

Using the Part IX Debt Agreement to Eliminate Debt in Australia

A Debt Agreement, also known as a Part IX Debt Agreement, is a good tool to consider using if you are having money troubles.

The limited information we can give you here on these pages will give you an overview of a Debt Agreement but before you jump into any solution it would be prudent to discuss your situation confidentially and for free with an experienced insolvency expert. That is why we have provided this online free consultation request form for you to complete so we can have an expert contact you to discuss your specific situation with you and plan a way to help you get out of debt.

What Every Australian Needs to Know About the Part IX Debt Agreement

• A Debt Agreement may be a low cost alternative to bankruptcy.
• The legally binding agreement between you and your creditors helps to define the agreement between the debtor and creditor.
• There is concern that many who enter a Debt Agreement are just stalling an inevitable bankruptcy if they do not enough spare enough income each month to afford a reasonable Debt Agreement payment and set aside a reasonable amount for emergencies and contingencies.

Some of the advantages of a Debt Agreement include:

• A repayment plan that allows a payment of less than the full amount of all or any of the debts.
• A payment holiday or moratorium on payment of debts.
• A transfer of property from the debtor to one or more creditors in full or part payment to help satisfy the obligations.
• Periodic affordable payments out of the debtor's income to creditors.

A Debt Agreement may be entered by someone that:

• Has not been bankrupt, utilised a debt agreement or given an authority under Part X of the Bankruptcy Act in the last 10 years.
• Has an after tax income of less than about $57,765.75.
• Has unsecured debts of less than about $77,021.00.
• Owns property not exempt under bankruptcy valued at less than about $77,021.00.