Part IX Debt Agreements

If your debts are out of control and you see no way out then a Part 9 Debt Agreement could be your saviour.

Are you overwhelmed with debt?

Avoid bankruptcy with a Debt Agreement

Do you feel yourself spiralling towards bankruptcy? Stop what you’re doing and see if you are eligible for a Part IX Debt Agreement here. It could literally change your life.

Otherwise known as a Formal Debt Agreement, it involves an authorised administrator negotiating a legally binding agreement with your creditors to settle a portion of your unsecured debts over a set period of time.

If approved, your debts will be combined into one with reduced repayments and/or a reduced total debt amount.

This is a great opportunity to become debt-free, although there are a few things to consider, which we discuss further down this page.

Apply in less than 5 minutes:

Avoid bankruptcy with a Debt Agreement

What is a Debt Agreement?

What is a Debt Agreement?

Example of credit card debt consolidation
  • Debt Agreement services can be offered by valid AFSA registered debt administrators, such as our affiliate, Debt Fix.
  • A Debt Agreement allows you to pay a percentage of your total debt or to repay the debt over an extended period, depending on your financial capacity.
  • To start a Part IX Debt Agreement, your administrator will negotiate with your creditors, who will then vote on the proposal. If creditors representing more than 50% of the total debt agree, the entire agreement is approved and comes into effect.
  • Once the agreement is active, your debts are combined, interest is immediately frozen, and you will only make payments to the administrator for the duration of the agreement.
  • After completing a Part 9 debt agreement, any debts that were completed will be 100% cleared.

A Part IX Debt Agreement is a great solution to manage your debts, however there are some factors to consider. These are discussed in greater depth further down this page, but include:

Only unsecured debts can be included Entering into a formal debt agreement will have an impact on your credit history There is a set eligibility that must be met Debt agreements fall under the bankruptcy act 1966.

Get debt support today with our help.

A Part IX Debt Agreement is a great solution to manage your debts, however there are some factors to consider. These are discussed in greater depth further down this page, but include:

Only unsecured debts can be included Entering into a formal debt agreement will have an impact on your credit history There is a set eligibility that must be met Debt agreements fall under the bankruptcy act 1966.

Get debt support today with our help.

Key Benefits Of Part IX Debt Agreements

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Reduced debt amount

Depending on your situation, the creditors flexibility and your administrator’s competency, you are likely to pay significantly less than you were before the commencement of the debt agreement.

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Only pay the administrator

You will make payments to the administrator, who distributes the funds to creditors. This means you only have 1 regular payment to worry about.

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Clear route to becoming debt free

Once all payments are made, you will released from the included debts. This means your dreams of life without debt can come true.

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It’s in creditors best interest to approve

A debt agreement offers creditors a chance to recover some of their money, which they wouldn’t receive if the client filed for bankruptcy, making them more likely to agree.

Part IX Debt Agreement - considerations

Only unsecured debts can be included

Only unsecured debts such as credit cards, personal loans, and medical bills are covered. Secured debts like mortgages are not included.

Credit history impact

A Part IX Debt Agreement is listed on the individuals credit file for five years (or longer in some cases), affecting their ability to obtain credit during that time.

Must meet eligibility criteria

To qualify, the individual must be insolvent (unable to pay debts on time) and meet specific debt, income, and asset limits set by the Australian Financial Security Authority (AFSA). They also must not have been bankrupt or entered a Part IX debt agreement in the past 10 years.

Falls under bankruptcy act

A Part 9 Debt Agreement provides a formal legal framework that protects both the individual and creditors, allowing for reduced payments and preventing further legal action on included debts. However, it remains on your credit report for five years, and non-compliance can lead to termination and potential bankruptcy.

Why should I apply for a formal debt agreement

Why should I apply for a formal debt agreement?

Australian Lending Centre work with Debt Fix Pty Ltd to provide Part IX Debt agreements and help Australians out of debt.

Apply with no obligation by hitting the button below. If we can’t help, then we can automatically fast-track you to our partner, Debt Fix who could.