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Take Back Financial Control
with a Part IX (9) Debt Agreement

Are you overwhelmed by mounting credit card bills or payday loans? A Part IX (9) Debt Agreement (Debt Agreement) offers a legal, binding solution to help you regain control of your finances. This agreement, made under Part IX (9) of the Bankruptcy Act 1966, allows you to create a new, affordable payment plan for your unsecured debts. 

What is a Debt Agreement?

A Debt Agreement is a formal arrangement between you and your creditors. It’s designed to reduce your debt, halt further interest accrual, lower your repayment amounts, and typically shorten your repayment period to 3 to 5 years. While it’s a form of bankruptcy, it differs significantly from full bankruptcy by providing more manageable terms and fewer severe restrictions.

Staying on target

Benefits of a Debt Agreement

  • Single Monthly Payment: Combine all your debts into one easy-to-manage payment.
  • Lower Repayments: Agree on an affordable repayment plan that fits your budget.
  • Debt Reduction: Negotiate a reduced amount to repay, making it easier to clear your debts.
  • Pause Interest: Future interest on your unsecured debts is paused, preventing further financial strain.
  • Lower Repayments: Agree on an affordable repayment plan that fits your budget.
  • Single Monthly Payment: Combine all your debts into one easy-to-manage payment.
  • Asset Protection: Unlike full bankruptcy, your assets are generally protected, helping you maintain stability.
  • Shortened Repayment Period: Complete your repayments within a 3 to 5-year timeframe, freeing you from debt sooner.
  • Creditor Relief: Alleviate creditor pressure and prevent legal action against you.
  • Payment Administration: Revive Financial will administer all of the payments to your creditors on your behalf.
  • Majority Approval: Not all creditors need to agree to your proposal. You only need the majority of creditors (50.1% by value) to agree for the Debt Agreement to be accepted.

Considerations and Consequences

While a Debt Agreement offers numerous benefits, it’s important to be aware of the following:

  • Credit File Impact: Your credit file rating will be affected for up to five years, which may limit your ability to incur further debt.  Where you complete the agreement (ends under S185N of the Bankruptcy Act), the agreement remains on the credit file & NPII until the longer of 5 years and 1 month from the day the agreement is made, or 1 month from the completion date.
  • Professional Licenses: Certain professional licenses may be impacted, so it’s essential to understand the implications for your career.
  • Compliance Requirements: If you don’t meet the terms of your Debt Agreement or make your payments in full and on time, the creditors are within their rights to seek termination of the agreement and recommence collection proceedings, legal action, or enforce bankruptcy.
  • Exclusions: Not all debts can be included in a Debt Agreement. Secured debts (e.g., home loans and car loans) and some state debts (e.g., fines) cannot be included.
  • Joint Debts: A Debt Agreement does not release another person from a joint debt.

The debt agreement process

Submit Application
1 - 2 days

Complete our online application process to provide the details of your financial circumstances. Your personal Customer Success Specialist will discuss the Debt Agreement with you and any alternative options available.

Provide information on your financial circumstances via online application

Discuss options and engage Revive Financial

Implement Solution
1-2 Weeks (+ 35 day Creditor voting period)

Your personal customer success specialist will finalise your proposal and lodge your Debt Agreement Proposal.

Review of your application details by our internal Compliance Team 

Finalised proposal signed and submitted to AFSA for processing and voting by your creditors

Take Back Control
3 - 5 years

Enjoy the financial relief provided by your Debt Agreement to clear your unmanageable debts and start building a positive financial future today. 

Your finalised proposal is accepted by your creditors 

We collect your affordable repayments and distribute to your creditors

Kristy & John

Part IX (9) Debt Agreement

$70,000 in Credit Card Debt

Married – 3 Children

Mental Health Struggles

Find out how we helped Kristy & John

Our Solution

Helping Kristy & John With Their Debt

Unsure what to do or where to turn, Kristy gave us a call. After a free initial consultation, we determined that a Part IX (9) Debt Agreement was their best option. We assessed their income and expenses and found that they could clear the debts in five years by repaying $550 a month.

We negotiated the terms with Kristy and John's creditors on their behalf in order to get the plan agreed. This involved explaining to creditors in detail what they could afford and the timeframe for repayment.

Positive Outcome

Kristy & John Find Stability

55% Debt Reduction

Their creditors agreed to the arrangement had to pay back only 45% of their total debt.

Stress-Free Recovery

Without the financial stress, they were able to focus on their return to health.

The Impossible Was Possible

They could repay their debts at an affordable amount, reducing the pressure.

Why Choose Revive Financial?

Navigating a Debt Agreement can be complex, but you don’t have to do it alone. Revive Financial’s specialised team can guide you through the process, ensuring you find the most manageable solution for your unique situation. Our experts will work with you to craft an agreement that alleviates your financial pressure and sets you on the path to a brighter financial future.

You're In Safe Hands

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Judgement-Free

At Revive Financial, we care about the stress and impact being in debt has on your wellbeing. We want to help you take back control with no judgement, just a helping hand.

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Financial Professionals

Revive Financial is proudly Australian owned and lead by a team of Chartered Accountants. Our qualified team have been helping Australians become debt free since 2005.

Tailored Solutions

Industry Leaders

Our dedicated team have been trusted by over 10,000 Australians to help take back control of their financial futures. It's what we do best so you can rest assured.

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Download Our eBook

Learn how to turn negative to positive today with a FREE ebook produced by our team of finance professionals, just for you. This helpful guide outlays all of the debt management options available and will assist you in understanding how you can take back control of your financial future.

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Take the First Step Today

Don’t let debt control your life. With a Debt Agreement, you can take proactive steps towards financial freedom. Contact Revive Financial today to learn how we can help you create a sustainable debt management solution and take back control of your financial future.

Frequently Asked Questions

How do I qualify for a Debt Agreement?

There are certain guidelines and thresholds you must meet to be eligible:

  • If you have been bankrupt or in a Debt Agreement before, you must have completed your Debt Agreement or term of bankruptcy at least 10 years ago.
  • Your income after tax must be less than $105,009.45 net per annum, per applicant.
  • The value of your unsecured assets (including equity in property) cannot exceed $280,025.20.
  • Your unsecured debts must be less than $140,012.60.

How long will my Debt Agreement last?

While the specific terms and conditions of each Debt Agreement is unique and particular to the individual and lenders involved, in general, the average Debt Agreement typically lasts between 3 years for non-home owners or 5 years for homeowners. However, you can complete it earlier if you make larger payments than the set amount.

How does a Debt Agreement affect my credit rating?

Your credit file rating will be affected, which may limit your ability to incur further debt.  Where you complete the agreement (ends under S185N of the Bankruptcy Act), the agreement remains on the credit file & NPII until the longer of 5 years and 1 month from the day the agreement is made, or 1 month from the completion date.

After the listing period, you will have a clean slate from which to rebuild your finances. We have access to a panel of lenders willing to lend money to individuals who have completed Debt Agreements at competitive rates.

How does a Debt Agreement affect my employment?

A Debt Agreement can impact your employment, especially if you hold a professional license or work in certain industries. Some employers may have policies regarding employees entering into Debt Agreements, and certain professional licenses may be affected. It's important to check with your employer or professional licensing body to understand any potential implications for your career.

What debts can be included in a Debt Agreement?

A Debt Agreement can include 'provable debts', which are debts that entitle the creditor to participate in dividends paid in a bankrupt estate. Typically, these include unsecured debts such as credit card debt, personal loans, medical bills, and other similar obligations. However, secured debts (like home loans or car loans) and certain state debts (such as fines) cannot be included.

Can I include joint debts in a Debt Agreement?

Yes.

While you can include joint debts in your Debt Agreement, it's important to note that this agreement does not release the other person from their responsibility for the debt. They will still be liable for their portion of the joint debt.

Do all creditors have to agree to the Debt Agreement Proposal?

No.

Not all creditors need to agree to the proposal. As long as creditors representing a majority in value (50.01% of the total dollar amount) of those who vote and are entitled to vote accept the proposal, it becomes legally binding on all creditors.

What happens if I miss a payment?

If you fail to meet the terms of your Debt Agreement or make payments in full and on time, creditors can seek to terminate the agreement. They may then recommence collection proceedings, take legal action, or pursue bankruptcy.

How does Revive Financial help with a Debt Agreement?

Revive Financial will administer all of the payments to your creditors on your behalf, ensuring a smooth and stress-free process. Our specialized team will guide you through each step, helping you create a manageable debt management plan tailored to your situation.

What are the costs involved in a Debt Agreement?

There are costs associated with setting up and managing a Debt Agreement, including administration fees and trustee fees. These costs will be outlined in your agreement proposal, so you will know exactly what to expect.

How do I get started with a Debt Agreement?

To get started, contact Revive Financial for a consultation. Our team will assess your financial situation, explain your options, and help you determine if a Debt Agreement is the right solution for you. We'll guide you through the entire process, from proposal preparation to finalizing the agreement.

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