Part 9 Debt Agreement

Discover how our Part 9 Debt Agreement service can help you manage debt effectively while avoiding bankruptcy. Get expert guidance today!

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A Part 9 Debt Agreement, officially known as a Part IX Debt Agreement, is a legally binding arrangement between a debtor and their creditors. It allows individuals facing financial hardship to propose a reduced payment plan to their creditors, which, once accepted, stops further interests and penalties.

Part 9 Debt Agreement offers a structured approach to managing debts, providing relief while avoiding the harsh consequences of bankruptcy. Our team of professionals is here to walk you through the process and help you regain control of your finances.

Benefits of Debt Agreement

  • Negotiate lower and more manageable debt repayments.
  • No further interest or charges on your debts.
  • Stops creditors from taking legal action against you.
  • It is less severe than declaring full bankruptcy.
  • Make one consolidated payment instead of multiple ones.
  • It helps stabilize your finances by simplifying payments.
  • Opportunity to rebuild your credit after completing the agreement.
  • Reduces anxiety with a clear plan to handle debt.
  • It is more private than bankruptcy, not a public record.
  • Gain knowledge on managing finances better through the process.

Eligibility for Part 9 Debt Agreement 

To be eligible for this debt agreement in Australia, individuals must meet specific criteria. These criteria are designed to ensure that this debt solution is appropriate for the debtor’s financial situation. Here are the main eligibility requirements:


You must be an Australian resident or have a residential or business connection to Australia.

Insolvency Status

It would help if you were unable to pay your debts when they are due. 

Debt, Income, and Asset Thresholds

  • Debts: Your unsecured debts must have a limit of $123,470.80 at most.
  • Assets: The total value of your assets must not exceed the same limit as your unsecured debts of $123,470.80.
  • Income: Your after-tax income for the next 12 months must be at most $92,603.10. 

Previous Bankruptcy or Debt Agreements

It would help if you had not been bankrupt, nor should you have entered into another Part 9 Debt Agreement or a Personal Insolvency Agreement in the last ten years. Previous engagements with these insolvency solutions can affect your eligibility.

AFSA (Australian Financial Security Authority) Fees

  • You must be able to pay the required application fee to the AFSA, which administers debt agreements.

Complete Process of Agreement


Eligibility Check

Verify if you meet the criteria based on your debts, income, assets, and residential status


Please speak with our registered debt agreement administrator at Fix Bad Credit to get professional advice and guidance.

Proposal Development

Together with your administrator, draft a proposal that details your payment plan based on what you can realistically afford.

Proposal Development

The administrator submits your proposal to the Australian Financial Security Authority (AFSA), which reviews it for compliance.

Creditor Voting

AFSA circulates the proposal to your creditors, who have 35 days to vote on whether to accept it


If creditors approve the proposal, the agreement takes effect. You start making payments as agreed in the proposal.

Payment Administration

Your administrator collects these payments and distributes them to your creditors, managing all correspondence and financial transactions


After you make all the payments, your debts included under the agreement are considered settled, and you are formally released from them.

How Can A Part 9 Debt Agreement Help?

It can offer significant relief for individuals struggling with unmanageable debt. Here are some key ways in which this agreement can help

Reduced Debt Payments

It allows you to propose a realistic and manageable payment amount based on your financial situation. It often means paying back less than the total debt owed.

Freeze on Interest and Charges

Once the agreement is in place, additional interest and charges on your debts are frozen. It prevents your debt from growing and helps make the repayment process more manageable

Protection from Creditors

During the term of the debt agreement, creditors cannot take further recovery actions against you. It includes legal actions to recover the debt, which can provide significant mental and emotional relief.

Avoid Full Bankruptcy

Entering a Part 9 Debt Agreement allows you to avoid full bankruptcy, which can have more severe consequences for your financial reputation and capacity to borrow in the future.

Simplified Debt Management

Instead of juggling multiple repayments to various creditors, you make one regular payment to your debt agreement administrator, who distributes it among your creditors. This simplification can make managing your finances easier.

Credit Rating Impact

While a Part 9 Debt Agreement does impact your credit rating, it might be less severe than the impact of going into full bankruptcy. Moreover, it demonstrates an effort to manage debts responsibly.

Fixed Agreement Term

The agreement has a fixed term, usually between three to five years. After completing the payments under the agreement, you are released from these debts, allowing you to start afresh financially.

Legal Framework

The agreement is a legal process that ensures all parties are bound to adhere to the agreed terms. This legal certainty can provide peace of mind during the repayment period.

Financial Guidance

Working with a debt agreement administrator provides you with professional financial guidance. This support can help you manage your current debts and avoid future financial pitfalls.

Why Choose Our Services?

Expertise: Years of experience in managing debt solutions.

Personalization: Tailored debt management plans.

Support: Ongoing guidance throughout the debt agreement process.

Results: High acceptance rate of proposals by creditors.

Contact Us

For more information or to schedule a consultation, don’t hesitate to contact us. Our team is here to help you assess your situation and find the best way to get out of debt.