Informal Debt Agreement Services

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Facing financial difficulties can be stressful. An informal debt agreement is a flexible option for managing debts without formal bankruptcy or a Part IX Debt Agreement. Our services offer personalized support, helping you negotiate with creditors for a sustainable payment plan.


An informal debt agreement is a negotiation between you and creditors to modify repayment terms. It’s not recorded on any public register, offering privacy and less impact on your credit rating than formal debt agreements.

Benefits of Informal Debt Agreement

It offers several benefits for individuals facing financial difficulties providing a flexible and less
formal approach to managing debt. Here are the key advantages:


These agreements are tailored to your financial situation, allowing customized repayment terms that fit your income and expenditure.

No Impact on Credit Score

Unlike formal debt agreements or bankruptcy, informal debt agreements are not recorded on your public credit file. It means they have a lesser impact on your credit rating, preserving your ability to obtain credit in the future.

Avoidance of Bankruptcy

By opting for an informal agreement, you can avoid the severe consequences of bankruptcy, including restrictions on employment and the loss of assets

Direct Negotiations

You can negotiate directly with creditors or through a debt management service, allowing for more personal and favourable terms.


Since these agreements are not registered with any public body, your financial situation remains private, unlike formal debt solutions that are publicly recorded.

No Legal Proceedings

Informal agreements do not involve court processes or legal proceedings, making them simpler and less stressful than formal insolvency options.

Potential for Reduced Debt

 In some cases, creditors may agree to reduce the overall debt amount or freeze interest and charges as part of the negotiation process.

Control Over Assets

Unlike bankruptcy, where assets might be sold off to pay debts,informal debt agreements often allow you to maitain control over your assets.

Our Services

Debt Assessment:

  • Initial Consultation: Understand your financial situation.
  • Debt Analysis: Review debts, income, and expenses.

Negotiation with Creditors


    • Custom Proposals: Tailored repayment plans based on your capacity.
    • Negotiation: We represent you in discussions with creditors.

Agreement Implementation

  • Setting Up Payments: Assistance with setting up the new repayment plan.
  • Monitoring: Regular check-ins to ensure the plan remains suitable.

Continuous Support

  • Financial Advice: Tips on budgeting and financial management.
  • Adjustments: Help with renegotiating terms if your situation changes.


How Informal Agreement Can Help You? An Example

An IT worker, John was deep in debt with $50,000 from medical bills, a loan, and credit cards. Losing his job made things worse, even after he found new work. He couldn’t handle the payments, was stressed, and scared of ruining his credit score.

How We Helped

Understanding John’s Money:

 We looked at how much he earns and spends to find out what he could afford   to pay.

Talking to Creditors:

 We spoke with the people he owed money to, suggesting a plan to reduce his   monthly pay.

  • Simplifying Payments:

    We combined all his debts into one easier monthly payment.


The Results

  • Less Monthly Payment:

     John’s payments were cut by 40%, giving him some breathing room.

  • Lower Interest Rates:

    We reduced his interest rates, so his debt grew slower.

  • Stress Gone:

    With a clear plan, John felt less worried.

  • No Bankruptcy:

    This plan prevented John from declaring bankruptcy, saving his credit score      and his stuff.

  • Back on Track:

    In a year, John managed his debt well without falling behind on anything      else.


Financial Evaluation

Gather Information: We start by collecting detailed information about your income, debts, monthly expenses, and assets to understand your financial situation fully.

Expert Analysis: Our team analyzes your finances to determine the most realistic and sustainable repayment plan for you.

Professional Advice

Consultation: You’ll receive a one-on-one consultation with our debt management experts to discuss your options and the best course of action tailored to your needs.

Plan Development: We develop a strategic plan proposing new, manageable payment terms to your creditors.


Engagement: Our experienced negotiators engage with your creditors on your behalf to present the proposed repayment plan.

Achieve Agreement: We aim to secure an agreement that reduces your monthly payments, lowers interest rates, or even reduces the total debt owed, depending on your situation.


Agreement Implementation

Payment Setup: We assist in setting up the new, simplified payment structure, ensuring it aligns with your financial capability.


Our team continuously monitors your agreement, making adjustments as needed to accommodate any changes in your financial situation.

Financial Freedom

Complete Payments: We guide you through completing your payment plan step by step.

Review and Plan: After clearing your debts, we offer a final review of your financial situation and provide advice for maintaining financial health and avoiding future debt.

Informal Agreement Vs Part IX Debt Agreement

FeatureInformal ArrangementsPart IX Debt Agreements
Legal StatusNot legally binding. Based on voluntary agreements between debtor and creditorsLegally binding under the Bankruptcy Act 1966. Formal agreement between debtor and creditors
Impact on Credit ScoreIt may have a less severe impact as it is not recorded on your credit fileRecorded on your credit report for at least five years and appears on the National Personal Insolvency Index (NPII) permanently
FlexibilityHighly flexibleFixed terms that are less flexible
Debt AmountNo minimum or maximum debt requirementMust have unsecured debts of less than a certain threshold
Asset RetentionDebtors can usually retain their assets unless negotiated with creditorsDebtors may have to surrender some assets to trustees
CostsIt may involve fees if using a debt management serviceInvolves set up and administration fees ,which can be substantial
Public RecordNo public recordDetails are recorded on the NPII, which is a public record
DurationDuration is flexible and based on agreement termsIt lasts for 3 to 5 years
EligibilityAnyone can propose an informal arrangement to their creditorsMust meet specific criteria
OutcomeDesigned to pay off debt within negotiated termsLegally discharges the debtor from certain unsecured debts upon completion

Why Choose Us?

  • Expertise: Years of experience in debt negotiation.
  • Personalized Approach: Solutions designed for your specific needs.
  • Success Rate: Proven track record of favourable agreements.

Testimonials: Hear from individuals who regained control of their finances through our informal debt agreement services.

financial agenct discussing procedure of part 10 agreement with clients

Questions & Answers

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Can all types of debt be included in an Informal Debt Agreement?

Most unsecured debts, like credit cards and personal loans, can be included. Secured debts, such as mortgages or car loans, usually cannot be included because they are tied to specific assets

What happens if my financial situation changes?

One of the benefits of an Informal Debt Agreement is its flexibility. If your financial situation changes, you can renegotiate the terms with your creditors to better fit your new circumstances.


Is an Informal Debt Agreement right for me?

It depends on your financial situation, debt, and ability to repay it under modified terms. It’s often best suited for those who can afford to make some repayments but need a bit more flexibility.

What happens if I can't meet the terms of the Informal Debt Agreement?

Since the agreement is not legally binding, creditors might pursue other debt recovery options if they fail to meet the agreed terms. 


Contact Us

Ready to take the first step towards financial stability? Contact us for a confidential consultation. Together, we'll work towards a solution that lets you manage your debts effectively. Together, we'll work towards a solution that lets you manage your debts effectively.