Debt Agreement


1What is a Debt Agreement?

It is a legally binding financial arrangement with all of your unsecured creditors. Once completed, you will be released from your unsecured debts. We will manage your debt repayment schedule with your creditors.

Benefits of an Accepted Debt Agreement are:

  1. All interest will be paused for the duration.
  2. You make one payment for all unsecured debts listed in your Debt Agreement
  3. Action by your creditors to collect the debt will cease
  4. Legal actions, wage garnishees and any other form of debt collection will cease
  5. You can schedule debt repayment weekly, fortnightly or monthly based on your affordability
2What fees do I pay?

Fees change depending on the product and the level of debt. We guarantee that you will pay less, including all fees and charges with ADAIS than you will under your current situation. It’s free to have a chat with our Debt Consultants and they will calculate what your total payments will be including all fees and charges.

There are no hidden costs in a Debt Agreement, however a realisation charge will be paid to the Australian Government.

3Who is eligible?

A Debt Agreement can be proposed by a debtor who has:

  1. Not been bankrupt, utilised a Debt Agreement or given an authority under Part X of the Bankruptcy Act in the last 10 years.
  2. After tax income for the year can’t exceed $86,800.35*
  3. Unsecured debts of less than $115,773.80*
  4. Property not exempt under bankruptcy valued at less than $115,773.80*

*Figures are current as at 20/03/2019’

4What is the process?
  1. Assess whether a debtor is deemed eligible.
  2. The Debt Administrator will work out budget and prepare a repayment plan for the debtor.
  3. A proposal is submitted to AFSA(Australian Financial Security Authority) by ADAIS.
  4. Your creditors will vote on the proposal. The proposal becomes a Debt Agreement once more than 50% of the original debt amount is approved.
  5. Once a Debt Agreement is established, payments are made into an established Trust Account based on the agreed repayment schedule.

Australian Financial Security Authority


1What is AFSA?

AFSA stands for Australian Financial Security Authority. It is a government department responsible for reviewing your proposal to creditors and the registration and facilitation of Debt Agreements.

2How long does it take?

Once AFSA has accepted the Debt Agreement Proposal for processing, your creditors will have up to 35 days to vote on the proposal. During this period, you are under no obligation to pay your unsecured creditors.

3Is a Debt Arrangement (Part IX) same as Bankruptcy?

Debt Agreement is an alternative to bankruptcy. It does not impose the same restrictions as bankruptcy and creditors may allow you to retain your assets or continue to operate a business via a company. However, there are still restrictions that apply to you, including – You must disclose your debt agreement status when applying for or buying goods and services on credit or via cheque for amounts over $5,778.00. If you run a business your full name must be listed as part of your trading name.

4What is Insolvent?

A person is insolvent when he/she/they cannot pay all their debts when they fall due.

5What if my debt agreement is rejected by my creditors?

ADAIS will notify you and discuss a second, alternative debt arrangement which is to be authorised by you. No additional set up fees will be charged in this instance, however AFSA will charge another $200 lodgement fee.


Your credit file is held by private credit reporting agencies such as Veda Advantage, Equifax and Dun & Bradstreet, who receive an electronic notification of your finalisation from AFSA.  The Debt Agreement information may impact on your ability to obtain credit.  Veda Advantage, Equifax and Dun and Bradstreet retention period for Debt Agreement is whichever of the following periods ends later:

  1. the period of 5 years that starts on the day on which the agreement is made;
  2. the period that ends on the day on which the agreement ends.

For more information, please review AFSA website or Click Here.