Restructuring, Turnaround and Insolvency Specialists

Part IX – Debt Agreements

Debt Agreements are made between a debtor and his or her creditors to satisfy their debt partially or in full. The debtor is released from most of his or her debts when all payments and obligations promised in the Debt Agreement are finalised.

It is “an act of bankruptcy” to provide the Australian Financial Security Authority (AFSA) with a written proposal for a Debt Agreement. Therefore, you should consult with us before you enter into a Debt Agreement.

You can only make a Debt Agreement proposal if you:

  • Are insolvent.
  • Have not been bankrupt, used the Debt Agreement system or signed an authority under Part X (ten) of the Bankruptcy Act (a Personal Insolvency Agreement) in the past ten years.
  • Have unsecured debts, assets and an annual after-tax income of less than the indexed amounts.
  • Pay the Debt Agreement lodgement fee specified in fees and charges.

For further details, refer to the Debt Agreement Process on the AFSA website.


Liability limited by a scheme approved under Professional Standards Legislation