Debt Agreement

Debt Solutions

A Debt Agreement is a legally binding repayment plan between you and your creditors and will be based on what you can afford to repay. A Debt Agreement may help you avoid formal bankruptcy.

It is a streamlined process to consolidate unaffordable debts for insolvent debtors with the protection of the Bankruptcy Act, if your:

Unsecured debts are < $88 379.20; and
Equity in assets are < $88 379.20; and
After tax annual income is < $66 284.4 or approximately < $88,379 (before tax for Australian residents)

The benefits of a DA include:

Affordable regular payments tailored to your budget;
Unpaid debt will be legally written off (including interest);
Binds all creditors into the agreement
Fixed payment period usually from 3 to 5 years
We deal with all creditor calls and correspondence;
Avoids the stigma of formal bankruptcy – allowing you to enjoy the following benefits:
- Freedom to travel overseas
- Assets will be protected

A DA is ideal for insolvent debtors who have a poor credit record and cannot obtain a consolidation loan. A DA is a formal legally binding agreement with your creditors and is an act of bankruptcy under the Bankruptcy Act. As such it should not be confused as a consolidation loan.

To read our Frequently Asked Questions about a DA click here.