A debt agreement can be a flexible way to come to an arrangement to settle debts without becoming bankrupt.


How debt agreements work

  • You negotiate to pay a percentage of your combined debt that you can afford over a period of time. (Normally 3 years).
  • You make repayments to your debt agreement administrator, rather than individual payments to your creditors.
  • After you complete the payments, the agreement ends, your creditors can’t recover any amount  you still owe.
  • You need to talk to a registered debt agreement administrator (we are registered), if you want to enter into a debt agreement, they will submit a proposal on your behalf.

A debt agreement may be a suitable alternative to bankruptcy

  • It can benefit your creditors as they may receive more money than if you were to become bankrupt.
  • It can provide relief if you’re unable to manage your debts, but there are some consequences which may affect you.
  • To be eligible your income after tax must be less than $105,009.00 ($2,019 weekly). Your unsecured debts must be less than $140,012 and your assets (Equity Value/Divisible) property must be less than $280,025.

Debt agreements are not:

  • consolidation loans or agreements to borrow money
  • able to release you from all types of debts—some debts you will still need to pay.

Contact us and we will go through what you can or can’t do with a Debt Agreement.

Don’t worry about what you have to say. You don’t have to explain why you need help or what happened.

Our job is simple – To help you, to make you feel welcome and to give you real answers.

What Happens

You will make your new regular payment that covers all of your debts to an Administrator. The Administrator will deal with all of your creditors.

All interest and charges will be frozen. You will also normally pay back less than you owe to clear your debts. Debt Agreements go for 3 or 5 years. You are only allowed to have a payment amount you can afford. At the end of the 3 or 5 years any remaining debt is extinguished and you should now be debt free.

One Payment

All of your qualifying debts are combined into one easy payment.

Government Legislated

Click on Goverment Legislated above to go to AFSA (Australian Financial Security Authority) what is explanation.


Once it is approved that is the new deal for your debt. No one can ask you for more if you get a pay rise, an inheritance or win lotto.

No more interest

Imagine if you didn’t have to pay interest. Your debt would go down by the amount you pay. This is what happens with a Debt Agreement.

A plan with an end

Your Debt Agreement will be affordable and a way that you can see your debt being paid off for good.

Contact an expert

Give us a call or book a friendly chat for an evening or Saturday and you will get to speak to an experienced practitioner. Not a sales consultant but somebody who actually prepares the proposals and negotiates with your creditors.

Call the licensed Practitioner, Keith Dorahy, direct on 0421 866 422.