How does a DA Work?

New Agreement

A DA is a new Agreement for all of your unsecured debts. You only have to make one regular payment that covers all of your previous payments.

It is not a new loan. It gets approved by your creditors agreeing. They don’t all have to agree. As long as the majority in terms of what you owe agree it will become the new agreement for all of your debts.

DA’s exist under the bankruptcy act as a way for people to deal with debt without going bankrupt.

The law is quite clear about this. If you are in a DA you are NOT bankrupt.

Secured debt does not form part of a DA. This means if you have a car loan or mortgage and you want to keep the asset you keep making normal payments.

Who is involved?

There are the Creditors, there is the Administrator and there is You.

The Administrator (that can be us) prepares the proposal for the Creditors to vote on.

The Administrator takes over dealing with the Creditors. You are in between the Administrator and the Creditors.

Once it is approved the Creditors are not allowed to contact you and all interest and charges are Frozen.

You will only pay one regular payment, based on what you can afford. Most DA’s only go for 3 or 5 years. Once you finish paying your approved DA any remaining debt is extinguished and you are debt free.

To get a DA and get out of debt you will have to accept that your credit score will be affected. However, this will repair itself so that after 5 years there will be no trace, not even on the Government file that you did the DA.

What will be Involved

We as your Administrator will prepare the DA proposal. The proposal shows all of your debts, your income and your budget. It will show that you can’t keep going the way things are and that your proposal is a fair compromise so that your creditors get something as opposed to if you go bankrupt and they may get nothing.

You may have to provide supporting documents like payslips, statements etc

All creditors have to be included in the DA.

The moment you engage us to work for you we will take over dealing with your creditors.

Fee’s are based on what you owe and include admin and a Government realisation fee. It is impossible to quote fee’s without knowing the amount of debt involved. From your perspective, all fee’s are included in your regular payment which will be less than you are paying now.



Click through to Pro’s, Con’s and frequent questions.