Debt Relief Plan Information

A Debt Relief Plan (DRP) is a debt relief solution for people who are struggling to pay their debts as well as living costs. It’s an alternative to Bankruptcy or a Part IX Debt Agreement developed by Administrators, Creditors and other debt industry stakeholders.

A DRP is suitable for people who are struggling to pay their debts as well as living costs. A Debt Relief Plan is suitable for people who have multiple creditors but prefer not to go down a formal route, such as Bankruptcy or a Part IX Debt Agreement. It’s for people who can’t get a loan and have exhausted all other options to deal with unmanageable debt.

Participating creditors will agree to freeze interest and debt collection and you will pay an affordable fixed amount over a set period of time (usually 5 years). Once you have met your obligations set out in the plan, you will be released from any liability owed to participating creditors.

No. Whilst there are many creditors participating in the scheme, not all creditors have subscribed yet.

You will continue to pay non-participating creditors per their terms and conditions. We will work with you to ensure there is an adequate allowance in your budget for this and we will still attempt to negotiate & pay those creditors based on what you can afford and not what the creditor demands of you.

Alternatively, you may choose to cancel the DRP altogether and explore other options which may or may not include Bankruptcy or a Formal Debt Agreement. 

If it’s the case that those non-participating creditors failed to give your application reasonable consideration, it may be the case that you have reasonable grounds for complaint with the AFCA (the Australian Financial Complaints Authority). If this is the case, we could help you raise a complaint if this is something you wish to explore.

The Just Budget Debt Relief Plan will not be recorded on your Credit History. Registered creditors will be required to confirm that they will not credit default you whilst party to an active DRP.

While the Debt Relief Plan will not have a direct impact on your credit score, it is worth noting that in some cases it is possible that creditors might place a late payment notice on your credit report while your DRP is still in the process of being set up. However, once our Statement Of Financial Position (SOFP) has been signed by both client and creditor, your credit rating will not be negatively impaired as a result of the DRP.

Assuming that all payments moving forward are paid on time, from experience, it is likely that your credit rating will improve in the long run as a result of being under a Debt Relief Plan.

Ultimately, our goal is to help clients to pay off their debts in a way that they can afford. By reducing repayments to an affordable amount, clients can feel less stressed and focus on making repayments on time.

Without our help, it is likely that clients will continue to default on repayments, damaging their credit score. We cannot guarantee, however, that creditors will not still default you even when on a debt relief plan. We are not responsible for the actions of creditors and in some rare instances, this can happen.

If this does happen, then continuing to make repayments to this creditor is still the best action to take. It shows that you didn’t abandon your responsibility to repay the credit and in the long run your credit score should still improve as a result.

Credit providers rely on their own criteria when deciding whether or not to approve credit. There is nothing legally stopping you from applying for finance, however we recommend you do not apply for more debt whilst party to a DRP because the intention of the Debt Relief Plan is to assist you to get out of debt. If you were to continue applying for loans whilst on the DRP, it would defeat the purpose.

If you stop paying the DRP, it can be cancelled and participating creditors will likely resume debt collection.

If you have a car under finance (secured) and you want to keep the car, you must continue your payments to this contract. Unlike Bankruptcy, you are allowed to keep all your possessions and there is no vesting of property.

Maybe. If your situation changes you might be able to change the terms of your DRP within the scope of set criteria. With our expertise, Just Budget can help you with this if need be.

Yes. If you are in a position to pay the DRP sooner, you could consider doing so. There is no financial penalty to paying the DRP sooner.

Yes. Unlike Bankruptcy, your ability to work will be unaffected. If there is a special condition or you need a special licence to work in your chosen industry, it is your responsibility to ensure settling your debts through a Debt Relief Plan will not impact your ability to work in your chosen industry. Being party to a DRP should not impact your ability to run or otherwise manage a business. 

No. If you don’t qualify for a Part IX Debt Agreement under the Bankruptcy Act because you earn too much, exceed the asset threshold or owe too much money to creditors, a Debt Relief Plan could be a great option to assist you regain control of your unmanageable debt and avoid the harsh consequences of Bankruptcy.

No. Unlike Bankruptcy, there are no restrictions placed on your ability to travel overseas and you are not required to surrender your passport.

Everyone’s situation is different, and this can only be answered on a case-by-case basis. Generally, making a DRP will not stop a creditor from taking legal action if that legal action or efforts to collect their unpaid debts started before the DRP.

No. By appointing Just Budget as your preferred authorised representative, Just Budget will act as a bridge between you and those creditors registered with the scheme and they will not lawfully be permitted to contact you.

Just Budget charges an application fee to cover our costs and allow us to provide you with the best service we can. No upfront payment is necessary before we start work for you and you can settle the fee over time at an affordable rate. All fees quoted include GST unless otherwise stated. Application fees are subject to Terms and Conditions detailed at

At Just Budget, we strive to deliver efficient and high-quality service, ensuring that every approach made by a member of the public is met in a prompt, courteous, helpful, open, and informative manner. We value our clients’ feedback about our performance, and we are committed to listening to their views.

However, we acknowledge that, like any organization, we may encounter instances when things do not go as planned. When this happens, we welcome complaints from our clients, as they give us an opportunity to learn from our mistakes and make things right. Our approach to handling complaints is to ensure they are dealt with quickly, fairly, and helpfully.

To make a complaint, you can contact us via writing, email, or telephone. Please provide a day-time telephone number where we may contact you, and if you are emailing, please let us know if a reply via email is acceptable. If not, kindly provide a full postal address. We encourage you to direct your complaint to the member of staff you have been dealing with to allow them to explain the actions taken and resolve the issue with you. Alternatively, you may ask the member of staff for the name of their line manager and direct your complaint to them.

In case you remain unsatisfied with the resolution, you can consider raising the matter with the appropriate agency, as described below. Our goal is to make it easy for you to make a complaint and for us to handle it promptly, politely, and efficiently, with an apology where necessary, an explanation of the situation, or information on any actions taken. We take complaints seriously and use them to improve our service.

If you have a complaint or concern about how we have handled your file, personal information or our compliance with the Privacy Act and Credit Reporting Code, you can contact us at 1300 795 775, or P.O Box 5489 Chullora NSW 2190.

We will acknowledge your complaint within Five to Seven days and provide you with a decision within 30 days.

If you are not satisfied with our response, you can contact the following organizations to make a complaint:

  • Australian Financial Complaints Authority (AFCA) at 1800 931 678,, or GPO Box 3, Melbourne, Victoria 3001.
  • Privacy Commissioner at or 1300 363 992.

DISCLAIMER: This information is not legal advice and should not be interpreted as such. If you require legal advice, legal advice should be sought. Just Budget has published information about ways to deal with unmanageable debt on its website located at You should also consider referring to the Governments Money Smart website which also details ways to deal with unmanageable debt and various other options which may be relevant. You should consider your own set of circumstances before deciding what to do.