If bankruptcy is on your mind then you should first consider a Part IX Debt Agreement.
Are you struggling with unmanageable debt? A Part 9 (otherwise known as “Part IX”) Debt Agreement could be your lifeline. It’s a formal way to consolidate your debts and repay an agreed-upon amount, offering an alternative to bankruptcy.
At Just Budget, we help you navigate debt challenges. We offer budgeting tools and can negotiate informal repayment plans with your creditors.
While we don’t administer formal Part IX Debt Agreements ourselves, we can connect you with our affiliate, Debt Fix Pty Ltd (Australian Credit Licence 393436), who specialise in this area if you’d like to explore that option.
We’re here to help you find the best debt management solution for your needs.
A Part IX Agreement provides a structured path to becoming debt-free.
With over 30 years of financial expertise, Just Budget has the tools to help you become debt-free. Find out how Just Budget’s debt solutions work:
This helps us understand what you can afford so you can get the best debt agreement solution possible.
Debt Fix will look after your case from this point forward. They'll arrange new terms based on what you can afford and you will receive support from them moving forward.
With the new Part 9 Debt Agreement underway, you'll make easy, reduced payments to Debt Fix until you're debt-free!
Only unsecured debts are included in a Part 9 Debt Agreement. This means debts like credit cards, personal loans, and medical bills.
A Part 9 Debt Agreement covers a range of unsecured debts, including but not limited to:
Secured debts, such as mortgages or car loans where the debt is tied to an asset, are not included in the agreement. You will continue to make your regular payments on these secured debts.
A Debt Agreement remains on your credit file for up to five years from the date it starts. This is a public record that informs potential lenders about your past financial difficulties.
While it may impact your ability to obtain credit in the future, it’s important to remember that lenders assess applications on a case-by-case basis, considering various factors.
While a Debt Agreement may make it more challenging to obtain credit, it doesn’t necessarily prevent you from borrowing altogether.
Some lenders specialise in providing loans to individuals with less-than-perfect credit histories. You may not be required to disclose your Debt Agreement to all lenders, but it’s essential to check the specific requirements of each lender.
Be sure to carefully consider the terms and conditions of any loan offer before accepting it. It’s important to avoid taking on additional debt that you may struggle to repay.
Because a DA is a legal agreement – once confirmed, you are protected by law and your creditors cannot demand a greater debt repayment amount than what was agreed upon.
However, this also means that it is your legal obligation to honour the agreement and responsibly repay the new amount that you do owe.
If your Debt Agreement is terminated, your debts will be reinstated and you will no longer have protection from your creditors under the act. Interest and charges will also be reinstated as if the agreement never happened.
Not only will this mean you will have to repay the original amount as before, but this record will also remain on your credit file for 5 years.
If your circumstances have drastically changed since entering into the agreement and you can no longer afford the set payments, then you can seek further help, and there may be another solution to help you avoid the path of bankruptcy.
It is important to seek help if you are ever struggling with debt, no matter how big or small. If debt starts to build up then it can very quickly spiral out of control.
If you need further clarification on debt agreements and how they may affect your circumstances, contact AFSA Australian Financial Security Authority which is the Government agency that is responsible for overseeing the operation of the Debt Agreement Scheme.
Yes, there are fees involved in setting up and administering a Part 9 Debt Agreement. These fees cover necessary costs, including government charges and administrator fees for managing the agreement.
If ALL of the below statements are true then it is likely that you could qualify for a formal debt agreement.
AFSA has a free online insolvency eligibility tool that you can utilise to be sure if you qualify.
While both formal debt agreements and informal debt arrangements deliver a similar outcome, Informal Debt Arrangements do not fall under the Bankruptcy Act where Part IX Agreements do.
There are more consequences from a Part IX Agreement than an Informal Debt Arrangement which is why the Informal Debt Arrangement should always be considered first.
Formal debt agreements carry the following consequences:
Unlike formal Part IX debt agreements, informal debt arrangements offer a more flexible and less restrictive solution for managing debt. Here’s how informal agreements work in contrast:
While Part IX agreements are suitable in certain situations, an informal arrangement may be a better fit if you’re seeking a personalised, discreet, and less invasive approach to managing your debts.
Below is a list of possible restrictions on certain trades or professions for those considering Part 9 Debt Agreements.
This is not the full list of all trades and professions but offers some insight into the decision to sign a formal Part 9 Debt Agreement:
Accountants, Builder’s License, Company Director/Manager, Business in currency, Electrical License, Escort Agencies, Finance Broker and Security Dealers, Gaming Room employees, Gas Fitter license, Investigator license, Justice of the Peace, Member of parliament, Police, Plumber license, Real estate license, Pawnbrokers, Secondhand vehicle dealer license, Security license, Solicitors, Travel Agent License.
(Source: AFSA)
It is really important that you get the right information and advice before entering into Part 9 Debt Agreements, to ensure a Part 9 Debt Agreement is the right choice for you. At Just Budget we encourage our clients to speak with a financial counsellor.
If you’ve been served with a bankruptcy notice, we recommend that you get free legal advice immediately.
Our goal is to ensure you make an informed choice and that it is in your best interests.
If you qualify, your Formal Part 9 Debt Agreement could be finalised within 24 hours, and you could start enjoying the benefits immediately.
While Just Budget do not administer Part IX Debt Agreements ourselves, we are still here to support you in other ways, such as with our budgeting tools, informal debt arrangements and more.
Our affiliate, Debt Fix Pty Ltd (Australian Credit Licence 393436) do provide Part IX Debt Agreements if you are interested in proceeding with this solution.
Just Budget Pty Ltd is a debt management specialist. Our primary goal is to help Aussies reduce & organise their debts.
With budgeting tools, debt reduction and debt mediation, we offer the full package to help you take control of your finances.
Get started today with a clear & easy debt-free pathway and wave goodbye to financial stress.
