Debt Agreements

Debt Busters are a registered Debt Agreement Administrator. This means we can prepare and lodge a debt agreement proposal on your behalf. We deal with all your unsecured creditors, so you don’t have to.

Debt Agreements allow you to make regular repayments based on what you can afford – not what is owed.


  • What is a debt agreement?

    • A debt agreement is a legally binding agreement between you and your creditors.
    • It provides the opportunity to repay one fixed weekly, fortnightly or monthly amount based on what you can afford – not what is owed.
    • Once your debt agreement is accepted, your creditors agree to freeze the outstanding balance of your included debts and stop any further interest, charges and fees.
    • It is a formal payment arrangement where creditors agree to clear the remaining balance of the listed debt at the end of the debt agreement – meaning you will save considerably when compared to paying the debts in full over the same period of time.

  • Am I Eligible For A Debt Agreement In Australia?

    To be eligible for a debt agreement, you must:

    • Show evidence of late payments or credit card/loan arrears.
    • Not have been bankrupt or entered into a debt agreement in the last 10 years.
    • Have unsecured debts, income and assets within the allowable limits.

  • Is a Debt Agreement Right for Me?

    • A debt agreement is becoming an increasingly popular option in Australia as an effective debt repayment strategy, however it does utilise Part IX of the Bankruptcy Act.
    • It’s important to note that this may affect your chances of being approved for credit over the next 5 years (or until the Part 9 debt agreement is completed: whichever is longer). Your name will be listed on the National Personal Insolvency Index (NPII) and your credit file will be noted that you proposed a debt agreement.
    • In the event that your debt agreement is terminated, all debts will be fully reinstated and creditors will be allowed to resume their collection process and backdate any interest so it’s important to complete your debt agreement as much as possible.

  • The Debt Agreement Process

    1. Information Gathering Stage
      When preparing a debt agreement, we need to present your financial position in writing to your creditors. We are required to review your assets, debts, income and expenses to show creditors that the agreed repayment amount is affordable.
    2. Debt Agreement Proposal
      When we have all the information required, we will prepare the documents for you to read thoroughly and sign. The documents are then submitted to the Australian Financial Security Australia (AFSA) as soon as we receive your documents back.
    3. Debt Agreement Processing and Voting
      AFSA will assess your eligibility and will forward a copy of the proposal to your creditors for their approval. Your creditors will have a 5-week voting period where they decide whether to accept the terms of your agreement. During this time, your debts are frozen and all collection activity must stop. You must continue to pay your secured debts as they are not included in your debt agreement.
    4. Debt Agreement Acceptance
      If the majority of creditors accept your debt agreement proposal, then your payment terms take effect immediately. Both you and your creditors will need to abide by the new terms of your payment arrangement, which is typically set over 3-5 years. Your only requirement is to maintain your minimum payments throughout the life of the debt agreement.

  • Which Debts Can I Include in My Debt Agreement?

    • Only provable unsecured debts can be included in your Debt Agreement such as:
      • Credit cards and store cards
      • Unsecured personal loans
      • Payday loans
      • Overdrawn bank accounts
      • Store cards
      • Trade accounts
      • Medical bills
      • School fees
      • Utility accounts
      • Rental arrears
      • Tax debts
    • Secured debts, such as car loans and home loans, are not included in your debt agreement and these must be paid separately.
    • Non-provable debts like fines and debts incurred by fraud or after the debt agreement are not included in your debt agreement.

  • What if my Debt Agreement Proposal is not accepted?

    It is very rare that a Debt Agreement Proposal prepared by Debt Busters is not accepted on the first occasion and even rarer still on the second. If your creditors do not accept your Debt Agreement Proposal, we will find out the reasons and then resubmit an amended proposal with more suitable terms for your creditors’ acceptance.

    We adhere to policies and procedures that we believe are in your best interests. We believe that you shouldn’t be further disadvantaged if we are not able to secure a Debt Agreement for you, especially since you are seeking debt relief. For this reason, we offer a full refund less any costs paid to external organisations in setting up your Debt Agreement Proposal if it was submitted and not accepted by creditors but passed our affordability and sustainability policy.

    Take control of your debt today. For more information about our debt agreement process, please get in touch with a member of our friendly team now.

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Debt Busters is an Australian owned business which was founded in 2005 - since then we have been able to help thousands regain financial control.

Debt Busters prides itself on providing a dedicated Client Service Manager to work closer with you and provide a higher level of customised service about your situation.