Rejected Debt

We believe that everyone deserves a second chance at getting their debt under control. If your debt agreement has been rejected, you still have options. A debt agreement is known as Part IX or Part 9 of the Bankruptcy Act, and it’s an effective way to help manage and eliminate debt. If your debt agreement proposal is rejected, you’ll then need to assess your options. Debt Busters can help you resubmit your debt agreement to your creditors, giving you a second chance at financial freedom.

How It Works

A debt agreement is just that — a mutual agreement between you and your creditors. Occasionally, the repayment terms won’t be considered sufficient for the creditors, and your proposal will be rejected. In this case, you’ll need to resubmit a new proposal based on this feedback. Even if your debt agreement proposal was rejected in the past, it is still possible to submit a new proposal. If your information has changed, your creditors might reconsider the situation.

Advantages of a Debt Agreement

There are a number of benefits of a debt agreement that you won’t get with other types of debt solutions. Here are the most common:

  • More control – if your proposal is accepted, you’ll have a budgeted amount you need to pay each week, fortnight or month
  • Eliminate your debt – once you’ve finished your agreement term, you’ll finally be free from most, if not all, of your unsecured debt
  • Frozen Interest – when you enter a debt agreement, your interest on your debts is frozen.

In order to apply for another debt agreement, you will need to:

Be 18 or over
Be an Australian resident
Provide documentation
(ID, passport, driver’s license)
Share some information
about your financial situation

How Debt Busters Can Help

The administrator you choose can have a big impact on your debt agreement outcome. Debt Busters have extensive experience preparing debt agreement proposals. Creditors know and trust us, and this gives us the credibility needed to resubmit your previously rejected debt agreement proposal. We will act as your new Debt Agreement Administrator. This means Debt Busters will leverage our respected position to ask your creditors to reconsider your debt agreement proposal.

Contact us today or call a member of our team on 1300 368 332 for a confidential discussion regarding your financial situation and how we can help.