Repaying Debt After A Business Bust

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A business bust can be hard to recover from both financially and emotionally. And as a business owner, you may be liable for your company’s debts and losses.

If you’ve found yourself in a situation with business debt, it can feel like an impossible mountain to climb. But there are always options, and remember, just because your business failed doesn’t mean you are a failure!

Failure can be a great teacher if you let it, so see what lessons you can take from this business and apply them to another. You can and you will adapt to the next chapter of your life, but in the meantime, you’ll need to get down to business to take care of your debts.

There’s generally two preferred paths when it comes to repaying your business debts. Read on to see what they are and how they can help you move on. And remember – if at first you don’t succeed, try, try again!

How to repay your business debt

When dealing with something as complex as business debt, it’s best to hire a professional. While you can negotiate on your own behalf, often you’ll get a get a better deal through an expert debt management company like us, as we deal with creditors every day.

Here are the two main options on offer that will solve your business debt:

Debt Agreements

A debt agreement can be a great option for business owners who are looking to freeze the outstanding balance of their debts and stop any further interest, charges and fees from accruing.

What is a debt agreement?

A legally binding agreement between you and your creditors that allows you 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 will agree to freeze the outstanding balance of your included debts and stop any further interest, charges and fees. At the end of the debt agreement, your creditors will then clear the remaining balance of the listed debt.

Debt agreements do utilise Part IX of the Bankruptcy Act, so you’ll want to make sure to consult our consultants before proceeding with this option.


  • You need to be able to 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.

 Debt Negotiation

A debt negotiator will negotiate on your behalf with creditors, negotiating for a payment plan that’s right for your situation.

The negotiation will take place in three distinct stages:

  1. Your debt negotiator becomes your financial representative. They’ll let your creditors know that they are now your financial representative, meaning creditors will need to speak to your debt negotiator from now on regarding any demands for payment collection or action. This takes the heat off of you, while the negotiator puts together a settlement proposal for your creditors to review.
  2. They’ll negotiate your debt amount and payback terms with your creditors. Your negotiators will put together a customised payout plan that may be a single debt settlement or a weekly, fortnightly or monthly payment.
  3. You’ll begin paying your settlement. Once your creditors have accepted your new payment plan, you’ll begin making payments.

The bottom line

If you’re serious about repaying your business debts, it’s definitely possible! Debt negotiation and debt agreements are both viable options, but it’s important to get a professional on your side to help you negotiate with creditors and get an arrangement that’s fair and manageable for you.

If you’re struggling to repay your business debt, give Debt Busters a call on 1300 368 322. We’ve been helping business owners repay their debts for over 15 years, and we’d be happy to help you too.

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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.