Thinking about a Part 9 Debt Agreement?

A Part 9 Debt Agreement is a formal legal framework designed for Australians experiencing severe financial hardship who cannot reasonably repay their debts in full but want to avoid total bankruptcy. The primary benefits are that it provides a structured repayment pathway, stops creditor harassment, freezes interest, and can help homeowners protect the equity in their property from being liquidated under bankruptcy. However, because of its long-term legal consequences, it should only be considered after exploring all informal options.

A formal Debt Agreement (Part IX) is a legally binding contract regulated under the Australian Bankruptcy Act 1966. It is an official act of bankruptcy that is listed on a public register and severely restricts your credit file for 5 years. A “Debt Arrangement” or Debt Management Plan with MyBudget is an informal, private strategy. We restructure your existing income and negotiate with your creditors directly to pause interest and lower payments without any harsh insolvency marks on your credit score.

Most unsecured debts (debts not tied to a specific asset like a house or car) can be covered. These include:

• Credit cards
• Personal loans
• Store cards
• Buy Now, Pay Later (BNPL) debts
• Unsecured lines of credit
• Certain unpaid bills

The right debt solution depends on your income, expenses, debts, assets and long-term financial goals. While a Part IX Debt Agreement can be an effective solution for some Australians experiencing serious financial stress, it isn’t the right fit for everyone. At MyBudget, we assess your full financial situation before helping you determine whether a debt agreement, informal debt management strategy or another solution may be more appropriate.

If a Part IX Debt Agreement is the most appropriate solution for your circumstances, we can help. Our sister company, MyDebtSolutions, has been a registered Debt Agreement Administrator since 2007 and specialises in helping eligible Australians access formal debt agreements. This means you can receive guidance on both informal and formal debt solutions, helping you make an informed decision based on your individual situation.

No. Speaking to MyBudget, booking an appointment, or exploring your debt management options will not affect your credit score. Your initial appointment is free, confidential and obligation-free, giving you the opportunity to understand your options before making any major financial decisions and know if there will be an impact to your credit score.

A debt agreement is a formal insolvency arrangement that can affect your credit file and future borrowing capacity. Before committing to a long-term financial decision, it’s important to understand all available options and whether a debt agreement is genuinely the most appropriate solution for your circumstances. MyBudget helps you assess the full picture so you can move forward with confidence and clarity.