Help with

Debt Agreements

Trying to arrange a debt agreement? We can help.

You’re on the edge...

Life should be fun and exciting. But if you’re thinking about arranging a debt agreement, you’re experiencing anything but joy.

You’re chased by creditors and debt collectors, non-stop. Missing all your loan repayments has you on edge.

Your credit cards are maxed out. No one will lend you another cent. And you’ve got nothing left in your pockets.

If you don’t pay up, you could lose your car or your home. You could lose everything.

Understanding insolvency and debt agreements

If you’re looking for ways to relieve financial stress, don’t arrange a debt agreement just yet.

Arranging a debt agreement isn’t a casual action. And it’s not taken lightly by financial authorities.

Because of this, it’s important to have a top-level understanding of the terms below.

Personal Insolvency

Formal Debt Agreement


Personal insolvency is a legal term that describes your financial position.

If you’re unable to pay debts when they’re due, you’re insolvent.

Arranging a debt agreement or declaring bankruptcy is an act of insolvency.

A formal debt agreement is a legally binding arrangement. It lets you pay your creditors a sum you can afford.

A debt agreement is also referred to as a Part 9 or Part IX debt agreement. It falls under Bankruptcy Act 1966.

To declare yourself bankrupt is to let the world know you have absolutely nothing in your pockets.

Successfully filing for bankruptcy releases you from most of your debts.

Arranging a formal debt agreement may seem attractive for stress relief. But again, don’t push forward with it just yet.

While there are upsides to arranging a debt agreement, there are some long-term downsides as well.

Don’t feel bad if you’re thinking about arranging a debt agreement

It’s not always overspending or poor money management that leads to a state of insolvency.

Sometimes in life, we get unlucky. Some things are just out of our hands.

You may have been injured or become severely ill and as a result unable to earn
You may have lost your job unexpectedly and unable to get another quickly
You may have suddenly lost a significant portion of your income
You may have gone through a relationship breakdown

There’s no need to feel embarrassed or ashamed. Don’t feel bad about your financial state.

Need help arranging a debt agreement or looking at alternatives?

Book your free consultation now

The upside of debt agreements

For some, entering into a debt agreement is an effective debt strategy.

If your creditors accept your proposal --

You won’t need to pay more interest
No further interest will be incurred on the debts included in your debt agreement.
Your repayments become fixed
Repayments are fixed at a certain amount for a set time period, usually up to five years.
You’re protected
During this set period, you’re protected from debt collectors and any legal actions from creditors who are party to the agreement.

The downside of debt agreements

Before you push forward with arranging a debt agreement, you need to understand the consequences.

With debt agreements --

You’re NOT released from your debts
And you don’t get a pass on all types of debt. You still need to pay back what you owe.
You’re registered by the government
Your name will be listed on the National Personal Insolvency Index (NPII) for at least five years.
Listing records are public
The NPII’s listing is publicly available for all to see. Your debt agreement will be on your credit file for five years.
You’re cut off
Your access to credible sources of credit will be severely limited.

The worst part of a debt agreement

Failed attempts at arranging debt agreements can result in a terrible side-effect.

If creditors reject your debt agreement proposal, they can use your action to force your bankruptcy.

Your creditors can then --

Sell your belongings to get their money back
Take control of a portion of your salary
Limit your access to credit
Stop you from working in certain professions

Even after your bankruptcy is over, borrowing may still be hard.

With a successfully arranged debt agreement you’re only listed on the NPII for five years.

But if bankruptcy is forced up on you, you’re listed forever.

Need help arranging a debt agreement or looking at alternatives?

Book your free consultation now

Having second thoughts about arranging a debt agreement?

If you are, it’s understandable. In some cases, a formal debt agreement can increase your financial stress.

The truth is, you may not need a debt agreement at all. Each and every person’s financial situation is unique.

Our primary goal is to relieve your financial stress by developing financial solutions that work just for you.

All you need to do is meet with us. A consultation session with us is completely FREE of charge. In our session, we’ll thoroughly analyse --
Your bills
Your loans
Your expenses
Your current debts

Through this analysis, we’ll help you develop an accurate understanding of your financial situation.

In a lot of cases, we can create a financial plan that may bypass a formal debt agreement entirely.

Arranging debt agreements have some intensely negative consequences.

We’re here to help you avoid them. As part of this plan, we can --

Negotiate a break in your payments
Apply for a mortgage or personal loan variation
Arrange to pay your debt over a longer period of time at a more affordable rate
Get debt collectors off your back so you can start enjoying life again

Need help arranging a debt agreement or looking at alternatives?

Book your free consultation now

What if I really do need a debt agreement?

Depending on your financial situation, arranging a debt agreement may be unavoidable.

If we’ve gone through a complete analysis of your financials and come to this conclusion, we can help you arrange a formal debt agreement.

In fact, we can handle everything to make your life less stressful than it already is, if you like.

You’ll be able to --

Stress less
We help you arrange the debt agreement and keep you on track through the process.
Sleep better
Stressing less means you can sleep more peacefully at night.
Look to a brighter future
Arranging a debt agreement isn’t the end. The road ahead may get tough, but it will be a new beginning.

In any case, we’ll be here to explain each and every step of the process and answer all your questions.

Need help arranging a debt agreement?

Book your free consultation now

In Australia, personal insolvency is overseen by the federal government through the Australian Financial Security Authority (AFSA).

The AFSA registers all debt agreements and bankruptcies.

We’re the debt agreement experts

We’ve helped many Aussies through the challenging process of arranging formal debt agreements.

This is what some of them have to say.

Grant & Alisha, MyBudget clients

“Life before MyBudget was very stressful – we didn’t actually do a lot of talking. We had our young son, so most of the time it would have been just me hiding everything from Alicia when it came to our bills and how much money we had in savings. Anything we kind of wanted I would just go and get and by that stage all the savings were gone and that’s when we had to come to MyBudget,”

Grant & Alisha, MyBudget clients

Christy & Karl, MyBudget clients

"Before MyBudget I was probably 20 to 30 thousand dollars in debt scattered across maybe six to seven different companies...Not only are we now debt-free, but we are starting to put money aside for things like a holiday or going away again next year...We [are] looking to buy a house down the line."

Christy & Karl, MyBudget clients

Dan, MyBudget client

“Before MyBudget the debt was really bad, it had gotten to a point where I’d spent too much money on travelling and going out and having a great life and living a lifestyle that really I couldn’t live up to... one day I woke up and went ‘I need to call MyBudget and sort something out’ and once I put something into place it instantly gave me the relief that I needed.”

Dan, MyBudget client

Need help arranging a debt agreement now?

If you do, we’re here to provide assistance.

We’ve helped many get through this difficult experience before. We can help you too.

If you’d like more information, get in touch on 1300 300 922.

You can also book your free consultation by clicking the button below.

Book your free consultation now

Find out more about MyBudget. Speak to us today. 

We can answer your questions and show you how easy it is to get started.

Get started!
Call us now
1300 300 922

Want us to contact you?
We'll call when it suits you.

Call Me

Things you should know

MyDebtSolution Pty Ltd works alongside MyBudget. MyDebtSolution Pty Ltd registration number is 1173.

Copyright 2019 MyDebtSolution Pty Ltd.