What is a Part 9 Debt Agreement?
A Part 9 Debt Agreement, also known as a Part IX Agreement, is a legally binding agreement between you and your creditors to settle your debts. It is designed to provide an alternative to bankruptcy, offering a structured way to repay what you can afford while protecting you from further legal action by creditors. It is governed by the Bankruptcy Act 1966 and administered by the Australian Financial Security Authority (AFSA).
Benefits of Part 9 Debt Agreement
A Part 9 Debt Agreement will make getting out of debt manageable, providing a structured, legally backed solution that reduces financial pressure and creates a clear path forward.
Legally binding
Creditors must follow the agreement, protecting you from further action.
Pause interest & fees
Pay no interest or fees during your agreement.
Debt made manageable
A managable repayment through a Part 9 agreement, powered by MyBudget.
Clear end date
Know exactly when you’ll be debt-free.
What types of debts can be included?
A Part 9 Debt Agreement works by combining your unsecured debts into a manageable repayment through your debt agreement, powered by MyBudget.
A Part 9 Agreement generally covers unsecured debts such as:
- credit card debt
- personal loans
- store cards
- old utility bills
- old medical bills.
Secured debts like mortgages and car loans are not included and must be managed separately.
How it works
No more stress, no more confusion, just three simple steps to debt relief.
Book a free consultation
Start with a free, confidential chat. No pressure, just real debt solutions.
Debt assessment and budget plan
Get a personalised plan with manageable repayments and a clear debt-free date.
Your path, your choice
You’re in control. We provide expert guidance and a solution that fits your life.
Am I Eligible for a Part 9 Debt Agreement?
We know dealing with debt is stressful, but you don’t have to face it alone. Our team will listen, assess your situation, and walk you through your options with care and understanding. If a Part 9 Debt Agreement is right for you, we’ll guide you every step of the way.
- be unable to repay your debts as they fall due
- have unsecured debts less than $144,235.00
- have assets worth less than $288,470.00
- earn less than $108,176.25 annually after tax
- not been bankrupt or in a Part 9 Debt Agreement in the last 10 years.
What’s the difference between Part 9, Part 10, and bankruptcy?
Not sure which solution is right for you? This guide breaks down Part 9 Debt Agreements, Part 10, and Bankruptcy, so you can understand your options and get back on track.
Avoid bankruptcy with a manageable plan
A Part 9 Debt Agreement is a legally binding way to repay what you can afford, without the long-term impacts of bankruptcy. It allows you to:
- combine debts into one manageable repayment
- pause interest during agreement
- know your debt-free date.
Only repay what you can afford, without going bankrupt.
For larger debts and more formality
A Part 10 Debt Agreement is for people with higher debts or valuable assets. It’s more formal and involves:
- for those who don't qualify for a Part 9
- stopping creditor actions
- avoiding full bankruptcy.
It’s a flexible option for those with bigger financial commitments.
Bankruptcy
Make a fresh start
Bankruptcy can clear your debts and provide much needed relief. But it’s important to be aware of the longer-term financial consequences it comes with. These include:
- being listed on the NPII for life
- losing control of your assets
- impacting your credit for up to 5 years.
Bankruptcy is a safety net, but it should only be considered as a last resort.
How will a Part 9 Agreement affect my credit and financial future?
Navigating debt can be overwhelming, but MyDebt Solutions, powered by MyBudget, is here to help. Whether it’s a Part 9 Agreement, Part 10 Agreement, or another solution, we’ll guide you to the best path forward.
| Debt Type | Duration |
| Defaults | 5 years from the date of collection |
| Serious Credit Infringements | 7 years from the date of collection |
| Current Loans | 2 years after the loan ends |
| Part 9 Debt Agreements | 5 years from the agreement start date, or longer if voided or terminated |
| Bankruptcy | 5 years from the bankruptcy date, or 2 years after it ends, whichever is longer |
Start your journey
What it is?
A Part 9 debt agreement is a formal way of settling most debts without going bankrupt. It’s an agreement between you and your creditors (those you owe money to).
What happens?
You propose a repayment plan to your creditors, outlining the
amount you can afford to repay and the timeframe. Your creditors then vote on whether to accept or reject the proposal.
Admin
A registered debt agreement administrator or trustee manages the agreement, monitoring compliance and distributing payments
to creditors.
Eligibility
To be eligible for a debt agreement, you must be insolvent, not
have been bankrupt or had a debt agreement in the past 10
years, and meet certain income and asset limits.
Frequently Asked Questions
Why should I consider a debt agreement?
If your income is not enough to cover your basic living needs and the minimum repayments to creditors, you may be deemed insolvent. In this situation, a debt agreement can provide a structured way to manage your debts and avoid bankruptcy.
How do I enter a debt agreement?
What debts are covered by a debt agreement?
Debt agreements typically cover unsecured debts such as:
- credit and store cards
- unsecured personal loans and pay day loans
- overdrawn bank accounts and unpaid rent
- old medical, old legal and accounting fees
Secured debts (like mortgages) are not included, but secured creditors can vote on the unsecured portion of the debt.
