Debt Agreements
At Debt Buddy, we understand that debt can become overwhelming, affecting both individuals and businesses across Australia. Debt Agreements are a powerful tool meticulously crafted to assist you in creating cost-effective and feasible plans for repaying your debts. Whether you’re facing personal financial challenges or wrestling with business-related debt, our seasoned team is dedicated to guiding you towards the most suitable resolution.
What is a Part 9 Debt Agreement?
A Debt Agreement also known as a part 9 is designed to provide a structured and manageable way for individuals to deal with their unmanageable debts. It allows debtors to propose a legally binding agreement to their creditors, outlining how they can repay their debts over a specified period, up to 3 or 5 years. If accepted you make repayments to Debt Buddy, rather than individual payments to your creditors. After you complete the payments and the agreement ends, your unsecured creditors covered by the agreement can’t recover the rest of the money you owe.
Key Benefits of a Part 9 Debt Agreement
- Structured Repayment Plan: You’ll have a clear and structured plan to pay off your debt over a defined period. 3 or 5 years,
- Upon acceptance a freeze to unsecured debt interest: Enjoy the advantage of a reduced single payment, making your debts more affordable.
- Relief from Unsecured Debts: It covers unsecured debts, such as credit cards and personal loans, providing a comprehensive solution.
- Protection from Creditors: Once your Part 9 Debt Agreement is in place, creditors are legally bound to adhere to the agreed-upon terms.
- A stop to creditor phone calls.

How Debt Buddy Can Help
Our experienced team at Debt Buddy specialises in navigating the intricacies of Part 9 Debt Agreements. We work closely with you to develop a comprehensive debt agreement proposal that aligns with your financial situation and goals. We act as your trusted debt agreement administrator, managing the negotiation process with creditors and try ensuring your interests are best protected.
Do all creditors need to agree?
No, not all creditors have to agree. The majority in value, i.e., 50.01% of the dollar amount of those creditors who decide to vote and are entitled to vote must agree to your proposal.
What happens if the Debt Agreement gets accepted?
While a Debt Agreement is in force, an unsecured creditor covered by the debt agreement cannot take any action against you or your property. A debt agreement ends when you have completed all obligations and payments. At that point you are released from all the debts covered in the debt agreement.
Is a Debt Agreement the same as going Bankrupt?
No, a Debt Agreement is an alternative option to Bankruptcy. The debtor is not bankrupt. However, proposing a Debt Agreement is an act of bankruptcy.
NPII
There will be a record of your debt agreement proposal and the debt agreement for 5 years, or longer in some circumstances on the National Personal Insolvency Index (the NPII), which is an electronic register of all personal insolvency proceedings.
Credit Report
The ability of a debtor to obtain further credit is affected. Details may also appear in a credit reporting agency’s record for up to 5 years, or longer in some circumstances.

FAQs About Debt Agreements
A debt agreement, also known as a Part 9, is a legally binding agreement between you and your creditors. Debt Agreements can be a flexible way to come to an arrangementto settle debts without becoming bankrupt.
We negotiate to pay a percentage of your combined debt that you can afford over a period. You make repayments to Debt Buddy, rather than individual payments to your creditors.
After you complete the payments and the agreement ends, your creditors can’t recoverthe rest of the money you owe.
It depends on the agreement we negotiated with your creditors, but it’s usually 3 years.
Contact Debt Buddy to discuss how long the debt agreement will last.
You can lodge a debt agreement proposal if you:
- Are unable to pay your debts when they are due.
- Have not been bankrupt, had a debt agreement or personal insolvency agreement in the last 10 years.
- Have unsecured debts and assets less than the set amount.
- Estimate your after-tax income forthe next 12 monthsto be lessthan the set amount.
- consolidation loans or agreements to borrow money.
- able to release you fromall types of debts-some debts you willstill need to pay. Such as child support and some traffic fines.
- You must continue to pay your secured debts such as home loans and carloans.
If you meet the eligibility requirements, Debt Buddy can help you with your application.
- Gather the requested documentation pay slips, bank statement, credit card statements etc.
- We will prepare your paperwork. You need to read, understand, sign and send back to Debt Buddy for us to lodge within 14 days of your signing and dating the Debt Agreement Proposal and Statement of Affairs.
- If your debt agreement has been lodged and accepted for processing by the office of the Australian Financial Security Authority (AFSA) your creditors will have 35 calendar days to vote, unless your proposal is sent for voting during December when creditors have 42 calendar days to vote either yes, no or abstain by lodging a completed voting form.
- Afterthe votes aredue, AFSAwillreviewthecreditors votes. For adebt agreement proposal to be accepted, AFSA must receive “yes” votes from a majority in value of the creditors who vote. If the proposal is accepted by a majority in value of creditors who vote: the proposal becomes a debt agreement.
No, not all creditors have to agree. The majority in value, i.e., 50.01% of the dollar amount of those creditors who decide to vote and are entitled to vote have to agree to your proposal.
Yes. Yourrelationship with your creditorsisimportant. You should explain yoursituation to your creditors and
encourage them to support your Debt Agreement application. You may also forward our details onto your
creditors, and we are happy to talk to them on your behalf. You must continue to pay yoursecured creditors.
While a Debt Agreement is in force, an unsecured creditor cannot take any action against you or your property. A debt agreement ends when you have completed all obligations and payments. At that point you are released from all the debts covered in the debt agreement.
Should your creditorsreject your Proposal then we may be able to resubmit. This will depend on your creditors and the reason they rejected your Proposal. Should this happen we will contact you to work out a solution.
However if your creditors reject your Proposal your debts are revived. This means your creditors can pursue you for payments and any interest accrued during the 35-day voting period is added to your debts.
Provide information: you need to provide the information we request making sure it is accurate and current. It is critical that you are honest and disclose all relevant information about your situation.
Read, understand & sign paperwork: To propose a Part 9 Debt Agreement you will need to read, understand and sign a number of documents which are legally binding. You will need to read through all documents carefully and thoroughly so you are fully informed. There are penalties underthe Bankruptcy Act& Criminal
Code for providing false or misleading information.
You should notify usimmediately so we can discussthe options you have depending on your circumstances.
We are here to help.
Credit Report – for a limited time.
Entering a debt agreement can affect your ability to obtain future credit. Details may also appearin a credit reporting agency’s record for up to 5 years, or longer, in some circumstances.
NPII – for a limited time
Proposing a debt agreement is an act of bankruptcy.
A debt agreement is a binding agreement under Part 9 of the Bankruptcy Act 1966. The debtor is not bankrupt. It is an alternative option.
If your creditors accept your debt agreement proposal you can achieve one manageable payment for your debt Agreement that is based on affordability with no interest, no overlimit fees or penalty fees.
Improved control of yourfinances, you will know exactly how much to pay each week, fortnight or month. Knowing when your agreement will be finalised.
If you complete your debt agreement you will become unsecure debt free with the exception of some particular debtsthatsurvive a debt agreement if applicable debts incurred by fraud, child support debts, fines, and court-ordered payments etc.
There are four fees in total. Two Debt Buddy fees and two government fees.
REMINDER: Your payments are based on affordability and we will not pressure you to make a payment you cannot afford.
FEE #1
- Debt Buddy set up fee: This is for all the work involved in setting up your application. This is paid by instalments(normally over 10 weeks) that are based on affordability. The difference will be included in your debt agreement and receive the same rate ofreturn as other creditors.
FEE #2
- AFSA Lodgment Fee: AFSA (Government) charge a lodgment fee (currently $200) for every debt agreement proposal they process.
We cover this payment for you and recoverit through the 1st 10 payments as mentioned above (Set up fee).
FEE #3
- Debt Buddy Administration Fee: Debt Buddy will collect this fee as a percentage o f each debt agreement payment you make only when and if your Debt Agreement is accepted. By law these fees must b e displayed in your debt agreement proposal as a total dollar amount ($) and as a percentage (%) of the total amount offered under the proposal. You can find
the ongoing fee calculations on page 1 of your debt agreement proposal and explanatory statement. This fee is included in your debt agreement payment amount. I t is an amount your creditors vote to allow your administrator to withhold to administer your debt agreement over the duration of your proposal.
FEE #4
- AFSA Realisations charge: This is a levy that is imposed by the government, currently 7% of your debt agreement payment only when
and if your debt agreement is accepted to assist in funding the cost of certain activities undertaken by AFSA that benefit the insolvency system. These activates include the regulation of the personal insolvency system,
investigating alleged offences, monitoring, and regulating trustees and administrators and providing information to a range of clients.
Please do not hesitate to contact our office if you have any questions or would like any further explanation.
You cannot ask too many questions.
Debt Buddy is Your Trusted Financial Partner
Peter Curtis, with a deep passion for helping individuals and businesses regain control of their finances, embarked on his journey in the debt relief industry in 2007. Witnessing the profound impact debt relief had on people’s lives, he was determined to make a difference. Peter’s mission is to assist people from various backgrounds and situations, guiding them towards debt freedom and financial stability.
After five years with a prominent firm, Peter founded Debt Buddy in 2014, establishing a boutique practice that offers a wider range of services to cater to diverse needs. Over the past 16 years, Peter has tirelessly built the knowledge and experience to navigate both simple and complex debt scenarios, helping countless individuals and businesses regain their financial footing.
At Debt Buddy, we are committed to providing professional guidance and support to our clients. We understand the importance of transparency, and we believe in empowering you with the knowledge to make informed decisions about your financial future. Our goal is to help you achieve financial freedom.


Secure Your Financial Future Today
Are you ready to take control of your finances, optimise your loans, and secure a brighter financial future?
Contact Debt Buddy today to learn more about our debt services and how we can tailor them to your unique needs.
Our team is here to assist you every step of the way, helping you make informed decisions about interest rates, loan repayments, and the benefit of refinancing. Let’s work together to achieve your financial goals and secure a better tomorrow.