Part 9 Debt Agreement

Your name, and some other details will be recorded on the National Personal Insolvency Index (NPII) for a limited time.  Usually, this is period is 5 years, but can be longer in some circumstances.

Yes, obtaining credit can become difficult in the short term. Details may appear on a credit reporting agency’s records for up to 5 years, or longer in some circumstances.

If you enter into a Debt Agreement you are committing An act of Bankruptcy - this means that a creditor can apply to the court to make you bankrupt if the Debt Agreement fails.

During the voting period, creditors can’t take recovery action, enforce a remedy against you or your property and must suspend deductions by garnishee on your income.

If the terms of the agreement are not met and your agreement terminates, creditors can recommence recovery action. This will include back-dated interest.  However, before an agreement is terminated, you can request a ‘variation’ to the original agreement that meets your current/changed affordability level.

If trading under a business name or assumed name (whether alone or in partnership) the Debt Agreement must be disclosed to all people dealing with the business. If operating a sole trader business while in a Debt Agreement, you should include your full name in the business name; e.g. John Smith trading as Smith’s Shop.