Lodge a debt agreement proposal

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Debt agreement

If a debt agreement is the best choice for you, you will need to choose a debt agreement administrator. Your appointed debt agreement administrator should:

  • Give you information about debt agreements and the consequences.
  • Inform you of any fees to lodge a debt agreement proposal, or to manage your debt agreement if it is accepted.
  • Lodge your debt agreement proposal with us within 14 days of you signing it.
  • Contact creditors to stop garnishees on wages.
  • Provide ongoing guidance with the agreement.
  • Issue a signed certificate that states:
    • You have read the prescribed information about the consequences of bankruptcy, debt agreements and other options.
    • You can afford to make the payments in your proposal
    • You are truthfully disclosing your financial affairs to your creditors.
    • Details of the creditors which are related entities of the debt agreement administrator.

Before you apply for a debt agreement

Speak to a financial counsellor

If you’re in financial difficulty, we recommend contacting a financial counsellor. Financial counsellors offer free, independent and confidential services to help you get back on track and discuss your options for dealing with unmanageable debt. 

To speak with a financial counsellor contact the National Debt Helpline on 1800 007 007. This free hotline is open from 9:30am to 4:30pm Monday to Friday. There are also more tools and resources available online on the National Debt Helpline website. 

Understand the consequences

The consequences of entering a debt agreement are serious. Make sure you read and understand the consequences of a debt agreement before you enter into one.

For more information about debt agreements and other insolvency options see:

How to apply for a debt agreement

You need to talk to a registered debt agreement administrator if you want to enter into a debt agreement.

A debt agreement administrator will help you prepare your debt agreement proposal. They will then submit it to us on your behalf. 

We then manage the voting process and acceptance of your debt agreement proposal. 

Once we receive your application

  • We send your debt agreement proposal to each creditor, asking them to vote by a nominated date. 
  • The voting period is normally 5 weeks. Creditors can vote 'yes' or 'no', or can abstain from voting.
  • Creditors lodge their vote by submitting a Claim and Vote form. This contains the details of their claim, and their vote.
  • We count the votes. If a majority of creditors (by dollar value) vote yes, we accept your proposal. Votes from the debt agreement administrator or related entities do not count. 

If your proposal becomes a debt agreement

  • You must comply with the terms of the agreement and ensure you complete it by the due date.
  • If you have problems making payments, talk to your administrator as soon as possible.
  • Your administrator informs creditors and us on the progress of your agreement.
  • You make payments directly to your administrator. 
  • Your administrator deals with the payments and pays the creditors in the way as set out in the agreement.
  • Your administrator pays the creditors after their fees and AFSA charges. 

If AFSA, or your creditors, reject or cancel your proposal

  • We will notify you and your creditors of the outcome.
  • Creditors can continue to recover their debts by applying to make you make bankrupt if your debt is over $10,000.
  • The outcome of the proposal result will appear on the National Personal Insolvency Index (NPII). This applies even if we accept your proposal.