Check my eligibility

Use this tool to help you find the formal insolvency options you're eligible for if you can't pay your debts.

On this page

Time to complete: 3 mins

Interactive tool to help you check your eligibility

You will be asked a few questions about:

  • Money you owe
  • Your income
  • Things you own

You will then be shown your main formal options under the Bankruptcy Act 1966

Do you live or conduct business in Australia?
Have you been bankrupt, proposed a personal insolvency agreement or made a debt agreement in the last 10 years?
Have you been bankrupt, proposed a personal insolvency agreement or made a debt agreement in the last 10 years?
Is your after tax income more than $107,739.45 per year?
Is your after tax income more than $107,739.45 per year?
Have you proposed a personal insolvency agreement in the last 6 months?
Do you owe more than $143,652.60 in unsecured debt?
Unsecured debt is a loan that is not tied to any asset e.g. credit cards.
Do you owe more than $143,652.60 in unsecured debt?
Unsecured debt is a loan that is not tied to any asset e.g. credit cards.
Do you have unsecured assets (things you own) worth more than $287,305.20?
Unsecured assets are things you own that aren't under any finance.
Do you have unsecured assets (things you own) worth more than $287,305.20?
Unsecured assets are things you own that aren't under any finance.
Based on your answers, you can consider these formal options under the Bankruptcy Act 1966:
Apply to become bankrupt

Bankruptcy is a legal process that releases you from most debts and allows you to make a fresh start. Bankruptcy normally lasts for 3 years and 1 day. When you become bankrupt a trustee is appointed. This can be either be the Official Trustee (AFSA) or a registered trustee. A trustee will manage your bankruptcy.

When you are bankrupt:

  • you must provide details of your debts, income and assets to your trustee
  • your trustee notifies your creditors that you're bankrupt - this stops most creditors from contacting you about your debt
  • you still need to pay some types of debts
  • your trustee can sell some of your assets to help pay your debts
  • you may need to make compulsory payments if your income exceeds a set amount

Bankruptcy may have a serious impact on you and your bankruptcy will be listed on a public register forever. Bankruptcy may affect your ability to:

  • get credit
  • travel overseas
  • work in some industries

Read more about the consequences of bankruptcy or find out how to apply for bankruptcy.

Propose a debt agreement

A debt agreement, also known as a Part 9, is a legally binding agreement between you and your creditors to pay an amount you can afford.

How debt agreements work:

  • You negotiate to pay a percentage of your combined debt over a period of time.
  • The length of a debt agreement depends on what you negotiate with your creditors, but can be up to 3 years, or up to 5 years if you own, or have a long-term lease over, your home.
  • You make repayments to your debt agreement administrator, not your creditors.
  • Fees apply to process, propose and manage the agreement. Fees between administrators vary, contact a registered debt agreement administrator to discuss fees before you go ahead. The total set-up fee (which may include the lodgement fee) and any ongoing fees must be included in your debt agreement proposal.
  • After you complete the payments, your agreement ends. Your creditors can't then try to recover the rest of the money you owe.

Debt agreements are not:

  • consolidation loans or agreements to borrow money
  • able to release you from all types of debts - some debts you will still need to pay.

Entering a debt agreement may have a serious impact on you. It may affect your ability to get credit and will appear on a public register for a limited time.

Read more about the consequences of a debt agreement or find out how to lodge a debt agreement proposal

Set up a Personal insolvency agreement

A personal insolvency agreement (PIA), also known as a Part 10, is a legally binding agreement between you and your creditors to pay an agreed amount in instalments or lump sum.

PIAs can be a flexible way to settle debts without becoming bankrupt.

A trustee is appointed to take control of your property and make an offer to your creditors. 

Important information you need to know:

  • The length of your PIA will depend on what you negotiate with your trustee and creditors.
  • You may keep your assets (such as house or car) if terms of the agreement allow.
  • Fees apply to process, propose and manage the agreement. Fees between trustees vary, contact a registered trustee to discuss the fees before you go ahead.
  • You may not be released from all debts.

Entering a PIA may have a serious impact on you and will be listed on a public register forever. It may affect your ability to:

  • get credit
  • work in some industries

Read more about the consequences of PIA or find out how to lodge a PIA proposal

Based on your answers, you can consider these formal options under the Bankruptcy Act 1966:
Apply to become bankrupt

Bankruptcy is a legal process that releases you from most debts and allows you to make a fresh start. Bankruptcy normally lasts for 3 years and 1 day. When you become bankrupt a trustee is appointed. This can be either be the Official Trustee (AFSA) or a registered trustee. A trustee will manage your bankruptcy.

When you are bankrupt:

  • you must provide details of your debts, income and assets to your trustee
  • your trustee notifies your creditors that you're bankrupt - this stops most creditors from contacting you about your debt
  • you still need to pay some types of debts
  • your trustee can sell some of your assets to help pay your debts
  • you may need to make compulsory payments if your income exceeds a set amount

Bankruptcy may have a serious impact on you and your bankruptcy will be listed on a public register forever. Bankruptcy may affect your ability to:

  • get credit
  • travel overseas
  • work in some industries

Read more about the consequences of bankruptcy or find out how to apply for bankruptcy.

Set up a personal insolvency agreement

A personal insolvency agreement (PIA), also known as a Part 10, is a legally binding agreement between you and your creditors to pay an agreed amount in instalments or lump sum.

PIAs can be a flexible way to settle debts without becoming bankrupt.

A trustee is appointed to take control of your property and make an offer to your creditors.

Important information you need to know:

  • The length of your PIA will depend on what you negotiate with your trustee and creditors.
  • You may keep your assets (such as house or car) if terms of the agreement allow.
  • Fees apply to process, propose and manage the agreement. Fees between trustees vary, contact a registered trustee to discuss the fees before you go ahead.
  • You may not be released from all debts.

Entering a PIA may have a serious impact on you and will be listed on a public register forever. It may affect your ability to:

  • get credit
  • work in some industries

Read more about the consequences of PIA or find out how to lodge a PIA proposal

Seek advice

Financial counsellors are available in every state and territory. Their services are free, independent and confidential. They can help you get back on track, and discuss your options for dealing with unmanageable debt.

Know your options

You can compare the formal options for managing debts under the Bankruptcy Act 1966.

There are also other informal options for managing debt, such as speaking with your creditors and requesting a hardship arrangement.

Based on your answers, you can consider these formal options under the Bankruptcy Act 1966:
Apply to become bankrupt

Bankruptcy is a legal process that releases you from most debts and allows you to make a fresh start. Bankruptcy normally lasts for 3 years and 1 day. When you become bankrupt a trustee is appointed. This can be either be the Official Trustee (AFSA) or a registered trustee. A trustee will manage your bankruptcy.

When you are bankrupt:

  • you must provide details of your debts, income and assets to your trustee
  • your trustee notifies your creditors that you're bankrupt - this stops most creditors from contacting you about your debt
  • you still need to pay some types of debts
  • your trustee can sell some of your assets to help pay your debts
  • you may need to make compulsory payments if your income exceeds a set amount

Bankruptcy may have a serious impact on you and your bankruptcy will be listed on a public register forever. Bankruptcy may affect your ability to:

  • get credit
  • travel overseas
  • work in some industries

Read more about the consequences of bankruptcy or find out how to apply for bankruptcy.

Seek advice

Financial counsellors are available in every state and territory. Their services are free, independent and confidential. They can help you get back on track, and discuss your options for dealing with unmanageable debt.

Know your options

You can compare the formal options for managing debts under the Bankruptcy Act 1966.

There are also other informal options for managing debt, such as speaking with your creditors and requesting a hardship arrangement.

Based on your answers, you can consider these formal options under the Bankruptcy Act 1966:
Propose a debt agreement

A debt agreement, also known as a Part 9, is a legally binding agreement between you and your creditors to pay an amount you can afford.

How debt agreements work:

  • You negotiate to pay a percentage of your combined debt over a period of time.
  • The length of a debt agreement depends on what you negotiate with your creditors, but can be up to 3 years, or up to 5 years if you own, or have a long-term lease over, your home.
  • You make repayments to your debt agreement administrator, not your creditors.
  • Fees apply to process, propose and manage the agreement. Fees between administrators vary, contact a registered debt agreement administrator to discuss fees before you go ahead. The total set-up fee (which may include the lodgement fee) and any ongoing fees must be included in your debt agreement proposal.
  • After you complete the payments, your agreement ends. Your creditors can't then try to recover the rest of the money you owe.

Debt agreements are not:

  • consolidation loans or agreements to borrow money
  • able to release you from all types of debts - some debts you will still need to pay.

Entering a debt agreement may have a serious impact on you. It may affect your ability to get credit and will appear on a public register for a limited time.

Read more about the consequences of a debt agreement or find out how to lodge a debt agreement proposal

Seek advice

Financial counsellors are available in every state and territory. Their services are free, independent and confidential. They can help you get back on track, and discuss your options for dealing with unmanageable debt.

Know your options

You can compare the formal options for managing debts under the Bankruptcy Act 1966.

There are also other informal options for managing debt, such as speaking with your creditors and requesting a hardship arrangement.

Based on your answers, you are not eligible for any of the formal options under the Bankruptcy Act 1966:

If you need help managing your debt, you can:

Seek advice

Financial counsellors are available in every state and territory. Their services are free, independent and confidential. They can help you get back on track, and discuss your options for dealing with unmanageable debt.

Know your options

You can compare the formal options for managing debts under the Bankruptcy Act 1966.

There are also other informal options for managing debt, such as speaking with your creditors and requesting a hardship arrangement.

Download print version

Temporary debt protection

There is an additional option called temporary debt protection (or TDP), which provides you with a 21 day protection period from being pursued by unsecured creditors while you seek help and decide how to proceed. It may suit you if you need urgent relief to give you time to consider what your next step will be.

For more information on this option see What is temporary debt protection?

Where to find help

If you need help managing your debt, you can also:

Insolvency eligibility tool Compare your insolvency options Check how bankruptcy may affect you Where to find help