Lodge a debt agreement proposal

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:

Make sure you have considered the following:

Next step:

Find contact details for practising registered debt agreement administrators.

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 generally 5 weeks.
  • We count the votes. We must receive 'yes' votes from a majority of creditors in dollar value for acceptance of the proposal.

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.
  • Your administrator deals with the payments as set out in the agreement.

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 $5,000.
  • The outcome of the proposal result will appear on the National Personal Insolvency Index (NPII)[?]. This applies even if we accept your proposal.