How do I vary or terminate a debt agreement?

If you are a creditor[?] in a debt agreement[?], it is important to include your debt to ensure you receive payments.

If your debt isn't included, contact the debt agreement administrator[?] and provide the following information:

  • You / your organisation's name and address.
  • Nature of the debt (e.g. personal loan, credit card).
  • Amount of debt and reference.
  • The date the person incurred the debt.

Vary a debt agreement

If you are a creditor in a debt agreement, it may be possible to change (or vary) the agreement. A debt agreement administrator can propose to vary the agreement if they are an affected creditor. The person who is in the debt agreement may also propose to vary the agreement.

This usually happens if the person can no longer afford to make the agreed payments. This may be due to a change in their circumstances, such as if the person:

  • loses their job
  • household expenses increase
  • has an additional dependant to support.

To vary an agreement you need to submit a variation proposal with us. This should include:

  • an explanation of the changes in the person's circumstances
  • any communication you've had with the person regarding their changes or payments
  • summary of payments in debt agreement (including if they are in arrears)

Once you've submitted the proposal, we assess it. If we accept the proposal, we send it to all eligible creditors to vote on.

For information on the voting process see: Official Receiver Practice Statement 13 - Voting on debt agreement, variation and termination proposals

For more information about varying a debt agreement see: Official Receiver Practice Statement 15 - Proposal to vary a debt agreement and withdrawal of a proposal by the Official Receiver

Next steps

Complete the form below to vary a debt agreement. You can send us a document or form online.

Terminate a debt agreement

If you are a creditor in a debt agreement, it may be possible for you to cancel (or terminate) the agreement. Normally this happens because the person in the agreement is no longer able to make payments. For example if the person:

  • failed to start or continue making payments and there it's not likely they will complete the agreement
  • had a change in circumstances and a variation to reduce payments is not feasible
  • did not disclose their accurate income or employment
  • added a significant forgotten debt, resulting in creditors receiving less payments

To terminate an agreement you must submit a termination proposal with us. This should include:

  • an explanation of the changes in the person's circumstances, if applicable
  • supporting statement
  • status report from the debt agreement administrator showing:
    • payment history
    • arrears and
    • the likelihood of them continuing payments
      We cannot accept the proposal if the payment are to date.

Once you've submitted the proposal, we assess it. If we accept the proposal, we send it to all eligible creditors to vote on.

For information on the voting process see: Official Receiver Practice Statement 13 - Voting on debt agreement, variation and termination proposals

For more information about varying a debt agreement see: Official Receiver Practice Statement 16 - Proposal to terminate a debt agreement and withdrawal of a proposal

Next steps

Complete the form below to terminate a debt agreement. You can send us a document online.

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