If a debt agreement is the best choice for you, and you have chosen to appoint a debt agreement administrator, they should:
- 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.
- provide a signed certificate that states you:
- have read the prescribed information[?] about the consequences of bankruptcy, debt agreements and other options
- can afford to make the payments as per your proposal
- are truthfully disclosing your financial affairs to your creditors.
Before you apply:
Make sure you have considered the following:
- What are my options for dealing with unmanageable debt?
- Am I eligible for a debt agreement?
- What are the consequences of a debt agreement?
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.