Lodge a debt agreement proposal

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.
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Before you apply:

Make sure you have considered the following:

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Next step:

Find contact details for practising registered debt agreement administrators.

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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.
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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.
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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.
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Related links: 
Where to find help