2 March 2026, 03:45 PM
Once your Part 9 Debt Agreement proposal is lodged with the Australian Financial Security Authority (AFSA), your creditors get 35 days to vote (or 42 days in December). If more than 50% in dollar value of those who vote say yes, your Part 9 Debt Agreement is officially accepted and comes into force.
What happens once it's accepted:
From that moment, your unsecured creditors, the ones covered by the agreement, cannot take any legal action against you. No more threatening letters, no phone calls from debt collectors, no court proceedings. You simply make your single agreed repayment to your debt agreement administrator each week, fortnight, or month, whatever suits your budget. At the end of the agreement, once all payments are made, those debts are completely cleared, even if you only repaid a portion of the original amount owed.
Yes, it does affect your credit score:
This is the honest truth — a Part 9 Debt Agreement will appear on your credit report for up to 5 years (sometimes longer depending on circumstances). It will also be listed permanently on the National Personal Insolvency Index (NPII), which is a public government register. This means getting a new credit card, personal loan, or mortgage during that period will be difficult. However, for many people, the trade-off is worth it, the relief from unmanageable debt far outweighs a temporary hit to their credit file.
What if creditors say no?
If your proposal is rejected, your debts are revived in full, meaning creditors can pursue you again for the full amounts, plus any interest that built up during the 35-day voting period. In some cases, your administrator may be able to rework and resubmit your proposal. If that's not possible, you may need to explore other options like a Personal Insolvency Agreement (PIA) or, as a last resort, bankruptcy.
The key takeaway: a Part 9 Debt Agreement can be a genuine lifeline if you're in serious financial trouble but want to avoid bankruptcy and get back on solid ground. Getting proper advice, like a free consultation from Debt Buddy, before you start the process is absolutely the smart move.
What happens once it's accepted:
From that moment, your unsecured creditors, the ones covered by the agreement, cannot take any legal action against you. No more threatening letters, no phone calls from debt collectors, no court proceedings. You simply make your single agreed repayment to your debt agreement administrator each week, fortnight, or month, whatever suits your budget. At the end of the agreement, once all payments are made, those debts are completely cleared, even if you only repaid a portion of the original amount owed.
Yes, it does affect your credit score:
This is the honest truth — a Part 9 Debt Agreement will appear on your credit report for up to 5 years (sometimes longer depending on circumstances). It will also be listed permanently on the National Personal Insolvency Index (NPII), which is a public government register. This means getting a new credit card, personal loan, or mortgage during that period will be difficult. However, for many people, the trade-off is worth it, the relief from unmanageable debt far outweighs a temporary hit to their credit file.
What if creditors say no?
If your proposal is rejected, your debts are revived in full, meaning creditors can pursue you again for the full amounts, plus any interest that built up during the 35-day voting period. In some cases, your administrator may be able to rework and resubmit your proposal. If that's not possible, you may need to explore other options like a Personal Insolvency Agreement (PIA) or, as a last resort, bankruptcy.
The key takeaway: a Part 9 Debt Agreement can be a genuine lifeline if you're in serious financial trouble but want to avoid bankruptcy and get back on solid ground. Getting proper advice, like a free consultation from Debt Buddy, before you start the process is absolutely the smart move.