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What is a Part 9 Debt Agreement

Simply, a Part 9 Debt Agreement is an agreement to settle debts over time. Instead of declaring Bankruptcy, people can elect to settle their debts through a Part 9 Debt Agreement. Should creditors accept your Part 9 Debt Agreement, they will not be able to contact you for debt collection, take legal action against you and the debts are frozen with no interest. A Part 9 Debt Agreement is an affordable solution and an alternative to bankruptcy

This website

The purpose of this website is to make sure that you are aware of what a Part 9 Debt Agreement (Part IX Debt Agreements) is, its benefits and consequences and how much it will cost you. Also, it’s important to know who to trust and whether Part 9 Debt Agreement is the most suitable option for you.

If you are looking at this website for the first time, it’s likely you need advice about deciding whether a Part 9 Debt Agreement is for you. If this is the case, here are some tips to consider BEFORE you commit.

NOT ALL COMPANY’S ARE THE SAME - before proceeding you should know

Question 1: Are they a REGISTERED DEBT AGREEMENT ADMINISTRATOR?

There are companies out there that will gather your information, put all your paperwork together and then pass it to a Registered Debt Agreement Administrator.

BEWARE: We recommend that you only deal with Registered Debt Agreement Administrators because they are not registered and…

• COST – If you are dealing with an unregistered broker or consultant, it’s possible that you will be expected to pay higher fees for longer terms. You need to know exactly how the company makes money. If they charge a fee, how much is it. You need to know that there are often application fees as well as administration fees. You need to know exactly how much all the fees are.
• QUALITY - Do they know what they are talking about?

If you speak with someone other than a Registered Debt Agreement Administrator / Trustee you may not be getting the best advice.

Registered Debt Agreement Administrators operate in a very stringent and regulated environment. The quality of advice you receive relates directly to whether or not the company you speak with is in fact registered.

• HOW LONG SHOULD IT TAKE?  – The process shouldn’t take 20-35 weeks, as some company’s may indicate. If the company says this is the case they may be stretching out the process to collect their fees. In most cases, the process should take around 6-8 weeks from start to finish.
• Know who You are Dealing With – There are a lot of companies that advertise aggressively on the internet by using numerous different company names and identities. Its important to know exactly who you are dealing with and whether or not they are registered through the government.

For a list of Registered Part 9 Debt Agreement Administrators, call this number: 1300 332 834

Question 2: Does the Part 9 Debt Agreement Administrator have a REFUND POLICY?

If your Part 9 Debt Agreement Administrator has charged you an application fee, and your creditors have rejected your Part 9 Debt Agreement, will you get a refund? You should consider only dealing with a company that has a refund policy.

Case Study 1:  John applied for a Debt Agreement and agreed to pay the debt agreement company a fee of $1450. Unfortunately for John, his Debt Agreement was rejected by his creditors. Because John was paying the debt agreement company their fee over 15 weeks (and not making any payments to his creditors), John was left with 15 weeks of unpaid debts in addition to being $1450 worse off.

John felt ripped off because the Debt Agreement Company didn’t have a refund policy. The debtor still had all the debts and was $1450 worse off.  

Click here to deal with a company that has a refund policy
Click here for more case studies

Proven Track Record

You should only deal with a company that has a proven track record. Ask them how long they have been doing the job for and what their success rate is.