A Part IX debt agreement is a legally binding agreement between a debtor and their creditors.
Our role as administrator starts with determining whether the debtor is insolvent and the extent of the debtorâ€™s unmanageable debt. In assisting the debtor to prepare a debt agreement proposal we work with the debtor to establish their circumstances, their household expenses and income then decide what the debtor can realistically afford to pay creditors.
A proposal is then sent to the Australian Financial Security Authority whom ensure compliance with the wide range of requirements such as eligibility; clarifying aspects of proposals to ensure creditors are well informed to make a decision on their vote; and conducting the voting process with creditors. AFSA maintains the National Personal Insolvency Index (NPII) to ensure it reflects the status of the agreement.
In order to have your debt agreement proposal accepted a majority of creditors in value must vote in favour.