Using A Part 9 Debt Agreement to
Save Your Home

A Debt Agreement Can Save Your House 

Being swamped with debt is stressful and this stress can be magnified for people who are buying their home. The thought of the home being lost because of the swamping debts can be quite threatening, causing stress levels to escalate further.

For people in this situation, a Debt Agreement can be a good solution, but it has its pros and cons.

Saving Your Home

A Part 9 Debt Agreement is a legally binding way of settling your debts, provided by the Bankruptcy Act. It avoids the cost of debt consolidation and what’s more a Debt Agreement can also protect your home.

A Debt Agreement can be a very low-cost tool to help you when you have bad credit causing you to face high costs and interest charges to do debt consolidation.

A Part 9 Debt Agreement marshals all your creditors into one agreement. Your creditors agree to you settling your debts by making a monthly payment to your Debt Agreement for 5 years. Your Debt Agreement Administrator receives your payments and then distributes the money to your creditors on a pro-rata basis. After 5 years your Debt Agreement is finalised, and you no longer owe the debts caught by the Debt Agreement. That\’s right, your debts are cleared – and your house is safe.

Benefits of a Part 9 Debt Agreement While Owning A House

A Part 9 Debt Agreements protect your home by taking the stress out of your finances, returning you to having no threatening creditors, and your debts being repaid in an orderly manner. A Debt Agreement does this by giving you the following benefits:


A Part 9 Debt Agreement helps you to protect your home by converting the financial pressure and demands you are experiencing into a single, locked-in, affordable monthly payment over 5 years. You are no longer unable to make required payments and left robbing Peter to pay Paul.

It is important for your monthly Debt Agreement payment to be affordable – you must be able to live and pay your day-to-day bills. The Debt Agreement monthly payment can be adjusted to make it affordable by creditors agreeing to reduce their debt and creditors not charging interest while their debt is subject to a Debt Agreement.

A Part 9 Debt Agreement protects your home as Debt Agreement creditors cannot take debt collection action against you and are restricted to receiving payments from your Debt Agreement. You no longer need to worry about having to find money to keep your creditors at bay, going to court, or paying a judgement debt.

The third way a Debt Agreement helps you to protect your home is that once the Debt Agreement has been completed, you are permanently released from your Debt Agreement debts.

For further information on Debt Agreements, a good article to read is: ‘What Is a Debt Agreement‘.

If you would like to have a chat about Debt Agreements and what can be done to protect your home, give us a call on 1300 794 492 or email:

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