Join our mailing list to stay informed!
Posted by Revive Financial on Oct 15, 2012 5:37:00 PM

A Debt Agreement Proposal is a saving grace for people who have fallen behind in their finances. Job loss, illness, death or even mismanaged budgets can see Aussies fall behind on their loan repayments. If you fall far enough behind, you might require the use of a Debt Agreement Proposal to get back on top of things.

Debt Agreement Proposals Explained

A Debt Agreement Proposal is a suggestion from you to your creditors which offers an alternative payment arrangement than the one currently in place. In the process of entering into a debt agreement, you must submit a proposal to the creditors offering an alternative to the current payment arrangement. The Debt Agreement Proposal should reflect an achievable and sustainable arrangement based on your expected income from all sources, household expenses and circumstances.

What to Expect from a Debt Agreement Proposal

Depending on your circumstances, you could propose a number of payment options. Some of the more common Debt Agreement Proposal arrangements include:

  • Regular periodic payments out of your income to creditors. These can be equal to or less than the full amount owed on all the debts.
  • A lump sum payment of less than the full amount of all debts
  • A moratorium on payment of debts
  • Payment from the proceeds of sale of property or other major assets

Entering into a Debt Agreement Proposal

A Debt Agreement Proposal must comply with a wide range of requirements set out by the Australian Financial Security Authority (AFSA). It is AFSA's job to ensure a Debt Agreement Proposal meets eligibility. It does this by clarifying aspects of proposals to ensure creditors are well informed. It also conducts the voting process with creditors. Once the Debt Agreement Proposal has been put together it is sent to the creditors to vote on. For your Debt Agreement Proposal to be approved you need to gain the vote of creditors who hold more than 50% of the value of your debt. Once you have their approval, all creditors are bound to the agreement, even those who voted against it. Once you have successfully entered a Debt Agreement Proposal creditors cannot take or continue recovery action against you, so no more harassing phone calls.

Where to Go for Help

Revive Financial is a specialists debt management company with a focus on helping Aussies out of Debt. It offers a range of debt relief solutions including Debt Agreement Proposals. For more information on Debt Agreements, its benefits and consequences or for general assistance with your debt, call Revive Financial today on 1800 534 534 and Talk to An Aussie Who Cares.

For more information on Debt Agreements and how they can help you find financial relief, check out our Debt Agreement page. 


Topics: Debt Agreements, Personal Debt, Debt Management Solutions

How Can We Assist You Today?

Personal Debt Icon Personal
Business Debt Icon Business
Please select an assistance option to continue.

Types Of Unsecured Debts

Credit Card Icon Credit/Store Cards
Personal Loan Icon Personal Loan
Pay Day Loan Icon Pay Day Loan
Tax Debt Icon Tax Debt
Disconnected Utilities Icon Utility Bill
Other Debts Icon Other
Please select at least one type of unsecured debt.

Your Business Structure

Sole Trader Icon Sole Trader
Partnership Icon Partnership
Company Icon Pty Ltd Company
Tax Debt Icon Trust
Please select at business structure to continue.

Unsecured Debt Amount


Business Debt Amount


Take Back Control Today!

First Name

Last Name


Phone Number

Phone number must be 10-digits long and begin with a 0. (e.g. 04 1234 5678)

Post Code

Post code must be 4-digits long (e.g. 4567)

Some of your details appear incorrect.
Please update the highlighted fields and re-submit.


You’ve taken the first step to steer your business back to viability

Let’s keep the momentum going, take the second step by linking your Xero account now.


You've taken the first step to becoming debt free

Let's keep the momentum going, take the second step now and complete the assessment form.

By submitting this form you acknowledge that you have read and accept our Privacy Policy