Part IX Debt Agreements* FAQ
- What can I propose under a part IX?
- Who can I appoint as my administrator?
- How does a Part IX end?
- What else do I need to know?
- What are my rights?
What can I propose under a part IX?
Under a Debt Agreement you may propose to:
- make a one-off, lump sum payment to creditors
- sell assets of your choosing to pay your creditors
- have a freeze on your debts for a set time to let you 'get back on your feet'
- pay something less than the full amount to finalise your debts.
Who can I appoint as my administrator?
The administrator of your proposal must meet eligibility requirements under the Bankruptcy Act, and can be a person, such as:
- a registered trustee
- a debt agreement administrator
- an adviser (e.g. solicitor or accountant)
- any person known to you.
How does a Part IX end?
A part IX ends when the creditors are satisfied, under the arrangement made with the administrator.
What else do I need to know?
Your debt agreement proposal will be recorded on the public record (the NPII) permanently, along with its acceptance or rejection by your creditors. Your name will also be recorded on the commercial credit reference database for seven years.
The National Personal Insolvency Index (NPII), established by the Bankruptcy Regulations, is a permanent public register of all bankruptcies and personal insolvencies in Australia. The NPII records:
- Your personal information including your name (including previous names and aliases), address (including business address and previous addresses), date of birth, occupation.
These details provide a public record of an individual's Debt Agreement Proposal and assist in clearly identifying the debtor.
What are my rights?
Once you have appointed an administrator to your affairs you are able to refer any matters regarding your financial arrangements to the administrator. Any issues that creditors may have regarding debts covered by the arrangement should be taken up with the administrator. This enables you to get on with your life, without the fear of harassment from your creditors.
For further information, you can call Insolvency Help on 1800 222 868 for confidential advice from Insolvency experts.
*(Reproduced from the Australian Financial Security Authority website)