A Part IX Debt Agreement is a contractual arrangement made between two parties (the borrower and creditor) which ‘ideally’ establishes a mutually agreed on time for deposit. The advantage of debt agreements are that they represent a low cost alternative to bankruptcy.

Typically the borrower approaches a financial consultancy who offers this service and a debt agreement is negotiated. It is important to recognize that a debt agreement is a compromise between two or more parties, one being the borrower/debtor and the other(s) being the lender(s). Examples of debt agreements may include:-

* Payment of less than the full amount of all or any of the debtor's debts

* A moratorium on payment of debts

* A transfer of property from the debtor to one or more creditors in full or part payment of their debt

* Periodic payments of amounts out of the debtor's income to creditors either collectively or individually

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