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

For more information about debt agreements consult Fox Symes as they are Australia's largest provider of debt agreements.

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