What happens if I do NOT comply with my obligations under a Debt Agreement?

Submitting a Debt Agreement Proposal is a serious step and there are negative consequences if the debtor fails to comply with the terms of an established Debt Agreement. 

The Debt Agreement Administrator will notify the AFSA and creditors in respect of any default in payment by the debtor that results in a cumulative three-month arrears or six-month arrears in respect of the Debt Agreement. An agreement must be completed within 6 months of the specified date.  Therefore, it is possible that if the debtor does not maintain regular payments as undertaken, then creditors may elect to terminate it and pursue the debtor for immediate repayment of the outstanding debts, which may result in bankruptcy.


Postal Address

PO Box 392
Moorebank NSW 1875
Tel: (03) 9351 0434

Email: [email protected]

Make an Enquiry

© Copyright 2012 Personal Insolvency Professionals Association | Powered by Orange InfoMedia

website security