Life After Part 9 Debt Agreements

A guide to refinancing part 9 debt agreements

Most people in insolvency find relief in their debt agreement. Plus, feel relief in their part 9 debt agreement being an alternative to bankruptcy. Generally, managing the unsecured creditors before the acceptance of the Part 9 debt agreement proposal was the most challenging period of time. However, now you are seeking financial options to fix your bad credit & better your situation. Therefore, you are in a debt agreement and looking for information to: 

  1. Firstly, consolidate the amount owing on a debt agreement:
  2. Secondly, refinance your home & combine your debt agreement.
  3. Thirdly, you are interested in buying a house or property for investment.
  4. Possibly, obtain finance to purchase a new car.
  5. Finally, combine your debt agreement with part 9 debt agreement loans.

Debt Consolidation - consolidate my Part 9 into my home loan. 

Debt consolidation finance using property security gives the lender with the lowest risk. Specifically, lower risk provides options for more competitive interest rates.  Nevertheless, lenders’ assess risk in different ways. Additionally, problems such as credit history and insolvency are risk factors a lender will seek to minimise. 

Small issues in the assessment can result in higher interest rates, lower loan amounts and higher insurance fees.  For example, see below how to analyse a DA consolidation payment:

Example of Debt Agreement Consolidation

Description Amounts Payment
Property Value $660,000  
Home Loan (amount owing) $370,000 $1500 per month
Debt Agreement  $55,000 $1300 per month
Total  $425,000 $2800 per month
Lender Fees Including Insurance & Other Fees $8000  
Total  New Loan $433,000  
LVR 65%  
New Interest Rate  4.26  
New Loan Repayment $433,000 $2125 per month
Savings   $675 per month

Benefits of consolidating an insolvency agreement

In most cases, other consolidation factors and benefits can outweigh the costs. However, combining an insolvency agreement into your home loan can offer the following benefits:

  1. Firstly, reducing your total payments; as per the above example.
  2. Secondly, ending your insolvency ahead of time allows cheaper property lending options earlier.
  3. Finally, updates your credit file as discharged.

Lending Policies for refinancing a debt agreement

People often believe specialist loans don't have credit criteria because they can help with credit issues. Even though, debt consolidation is available to refinance your part ix debt agreement standard lending policies do apply.  

  1.   Regardless, you need sufficient income available to meet the loan repayments.
  2.   Also, you will need sufficient equity to consolidate into your home loan.
  3.   Overall, there is also other lending criteria such as living expenses; and age of the agreement.
  4. Certainly, applying for a Part 9 is an act of bankruptcy under the Bankruptcy Act. Plus, the only recourse for a creditor to collect on defaulted debt agreement is a full bankruptcy.
  5. Therefore, a lender will review your payments to your debt agreement administrator for good conduct.

Property Equity & refinancing vs debt agreements

Obtaining a part nine debt agreement requires meeting equity thresh-holds as per the bankruptcy act 1966. However, obtaining finance requires 10-20% equity. Therefore, refinancing shortly after securing an insolvency agreement may not be possible because of low property equity for lending.

In other words, you may need to allow 1-2 years or longer for improvements in your property value. Hence, each property location improves in value at different rates. Consequently, within a short period, your equity may increase enough to refinance. 

Start by discussing your situation with Loan Saver Network. As our process is different to other lenders; as we source funds through multiple channels. In addition, we understand debt problems and the finance options that may improve your financial situation. In addition, we provide advice on how to get yourself credit ready. Including how to improve the bad credit listed on your credit file. 

Loan Saver Network offer our advice free of charge. To begin with, call us today on 1300 796 850 for a confidential discussion and finance strategy plan.

What lender policies are specific to a Part 9?

Lenders assess loan applications against specific lender policies. Specifically, they all fit within the five core principles of lending called the 5c’s of credit.

5 C's of Credit

Whenever you borrow money; a lender will use the 5 C's of credit to assess your risk against their policies.

  1. First C is "character" and is sometimes referred to as a credit file. Consequently, this 1st C category is the policies that concern specifically part 9 debt agreements and your credit history.
  2. Additionally, the second C is "capital". As such, it refers to the amount of equity or funds a borrower puts toward an investment.
  3. Then the 3rd C is "capacity" and measures the applicant's ability to repay a loan.
  4. 4th C is "collateral" and relates to security and how fast it will sell. 
  5. In conclusion, 5th C being conditions.  As suchthis relates to the overall conditions of the loan. Hence, the interest rate, principal, and the lenders desire to finance the borrower. Consequently, this also includes economic matters such as the recent royal commission and how it affected lending.

The first C being character relates to lending policies in regard to insolvency. 

How long does a debt agreement stay on your credit file?

The number of years from the date you accepted the proposal for an insolvency agreement is a lender risk factor. As a result, credit report agencies and the National Personal Insolvency Index (NPII) record your debt agreement details, including the start date. Consequently, lenders will access your credit file for this information to obtain the relevant dates. In brief, the more recent the debt agreement, the higher the pricing and fees. In general, recently established debt agreements have low property equity. As a result of meeting the equity threshold requirement when entering into a Debt Agreement. 

  •  One-day-old insolvency agreements can gain finance approvals. However, price grading and equity constraints are usually difficult limitations.
  • However, insolvency agreements one year to two years old have better refinance options. Consequently, the properties can have sufficient growth in equity. Therefore, we have refinanced many insolvency agreements in this age bracket and provided benefits.
  • Finally, insolvency agreement's older than two years can obtain finance with the lowest interest rates.

Each lender has a different point of view regarding debt agreements. As such, lenders can grade part 9 as a bankruptcy. However, other lenders may see a part 9 debt agreement consolidation similar to a credit card consolidation. Consequently, different points of view can provide improvements or increases in interest rates and fees.

If you have a current part 9 debt agreement; you will not have any credit score.


FAQ's about Part 9 Debt Agreements

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Part 9 Debt Agreements FAQs

  • Firstly, part 9 debt agreements are suitable if you are on a low income; and fit within the DA thresholds.
  • Secondly, full bankruptcy is most suitable when there is no income, or limited assets that a trustee can sell.
  • Thirdly, home loan debt consolidation can be suitable with sufficient equity and income. As a result, it can be used to pay out both good and bad debt, including personal or business tax debt.
  • Also, unsecured personal loan debt consolidation usually has minimal benefits. The lender policies are very strict because the loans are unsecured. Plus, can result in small loan amounts & high-interest rates.
  • Finally, informal payment agreements are usually established to reduce payments. However, payment terms can be quite long, and you may find you have the same amount of debt after many years.

Various parties can access information about your insolvency, which is kept on a number of databases.

  • Firstly, credit reporting agencies record all forms of bankruptcy on your credit file.
  • However, the National Personal Insolvency Index (NPII) also holds all forms of bankruptcy. Recorded information on the NPII is held longer than on your credit file.
  • Finally, lenders will look at your credit file when you apply for credit. As such, Part 9 may prevent you from getting further finance. Although, not all lenders check for long term insolvencies.

Applying for a Part 9 Debt Agreement is an act of bankruptcy. Another key point is if your creditors reject your agreement, you can apply to the court to make you bankrupt.

Image of Part 9 Debt Agreements Section of Credit file

Part 9 Debt Agreement showing no credit score

A debt agreement is not a debt consolidation loan. Furthermore, Part 9 refers to the Part 9 clause under the bankruptcy act of 1966. As such, it is registered on the national personal insolvency index (n.p.i.i) as a form of bankruptcy. Therefore, if you are under an insolvency agreement, it will appear on your credit file under bankruptcy.

Keep in mind; a part ix debt agreement is not debt consolidation or full bankruptcy. However, simply applying for a part ix debt agreement is an act of bankruptcy. As such, if your debt agreement is rejected, you may apply to become bankrupt.

Debt consolidation mortgage or loan is where you obtain finance to combine your debts into a single loan payment.

Debt Agreement Administrators are professional debt negotiators who will negotiate with creditors. Consequently, they will also work with you to obtain a budget and manage your debt agreement. However, they also negotiate with your creditors to accept your proposal.

Simply applying for a Debt Agreement is an act of bankruptcy. Hence, it is important to obtain advice to ensure a debt agreement is the most suitable solution. Further-more, debt agreement administrators are professional debt negotiators. Similarly, they can advise you of the potential for your debt agreement proposal to be accepted by your creditors.

Important to realise,  is that a debt agreement administrator charge fees, and in some instances, they can be quite high. By and large, most fees are added into the Debt Agreement (DA).. However, obtain fee quotes if you are considering a part 9 debt agreement



A range of debts cannot be included under a Part IX debt agreement. Specifically, confirm with your creditor if insolvency can be used to settle your debts. However, some of these debts are:

  • Firstly, any secured loans cannot be included under a debt agreement. As such, these may include car loans, home loans, and any caveat debt.
  • As well as fines, penalties and court-ordered payments cannot be included.
  • Certainly, child support cannot be included and you will still owe it.
  • Also, study loans such as HECS or HELP Loans and a debt is owed to the government.
  • Additionally, victims of crime debt & money owed as a result of a crime.
  • Likewise, debts incurred by fraud are not required to be included.
  • Finally, debts incurred after Australian financial security authority accept your proposal.

Related pages: Money Smart Website: What debts does a debt agreement cover?

Wondering how to buy a home with a debt agreementPart 9 Debt Agreements can provide relief from financial difficulties and debt and an alternative to bankruptcy. Certainly, life can be full of uncertainty and surprise events that can cause problems with debt.

One option to fix debt problems could be an insolvency. For instance, two forms of insolvency include part iv debt agreements and part x insolvency agreements. However, Part 9 and Part 10 differ in the level of bankruptcy. In other words, the policies and threshold will highlight which insolvency is most suitable.

Part 10 insolvency agreements are intended for when you are unable to make payments toward the debt. Furthermore, you don’t meet the financial thresholds for a debt agreement. In particular, debt agreements are where you can meet the income and other limits, and can make payments.

Part 10 usually sells assets to pay creditors, offering limited refinance options. In brief, we will be providing information on debt agreements and the finance options available for you.

Most personal unsecured debts can be included under a debt agreement. Therefore, debts such as:

  • Personal loans, credit cards and store cards.
  • Additionally, payday loans and loans <$2000 can be included. As such, these loans typically are loans repaid within one year or less.
  • Plus, overdrawn bank accounts and unsecured overdrafts.
  • Likewise, you can include unpaid rent as a creditor to be put under a debt agreement.
  • Significantly, medical, accounting and legal fees as debt issues can result from these matters.
  • Finally, Phone, internet, gas and electricity bills can also be included in a debt agreement.

Debt Agreement Pro’s

  • Certainly, debt agreements are an alternative to full bankruptcy.
  • Above all, your unsecured debts’ interest is frozen. Only the principal plus establishment fees are paid.
  • In addition, your creditors cannot pursue you legally for recovery of the money owed.
  • Above all, you can apply for multiple household debt agreements to reduce the overall household debt.
  • Finally, if you have property equity within the equity threshold, you can retain your property.

Debt Agreement Cons

  • Firstly, they will affect your ability to get credit.
  • Above all, a debt agreement does not include secured assets. Therefore, you still have the obligation to make those payments. As such, if you cannot make the payments, the lender can repossess your assets.
  • However, if you run a business, you need to inform your clients that you are under a part 9 debt agreement.
  • Keep in mind; some employment industries restrict employment for people under debt agreements.
  • Finally, if you are unable to keep the payments on a Part IX debt agreement, you may be made bankrupt. Since simply applying for a debt agreement is an act of bankruptcy. As such, your creditors can apply to make you bankrupt.

See information about how to consolidate your part 9 debt agreement.

Otherwise, contact Loan Saver Network for more information at 1300 796 850.

A debt agreement can avoid the full effects of bankruptcy. Nevertheless, entering into a  Debt Agreements has serious consequences as with any insolvency.

Part 9 Debt Agreement benefits

  1. For the most part, an insolvency agreement can assist you in gaining control of your debts.
  2. Certainly, harassing phone calls will stop; as the debt agreement administrator manages your debts.
  3. Furthermore, you will repay what you can afford based on a budget you submit for assessment.
  4. Subsequently, will have a negative effect on your credit file and credit score.
  5. Regardless, you may not be able to obtain future credit for up to 7 years

Is a Part IX debt agreement suitable for you?

  1. Firstly, are you having issues making your loan repayments on time?
  2. Secondly, you haven’t been in bankruptcy in the previous ten years?
  3. Thirdly, you have unsecured debts below the set amount of $116,662 (as of 29th Jan 2020).
  4. Finally, your after-tax income is less than the threshold amount of $87,496.50 (as of 29th Jan 2020).

If you answered yes to these questions, then a debt agreement may be suitable for you. However, Loan Saver recommend speaking to a financial counsellor to advise the most suitable solution.

Part IX refers to part 9 under the bankruptcy act of 1966. Consequently, a debt agreement is a binding agreement between yourself and your creditors. Hence, the agreement is to repay the unsecured debts & avoid the need for full bankruptcy. Furthermore, debt agreements are intended for:

  • Firstly, low-income earners or fit within the income threshold.
  • Secondly, they are also struggling to pay their debts and fit within the debt threshold.
  • Finally, individuals committed to paying back their debt; therefore don’t want a full bankruptcy.

Considering debt agreements should not be taken lightly, as they represent a serious step to resolve your debt. In particular, you should obtain independent advice regarding debt agreements. With this in mind, you can make contact with a financial counsellor or legal service to obtain advice. What’s more, see below links to the Money Smart Government website for information.

Financial Counselling

The government has strict policies and thresholds with regard to debt agreements. Hence, there are thresholds for:

  • Firstly, your individual income.
  • Then, the debt amount included under the agreement.
  • Thirdly, the assessed net property equity.
  • Certainly, there are many other policies related to your debt agreement proposals.

Loan Saver Network highly recommends speaking to a financial counsellor if you are considering a part IX debt agreement.

Applying for a Debt agreement is considered an act of bankruptcy. Therefore, if your debt agreement is terminated, you can then apply to be made bankrupt. Certainly, a creditor can apply to a  court to make you bankrupt  As a result, bankruptcy may result in:

  • Certainly, the sale of your assets to settle your debts.
  • Also, terminating the debt agreement will re-instate any waived interest payments. Hence, you would need to repay your debts in full, including interest.
  • Finally, lenders would apply high-risk pricing to any finance, resulting in higher interest rates.

For advice about your Part 9 Debt Agreement call Loan Saver Network today on 1300 796 850.

Most people in insolvency find relief in their debt agreement. Generally, the most challenging time was managing the debt before Part 9. However, now that time has passed, you are seeking finance options to better your situation. therefore, you are in a debt agreement and looking for information about your finance options. As a result, see below the finance available while in a debt agreement.

  1. First of all, Yes, you can refinance your home & combine your debt agreement. However, you must pay and discharge the Part 9 debt agreement at settlement.
  2. Secondly, Yes, you can buy a house while under a debt agreement. However, you would need to pay out your debt agreement at settlement. As a result, the combination of paying the debt agreement plus lender and government fees may prevent you from buying.
  3. Furthermore, Yes, you can obtain finance to buy a car and retain your debt agreement. However, your debt agreement would need to be up to date with good payment history.
  4. Finally, you cannot pay out a debt agreement with an unsecured personal loan.



Book Your Free Part 9 Debt Agreement Consolidation Assessment Today

Our debt consolidation assessment will assist in identifying the best refinance options for you. As such, consolidating your part 9 debt agreement into your home loan may give you a much lower repayment.

Call Loan Saver Network today for your free debt assessment on 1300 796 850.