Part IX Debt Agreement
A formal, binding arrangement between an individual and their creditors offering a compromise as an alternative to bankruptcy.
A bankruptcy alternative
A Part IX debt agreement is a formal arrangement between an individual debtor and their creditors that provides a way to compromise debts without entering full bankruptcy. The debtor typically proposes to pay an amount, often over time, in settlement of what is owed. If accepted by the required creditors, it becomes binding and governs how those debts are dealt with.
What it means for creditors
Where a debt agreement is in place, affected creditors generally receive what the agreement provides instead of pursuing the debtor separately. The arrangement is administered under a regulated framework. This is general information only and not legal or financial advice. The related individual procedure is described at bankruptcy.
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