Debt Solutions and Consolidation

Are you in financial difficulties and unable to pay your debts?

Are you considering bankruptcy?

You may have other options!

  • Debt Consolidation

    Refinance unsecured debt into your housing loan With this option your name will not appear on public record

  • Informal Arrangements

    Talk to your creditors about renegotiating your debts.


    your bank or lender
    a financial counselling service or
    ASFA or
    a trustee

  • Debt Agreements Part IX

    Creditors agree to accept a proposal based on what you can afford

    Some financial limits apply
    Your name will stay on the public record forever

  • Personal Insolvency Agreements Part X

    Finalise debts with an agreement using a trustee

    No financial limits apply
    Your name will stay on the public record forever

    (Options 3 and 4 are acts of bankruptcy and your creditors may make you bankrupt)

  • Becoming Bankrupt

    If you cannot reach a comprise or settlement with your creditors, you can become bankrupt.

    The consequences of bankruptcy are serious.

What is a Debt Agreement?

A debt Agreement is a simple means for you to enter into a legally binding agreement with your creditors, to pay off your debts in an affordable manner, over an agreed time frame. You can enter into a Debt Agreement provided you have unsecured debts, net assets and a net income less that the indexed threshold amounts and have not been Bankrupt or a party to a Debt Agreement within the past ten years.

What does a Debt Agreement do?

A Debt Agreement freezes provable unsecured debts. This allows you to pay back the debt, over an extended period of time, at a rate you can afford.

What is a provable unsecured debt?

Examples of unsecured debts are credit cards, utility accounts (telephone / electricity accounts), tax and personal loans where no asset has been offered as security for the loan.

How does a Debt Agreement work?

Creditors freeze their unsecured debts and vote on whether to accept your proposal.

Do all Creditors have to agree to the proposal?

No. Only a majority or more than 50% in value of those who vote, have to agree.

What if a Creditor does not vote or votes against my proposal?

Provided the above criteria are met, the decision is legally binding on all Creditors.

What do I do if unsecured creditors keep calling me?

Tell them you are proposing a Debt Agreement. You have authorised Croft and Gray to prepare and lodge the proposal and to discuss your financial position. Refer to your consultant at Croft and Gray.

How frequently and by what method will I have to make payments?

We will set up a payment system that suits you.

How will my Credit Rating be affected?

A Debt Agreement is registered on the National Personal Insolvency Index, and it is also recorded on your credit report by Veda Advantage.

Is a Debt Agreement the same as Bankruptcy?

No. It is an alternative and does not have the same restrictions as Bankruptcy. More Information is available at Australian Financial Security Authority.