The Difference Between
Part IX & Part X Debt Agreements.
What's Right for You?

An Informal debt Agreement is a legally binding contract between you and your creditors outlining a new repayment arrangement to suit your circumstances. An informal Debt Agreement is not legislated by the government, so it is not marked on your credit rating.

An Informal Debt Agreement is usually only suitable for people who have recently experienced a dramatic change in their circumstances which has left them unable to pay their debts. They could have lost their job, suffered an injury or fallen out of a relationship.

An informal Debt Agreement can cover one debt or several debts, no matter how big or small.

A Part IX Debt Agreement is a legally binding contract between you and your creditors outlining a new repayment arrangement to suit your circumstances. The government legislated agreement will be marked on your credit rating and you will be listed on the National Personal Insolvency Index.

To be eligible for a Part IX Debt Agreement, you must have a certain amount of unsecured debt. The indexed amounts are set by ITSA and are updated twice a year. You can't have had a Debt Agreement or have declared bankruptcy in the last 10 years.

Most Australians struggling with credit card debts, personal loans, outstanding bills and other unsecured debts are eligible for a Part IX Debt Agreement.

A Part X Debt Agreement is also known as a personal insolvency agreement. Like a Part IX it is a new repayment schedule which must be negotiated with your creditors, but a Part X really lends itself to people in a more complicated debt situation.

There is no eligibility criteria for a Part X, which makes it suitable for people with high debt amounts and people who are higher income earners. Because the process is longer and more involved, it allows debtors to propose settling their debt in a reduced lump sum and other methods.