What Are My Personal Debt Options?

At Insolvency Services Australia, we don’t believe in a one-size-fits-all approach as everybody’s situation is different. That’s why we offer a range of personal debt options for those who find themselves struggling financially.

So if you are wondering, “What are my personal debt options?” here is the answer:

Personal Debt Agreement

A Debt Agreement is a legally binding agreement between a debtor and his or her creditors. This agreement, if agreed to, stipulates the amount of money the debtor has proposed to pay over a period of time to pay off their debts.

In most cases, a Debt Agreement runs for 3 to 5 years.

Entering into a Debt Agreement may be a great option for you because it freezes all interest on your debts at the time. This means that you will not incur any additional fees so you can focus on paying off what you already owe as opposed to stressing out about new debts.

However, in order to be eligible for a Debt Agreement, you need to meet certain criteria such as having unsecured debts less than <$110,893 and having equity in assets less than <$110,983 and earning less than <$83,169 (after tax) or <$116,117 (before tax for Australian citizens).

Personal Insolvency Agreement

Another alternative is a Personal Insolvency Agreement. It shares many similarities to a Debt Agreement in which it is a formal agreement entered into by the debtor and their creditors, and it usually lasts for 3 to 5 years.

However, there are some differences. For example, to be eligible for a Personal Insolvency Agreement, your unsecured debts cannot be less than $110,893 or have equity in assets less than <$110,983.


Bankruptcy is usually considered the last resort for those in personal debt as it can bear serious consequences. It lasts for 3 years and restricts your ability to travel overseas without permission from your Trustee. In addition, you may lose any assets with available equity to help repay your debts and a default will be placed on your credit file for seven years.

It is important to properly explore and understand your personal debt options before making a decision. Our friendly and professional insolvency specialists can help you do that. We offer a FREE initial consultation and expert advice. Please contact us on 1800 003 883 now.


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