Finance After Part IX Debt Agreement
A Part IX debt agreement is a legal alternative to bankruptcy that helps you settle debts you can't afford to pay in full. Once completed, you can start rebuilding - and we can help you find lenders who understand your situation.
Your past doesn't define your future. Completed your agreement? We can help.
Completing a Part IX debt agreement is an achievement. You've honoured your commitment, paid what you could, and followed through on your obligations. Now you're ready to move forward - but finding a lender who understands can be challenging.
The good news? A Part IX is generally viewed more favourably than bankruptcy by specialist lenders. You made arrangements to repay your debts rather than having them wiped entirely. That shows character, and the right lenders recognise it.
At Your Lending Friend, we work with specialist lenders who consider applications from people who have completed Part IX agreements. We understand the process, know what lenders need to see, and can help present your application in the best light.
What is a Part IX Debt Agreement?
Understanding the basics helps you know what lenders see
Alternative to Bankruptcy
A Part IX debt agreement is a legally binding agreement between you and your creditors to pay back a portion of your debts over time.
Administered by AFSA
The Australian Financial Security Authority (AFSA) oversees the process, and a debt agreement administrator manages your agreement.
Fixed Payment Period
Typically 3-5 years of regular payments, after which your remaining included debts are cleared.
Less Severe Than Bankruptcy
While still an act of insolvency, a debt agreement is generally viewed more favourably by lenders than bankruptcy.
When Can You Apply for Credit?
Your options depend on the status of your agreement
During Active Agreement
DifficultYou must disclose your agreement when applying for credit. Most lenders will decline while your agreement is active.
Just Completed
Can ApplySome specialist lenders will consider applications immediately after completion, though options are limited.
12+ Months After Completion
Can ApplyMore lenders become available, and rates improve. This is a good time to consider car finance.
2+ Years After Completion
Can ApplyApproaching mainstream options. If the listing has dropped off your credit file, even more options open up.
How It Appears on Your Credit File
Understanding what lenders see helps you prepare for the application process.
| Item | Duration |
|---|---|
| Part IX Agreement Listing | 5 years from start date OR until completed (whichever is longer) |
| National Personal Insolvency Index (NPII) | Permanent record (but less commonly checked) |
| Credit Score Impact | Score begins recovering once agreement is completed |
Important: Keep Your Completion Certificate
When your Part IX agreement is completed, your administrator will provide a completion certificate. This document is essential for loan applications.
Lost your certificate? Contact your debt agreement administrator or AFSA for a copy.
What Specialist Lenders Look For
Meeting these criteria improves your approval chances
You Did the Right Thing
Entering a debt agreement wasn't easy. You faced your debts, made a plan, and followed through. That takes integrity. Specialist lenders see that - they're willing to give you a chance because you've already proven you honour your commitments.
Your past doesn't define your future.
Part IX Debt Agreement Loans FAQs
Common questions about getting finance after a Part IX agreement
A Part IX (Part 9) debt agreement is a formal, legally binding agreement between you and your creditors under the Bankruptcy Act 1966. It allows you to pay back a portion of your debts over time (usually 3-5 years) without going bankrupt. It's administered by AFSA and managed by a registered debt agreement administrator.
A Part IX debt agreement stays on your credit file for 5 yea...
A Part IX debt agreement stays on your credit file for 5 years from the start date OR until it's completed - whichever is longer. For example, if you complete a 3-year agreement, it will remain on your file for 5 years. If you have a 5-year agreement, it drops off when completed. It also appears on the permanent National Personal Insolvency Index (NPII).
It's very difficult. While in an active debt agreement, you ...
It's very difficult. While in an active debt agreement, you must disclose this when applying for credit. Most lenders will decline applications from people with active agreements. If you urgently need finance during your agreement, talk to us - but waiting until completion is usually better.
Generally better. While both are acts of insolvency, a Part ...
Generally better. While both are acts of insolvency, a Part IX is typically viewed more favourably by lenders. You've proactively arranged to pay back what you could, rather than having debts wiped entirely. Some lenders who won't touch ex-bankrupts will consider completed Part IX applicants.
Expect rates 5-12% higher than standard loans initially. The...
Expect rates 5-12% higher than standard loans initially. The exact rate depends on time since completion, your current income, deposit amount, and overall circumstances. Making consistent repayments for 12-24 months can help you refinance to a better rate as your credit rebuilds.
Yes. Lenders will want to see your completion certificate fr...
Yes. Lenders will want to see your completion certificate from your debt agreement administrator. This confirms your agreement has been successfully fulfilled. Make sure you have this document before applying - it's essential for the application process.
Still have questions? Contact our friendly team