AVOID BANKRUPTCY

Freeze your Interest and Reduce your Debt with a Debt Agreement

Are you looking for an alternative to bankruptcy? Bankruptcy may seem like your only available option, but reforms to the Bankruptcy Act in 2007 meant that those experiencing out of control debt have an alternative.

Unlike Bankruptcy, with a Debt Agreement, you can keep a hold of your assets and maintain complete control over your finances, whilst paying down your unsecured debts.

Former Attorney-General Nicola Roxon said: “Debt Agreements give many Australians in financial distress an alternative option to get back on their feet sooner than bankruptcy.”

How does a Debt Agreement work?
A Debt Agreement is a negotiated Payment Plan that consolidates all of your current unsecured debt repayments into just one regular payment over the agreement timeframe.

The payments are negotiated taking into consideration, not only what you owe but also what you can afford based on your budget. There is no further interest charges, no service fees, no default fees as your unsecured debts are frozen at the time of the agreement. No more gut wrenching phone calls and all legal action stopped.

How does a Debt Agreement help protect my assets from Bankruptcy?
When a Debt Agreement is negotiated with your unsecured creditors, all your expenses are taken into account including payments required for your secured assets. In other words by negotiating a reduction in payments for your unsecured debts, money is freed up to pay your secured debts.

The Result:

Bankruptcy avoided.
Thousands of dollars saved.
You are in control.
What if I don’t have any secured debt?
A Debt Agreement assists you to meet your agreed debt payment commitments to the best of your ability, meaning you are not walking away from the commitments you have made but renegotiating the terms.

It provides you with a single payment for all creditors. Once payment terms are agreed, no further claims can be made against your income (future windfalls, increases in income) and you maintain complete control over your finances. No claims can be made on your wages for these debts.

So let us help you see the light at the end of the tunnel. Turn your life around with a Debt Agreement. Call the friendly staff at Debt Cutter today on 1300 887 211 or arrange a Free Phone Consultation.

Here is how Debt Cutter helps you avoid declaring bankruptcy.


We discuss your situation and explore options with you.


Together we work through your budget to ensure you are able to stick to the plan


If a Debt Agreement suits your situation, we discuss a viable payment plan.


We negotiate with your creditors based on your budget, not just what the creditors are demanding.

And what does this mean for you?

  • Your interest is frozen on the debts in the agreement.
  • Reduction in debt owed.
  • Unsecured debt repayments are consolidated into one regular payment.
  • Your income is freed up to pay off your secured debts e.g. home, car
  • Your debt stress is lifted and you get your life back!

It is important to be aware that Debt Agreements have qualifying conditions and consequences that need to be carefully considered. It is recommended you speak to a Registered Debt Agreement Administrator, like Debt Cutter about your situation to ensure a Debt Agreement is the right course of action for you.

The key difference between bankruptcy and a debt agreement are:

  • You renegotiate your situation with your creditors by offering to meet your financial obligations to the best of your ability i.e. what you can afford, not what is owed.
  • Because you are not walking away, you get to maintain control of your finances, no trustees looking over your shoulder.
  • Your secured debts are not in the agreement. You get to keep your assets. As long as you keep paying your outstanding secure loan repayments they cannot be sold on your behalf.
  • Debt Agreements have less restrictions, than bankruptcy for people who are self employed.

Many of our clients have been able to avoid bankruptcy utilising a Debt Agreement.

Take action today to avoid bankruptcy! Call our friendly staff at Debt Cutter on 1300 887 211 or Arrange a Free Phone Consultation.