There are eligibility criteria you must meet to be able to enter into a debt agreement.
If you meet the criteria a debt agreement administrator will help you prepare a debt agreement proposal, based on what you can afford to repay.
You can view more details and the eligibility criteria on the Australian Financial Security Authority’s (AFSA) website.
The proposal will be sent to the each of your creditors and they can vote to accept or reject your proposal. If the majority of creditors accept your proposal then the debt agreement will start and all creditors will have to accept the terms of the agreement.
All creditors will receive the same proportion of the amount you owe. For example, if you propose to repay 90% of all your outstanding debts over a five-year period, then all creditors will get 90% of what you owe them.