Debt Resolution Agreement for Australia

Debt Resolution Agreement Template for Australia

A legally binding agreement under Australian law that establishes a formal arrangement between a debtor and creditor(s) for the resolution of outstanding debt. The agreement outlines specific terms for debt repayment, including payment schedules, interest arrangements, and conditions for both parties. It complies with Australian consumer credit protection laws and provides a structured alternative to bankruptcy, incorporating provisions for default, hardship, and early repayment. The document includes comprehensive details about the debt, payment terms, and obligations of all parties involved, while ensuring compliance with relevant federal legislation including the National Consumer Credit Protection Act 2009 and the Bankruptcy Act 1966.

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What is a Debt Resolution Agreement?

The Debt Resolution Agreement serves as a crucial legal instrument in Australian debt management, providing a structured framework for resolving outstanding debts between parties. It is typically used when a debtor seeks to establish formal repayment arrangements with creditors without entering bankruptcy proceedings. This document is essential in situations where parties wish to document their mutual understanding regarding debt resolution, payment terms, and ongoing obligations. The agreement must comply with Australian federal legislation, including the National Consumer Credit Protection Act 2009 and the Bankruptcy Act 1966, and may require registration with relevant authorities depending on the debt amount and circumstances. It includes detailed information about the debt, payment schedule, default provisions, and rights of all parties, making it a comprehensive tool for debt management and resolution.

What sections should be included in a Debt Resolution Agreement?

1. Parties: Identifies and defines all parties to the agreement, including the debtor, creditor, and any debt administrators or trustees

2. Background: Outlines the context of the debt, including its origin and current status

3. Definitions: Defines key terms used throughout the agreement

4. Acknowledgment of Debt: States the agreed amount of debt and any interest or charges

5. Resolution Terms: Details the agreed payment plan, including amount, frequency, and duration

6. Payment Method: Specifies how payments will be made and processed

7. Default Provisions: Outlines what constitutes default and its consequences

8. Rights and Obligations: Lists the specific rights and obligations of each party

9. Term and Termination: Specifies the duration of the agreement and conditions for termination

10. Governing Law: Confirms the agreement is governed by Australian law and specifies jurisdiction

11. Execution: Formal signing section including witness requirements

What sections are optional to include in a Debt Resolution Agreement?

1. Debt Administrator Appointment: Required when a registered debt agreement administrator is involved in managing the agreement

2. Security Provisions: Include when specific assets are provided as security for the debt

3. Third Party Guarantor: Required when a guarantor is providing additional security for the debt

4. Hardship Provisions: Optional provisions for dealing with future financial hardship

5. Early Payment Provisions: Terms for early repayment and any associated benefits or penalties

6. Dispute Resolution: Detailed dispute resolution procedures beyond standard legal remedies

7. Privacy and Confidentiality: Additional privacy terms beyond statutory requirements

What schedules should be included in a Debt Resolution Agreement?

1. Schedule 1 - Debt Details: Detailed breakdown of the debt components, including principal, interest, and fees

2. Schedule 2 - Payment Schedule: Detailed payment schedule showing dates, amounts, and payment allocation

3. Schedule 3 - Supporting Documents: List of documents evidencing the original debt

4. Appendix A - Statement of Financial Position: Current financial position of the debtor

5. Appendix B - Direct Debit Authorization: If applicable, direct debit payment authorization forms

6. Appendix C - Consent Forms: Required statutory consent forms and declarations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Relevant Industries

Financial Services

Banking

Credit Management

Debt Collection

Insolvency Services

Legal Services

Consumer Credit

Personal Finance

Professional Services

Relevant Teams

Legal

Finance

Credit Management

Collections

Risk & Compliance

Customer Service

Operations

Account Management

Debt Administration

Documentation

Relevant Roles

Credit Manager

Financial Controller

Debt Recovery Officer

Collections Manager

Insolvency Practitioner

Financial Advisor

Legal Counsel

Compliance Officer

Risk Manager

Account Manager

Debt Administrator

Banking Officer

Credit Analyst

Financial Services Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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