Act of Bankruptcy

Signing a Debt Agreement proposal is an act of bankruptcy. That means, you are admitting to creditors that you cannot pay your debts. This allows creditors to apply to court to make you bankrupt.

National Personal Insolvency Index (NPII)

Your name will appear on the NPII register. The NPII is a public register of proceedings under the Bankruptcy Act in Australia, including Debt Agreements. The amount of time your name is listed on the NPII varies depending on how your Debt Agreement ends.

Completed Debt Agreements: 5 years from the date the debt agreement was made or the date the obligations are completed – whichever is later

Terminated Debt Agreements: 5 years from the date the debt agreement starts, or 2 years from the date of termination – whichever is later

Void Debt Agreements: 5 years from the date the debt agreement starts, or 2 years from the date of termination – whichever is later

Withdrawn, rejected, cancelled, or lapsed Debt Agreement proposals: 1 year from the day that:

  • you withdraw the proposal or
  • the credit provider refused the proposal or
  • the acceptance of your proposal was cancelled or
  • the proposal lapsed.

In limited circumstances, if your safety is at risk, you can request to hide your address from the NPII.

Credit reporting

The details of your Debt Agreement will be listed on a credit reporting agency’s records for up to 5 years, or longer in some cases.