Eligibility criteria

To be eligible for a Debt Agreement, firstly you need to be  insolvent.  This means that you cannot afford to pay your debts as a when they fall due. If you are not insolvent then you cannot apply for a Debt Agreement.

The other criteria you need to meet are:

• Unsecured debts are < $88 379.20; and
• Equity in assets are < $88 379.20; and
• After tax annual income is < $66 284.4 or approximately < $88,379 (before tax for Australian residents)

If you exceed these statutory thresholds you cannot apply for a Debt Agreement, however, you may wish to apply for a Personal Insolvency Agreement.