Stay connected with Navado:

Buying or selling a residential property?

With our Residential Conveyancing Offer, we offer fixed fees of $1650 (plus disbursements) for your purchase or sale. Conditions apply. | See more …

Have you been charged with a criminal or traffic offence?

We offer fixed fees from $1100 for one of our Lawyers to appear on one day at any Local Court in Sydney. Conditions apply. | See more …

Buying a property and need a home loan?

Our experienced Brokers can help you compare interest rates and home loans, at no cost to you in the comfort of your own home. | See more …

Do you need to lodge your personal Tax Return?

Our Public Accountants & Tax Agents charge a flat fee of $143 for your Individual salary or income tax returns. Conditions apply. | See more …

Secure your financial future. Plan today, enjoy tomorrow.

Create wealth. Minimise tax. Structured tailored solutions. Arrange a free consultation with a Financial Advisor today. Conditions apply. | See more …

You don't have a will? Don’t leave it until it’s too late...

We can help. Our lawyers will obtain an understanding of your situation and complete your simple will for $330. Conditions apply. | See more …

Conveyancing & Will Offer

Fixed fees of $1870 (plus disbursements) for the sale or purchase of residential property & a simple will. Conditions apply. | See more …

Are you thinking of setting up a Company?

For a fixed fee of $550 plus disbursements, our Public Accountants can help you complete the puzzle of Company Registration. | See more …

Going to Court? Strategy is key.

You may feel like you are all alone and that the odds are against you. Speak to one of our experienced Litigation Solicitors. | See more …

Get the right legal advice for your business.

When it comes to your business, precision is key. Speak to one of our experienced Business & Commercial Law Solicitors. | See more …

Do you have a civil or commercial dispute?

Our Litigation Lawyers focus on delivering cost effective, strategic solutions to your legal dispute. | See more …

What are your legal rights? Do you know where you stand?

Don’t feel discouraged. We can help. For an agreed fixed fee, we can provide you with a preliminary legal opinion. | See more …

Are you considering setting up a Trust?

For a fixed fee of $880 plus Disbursements, our Public Accountants can help you establish a Discretionary, Family, Hybrid or Unit Trusts. | See more …

Are you thinking of setting up an SMSF?

For a fixed fee of $550 plus disbursements, our Public Accountants can help you register your SMSF. Conditions apply. | See more …

Are you thinking of setting up a Business and Company?

For a fixed fee of $825 plus disbursements, our Public Accountants can help you register your Business & Company. Conditions apply. | See more …

Have you considered seeking Estate Planning legal advice?

We offer a special package of $990.00 including GST, for a simple Will, Power of Attorney and Enduring Guardianship. Conditons Apply. | See more …

Become a Navado Private client

Navado Legal & Financial Group can provide a total synergistic legal and financial solution tailored to your circumstances. | See more …


Part IX debt agreements and Part X personal insolvency agreements are advantageous alternatives to bankruptcy. These types of agreements are often preferred over bankruptcy since creditors are usually guaranteed a higher return. Our Sydney Bankruptcy Lawyers are exceptionally experienced in all aspects of bankruptcy law, including advising and assisting both debtors and creditors deal with Part IX and Part X agreements.

Part IX debt agreement

The aptly named Part IX debt agreement (arising from Part IX of the Bankruptcy Act 1966), is a legally binding agreement between a debtor and their creditors. A Part IX debt agreement is only used when a debtor is unable to pay their debts as and when they fall due; that is, they are insolvent. A Part IX debt agreement is often used as an alternative to declaring bankruptcy.

A Part IX debt agreement is much more flexible than bankruptcy. It allows the debtor to negotiate with its creditors a scheme in which to settle its debts. There are a variety of different options available, including:-

  • Agreeing to make affordable periodic payments or instalments;
  • Agreeing to pay less than the full amount of the debt owed; and
  • A temporary deferral on paying debt.

Once the debtor has made a proposal to the creditors, the creditors must consider and vote on whether to accept it or not. 

Part IX debt agreements benefit both debtors and creditors. For debtors, a Part IX debt agreement is generally less damaging to a person’s credit record than bankruptcy. It can also mean there no assets are lost. For creditors, the benefit is that there is a generally better return than that of bankruptcy, due largely to lower costs involved with the initiation and administration of a Part IX debt.

Part IX debt agreements are only available to persons of low levels of debt, few assets and low incomes. A person will not be entitled to make a Part IX debt agreement if either their unsecured debt or divisible property is over a set limit, their taxable income exceeds a threshold or if at any time in the previous ten years that person has been declared bankrupt or entered into a previous debt agreement.

The overall process of obtaining a Part IX debt agreement can be complicated. You should consider retaining the services of an independent advisor or Bankruptcy Lawyer.

Part X debt agreement

Like a Part IX debt agreement, a Part X personal insolvency agreement is a flexible alternative to bankruptcy. In a Part X personal insolvency agreement, the debtor will come to an agreement with their creditors to settle debts without becoming bankrupt. Unlike a Part IX debt agreement however, a Part X personal insolvency agreement is not limited to persons of low income, low assets and low levels of debt.

A Part X personal insolvency agreement is commenced by the debtor completing a statutory authority appointing a trustee to take control of their property. The trustee (who must be a registered trustee or a qualified lawyer) will put a proposal to the creditors. The proposal is a formal and legally binding agreement between the debtor and its creditors that sets out how the debtor will satisfy their debts. This may involve a reduction in the overall debt payable and a periodic payment scheme.

Once creditors receive the proposal, they must vote on the proposal. If the proposal is passed, a deed must be executed by the debtor within 21 days, binding the debtor and all creditors.

The advantage for creditors is usually related to the fact that the likely return under a Part X proposal will exceed the likely return under a bankruptcy scenario, and the costs of a Court process that would be incurred in a bankruptcy scenario can be avoided. The process of obtaining a Part X personal insolvency agreement involves the creditors being able to assess, with the assistance of the trustee, whether it is more viable for them to proceed with the Part X agreement or proceed with bankruptcy.

A debtor will only be released from a Part IX or IX agreement once they have satisfied the terms of that agreement and neither agreement can release a debtor from certain special debts that are not released by bankruptcy.

For more information, contact our Sydney Bankruptcy Lawyers today. We have experience assisting both debtors and creditors in bankruptcy and insolvency matters. If you wish to make an appointment, please contact us by telephone on (02) 9233 4048 or email to Please peruse our "Locations" tab for a complete list of our office locations.

Bookmark and Share

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.

Sorry, but no Articles are available at this time.

Sorry, but no FAQs are available at this time.

If you require assistance with a matter, you should make an appointment to see one of our Lawyers in one of the following locations:

  • Sydney
  • Parramatta
  • Chatswood
  • Hurstville

Our Locations

  • Bankruptcy Lawyer Sydney
  • Insolvency Lawyer Sydney
  • Bankruptcy Lawyer Parramatta
  • Insolvency Lawyer Parramatta
  • Bankruptcy Lawyer North Sydney
  • Insolvency Lawyer North Sydney
  • Bankruptcy Lawyer Hurstville
  • Insolvency Lawyer Hurstville
  • Bankruptcy Lawyer Liverpool
  • Insolvency Lawyer Liverpool
  • Bankruptcy Lawyer Gordon
  • Insolvency Lawyer Gordon
  • Bankruptcy Lawyer Baulkham Hills
  • Insolvency Lawyer Baulkham Hills
  • Bankruptcy Lawyer Campbelltown
  • Insolvency Lawyer Campbelltown
  • Bankruptcy Lawyer Bondi Junction
  • Insolvency Lawyer Bondi Junction
  • Bankruptcy Lawyer Chatswood
  • Insolvency Lawyer Chatswood
  • Bankruptcy Lawyer Miranda
  • Insolvency Lawyer Miranda
  • Bankruptcy Lawyer Bella Vista
  • Insolvency Lawyer Bella Vista
  • Bankruptcy Lawyer Erina
  • Insolvency Lawyer Erina
Quick enquiry
  • Request an appointment

Where to find us?

Sydney (Head Office)
Level 10, 309 Pitt Street.

Level 9, 33 Argyle Street.

Level 1, 10 Help Street.

Ground Floor, 5 Railway Parade.

In NSW, Interstate or International?
Initial Consultations are available by Skype or Tele-Conference.

Stay connected
Ask an expert