.png){kind=small}
When a Debt Agreement is rejected
A Debt Agreement (Part IX) is a formal proposal put to creditors for a vote. In some cases, creditors may decide that the proposed repayment terms do not sufficiently reflect the circumstances or expected return, resulting in the proposal being rejected.
A rejection does not mean you’ve failed — and it does not automatically remove all future options. In many cases, proposals are declined due to structure, affordability assumptions, or insufficient supporting information, rather than the idea of a Debt Agreement itself.
What happens next
When a proposal is rejected, creditors usually provide feedback explaining why it was not accepted. This feedback can be critical in determining what steps may follow.
Depending on your circumstances, options may include:
- Revising and resubmitting a new proposal
- Adjusting repayment terms or duration
- Exploring alternative debt solutions
- Reassessing affordability and income stability
Changes in income, expenses, or overall financial position can significantly affect how creditors view a new proposal.
How we support you
At Clear My Debts, we help you step back, reassess, and understand what your rejection actually means — before rushing into another decision.
We help by:
- Reviewing the reasons your proposal was declined
- Explaining creditor feedback in plain language
- Assessing whether a revised proposal may be appropriate
- Helping you understand alternative pathways if resubmission isn’t suitable
- Guiding you through next steps with clarity and confidence
Our focus is on helping you avoid repeat rejections and unnecessary stress.
Why reassessment matters
For the right person, taking the time to reassess after rejection can lead to:
- A clearer understanding of creditor expectations
- Better-structured repayment proposals
- Improved affordability alignment
- Consideration of more suitable alternatives
There is no single “right” next step — and that’s exactly why guidance matters.
Important things to consider
- Creditors are not required to accept a revised proposal
- Multiple rejections can limit future options
- Changes to circumstances are often required before resubmission
- A Debt Agreement remains a formal insolvency process
We make sure you understand both the risks and implications before proceeding.