Rebuild Credit After a Consumer Proposal in Australia (2026 Guide)

Quick Answer: "Consumer proposal" is the Canadian term — the Australian equivalent is a Part IX Debt Agreement under the Bankruptcy Act 1966. A Part IX Debt Agreement stays on your credit file for 5 years from the end of the agreement (under the Privacy Act 1988) and remains permanently on the National Personal Insolvency Index (NPII). Credit rebuilding after a debt agreement follows a clear path: understand what's on your file, remove any additional unlawfully listed entries, build positive Comprehensive Credit Reporting history, and reintroduce credit products strategically. Australian Credit Solutions (ASIC ACL 532003) has helped thousands of Australians recover from debt agreements — 98% success rate on accepted cases, No Win No Fee, lawyer-led by Principal Solicitor Elisa Rothschild BA/LLB. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ reviews.

If you're searching "consumer proposal Australia" — you've likely come across that term while researching debt solutions. In Canada, a consumer proposal is a formal insolvency arrangement. The Australian equivalent, with very similar structure and credit file impact, is a Part IX Debt Agreement (sometimes called a Part 9, debt agreement, or DA). Everything in this guide applies to you.

What Is a Part IX Debt Agreement in Australia?

A Part IX Debt Agreement is a legally binding arrangement under the Bankruptcy Act 1966 between you and your creditors, administered by a registered Debt Agreement Administrator (DAA). You agree to pay a reduced amount — often cents in the dollar — over a set period (typically 3–5 years). In exchange, creditors accept this as full settlement and cannot pursue you for the balance.

It is not bankruptcy — but it is a form of personal insolvency. And it leaves a mark.

How a Debt Agreement Affects Your Credit File

A Part IX Debt Agreement creates multiple negative entries on your credit file:

This means your credit file during and after a debt agreement typically shows the DA listing plus multiple underlying defaults from the debts included. Each of those defaults was listed separately by each creditor before the agreement.

The Credit Rebuilding Roadmap — Step by Step

Step 1: Know Exactly What's on Your File

Pull free reports from all three bureaus the moment your agreement ends:

• equifax.com.au
• experian.com.au
• creditreport.com.au

List every entry: the DA listing, every individual default, every enquiry. Note the date each was listed. This tells you when each entry will naturally expire — and which ones might be removable sooner.

Step 2: Check Whether Any Pre-DA Defaults Are Removable

This is the step most people miss. The underlying defaults from creditors included in your debt agreement were listed separately by each creditor — before the agreement was even signed. Many of those defaults were listed in breach of the Privacy Act 1988:

• Section 21D notices sent to old addresses
• Incorrect amounts listed
• Listing before the 60-day overdue period elapsed
• Duplicate entries

If any of those defaults were unlawfully listed, they can be removed independently of the debt agreement listing itself. Removing 3–4 underlying defaults while the DA listing remains still produces meaningful score improvement — because you're eliminating the compounding negative signals.

Australian Credit Solutions reviews debt agreement cases regularly. We assess every default on the file, not just the DA listing.

Step 3: Build Positive Repayment History Immediately

Under Comprehensive Credit Reporting (CCR), introduced in Australia in 2018, every monthly repayment on every credit account is now recorded as positive or negative history. The most recent 24 months of payment behaviour are actively weighted in your score.

The moment your agreement ends — start building positive history:

• Pay every bill on time, every month
• If you have any remaining credit accounts, ensure zero missed payments
• Consider a low-limit credit product specifically for building RHI (see Step 5)

Step 4: Don't Apply for Multiple Credit Products Simultaneously

Post-agreement, you're in a fragile credit position. Multiple applications create multiple hard enquiries — each stays 5 years and each signals financial stress to lenders. Be selective. Apply only where you've researched approval likelihood and have good confidence.

Step 5: Reintroduce Credit Products Strategically

Year 1 post-agreement: Focus exclusively on bill payment history. No new credit applications unless essential.

Year 1–2: Consider a secured or low-limit credit card from a non-bank lender. Use it for small purchases. Pay it in full every month. Each on-time payment is recorded as positive RHI.

Year 2–3: Your CCR history is building. Score should be improving measurably. Consider a small personal loan if needed — credit union or mutual bank lenders tend to have more contextual assessment processes than major banks.

Year 3–5: As the underlying defaults age and positive history accumulates, mainstream lending becomes progressively more accessible. Home loan applications become realistic for many clients in this window, especially if underlying defaults were removed.

How Long Until Your Credit Score Recovers?

With professional removal of underlying unlawfully listed defaults, this timeline compresses — people can reach the Average or Good band within 12–24 months post-agreement rather than waiting the full 5 years.

Case Study: Ryan, Brisbane — From Debt Agreement to Home Loan in 3 Years

Ryan, 41, a warehouse supervisor from Wynnum, completed a Part IX Debt Agreement in early 2022 — 4 creditors, $38,000 total debt settled for $14,000 over 3 years. His Equifax score at completion: 428.

His file showed the DA listing plus 4 individual creditor defaults. Australian Credit Solutions reviewed all 4 defaults. Two had Section 21D notice issues — sent to the address of the property he'd rented before moving in with family during the financial difficulty period. Neither had been served to his actual residential address on file with those creditors.

Both defaults removed within 44 days. Score moved from 428 to 591. Ryan applied for a home loan in early 2025 — approved through a specialist lender at 7.9%. The DA listing remained on his file, but the removal of two underlying defaults was enough to access home finance 3 years post-agreement rather than waiting for the DA listing to expire.

Ryan paid nothing until we succeeded.

Get a free assessment from Australian Credit Solutions →

Why Australian Credit Solutions Understands Debt Agreement Cases

Australian Credit Solutions is a division of Fogarty Oliver and Rothschild law firm. Principal Solicitor Elisa Rothschild BA/LLB has managed hundreds of debt agreement credit recovery cases. We understand the layered nature of DA credit files — the DA listing itself, the underlying defaults, the enquiries, and how each interacts with the scoring models.

We've helped over 5,000 Australians since 2014. 98% success rate on accepted cases. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ verified reviews. No Win No Fee — you pay the success component only when we remove an entry.

All disputes are conducted under the Privacy Act 1988 and the Credit Reporting Code.

Frequently Asked Questions

What is the Australian equivalent of a consumer proposal? In Australia, the closest equivalent to a Canadian consumer proposal is a Part IX Debt Agreement under the Bankruptcy Act 1966. Both are formal insolvency arrangements where you agree to pay creditors a reduced amount over time. The credit file impact and rebuilding path are very similar.

How long does a debt agreement stay on your credit file in Australia? A Part IX Debt Agreement stays on your Australian credit file for 5 years from the date the agreement ends (is fully paid or completed). It also appears permanently on the National Personal Insolvency Index (NPII). Individual defaults from creditors included in the agreement have their own 5-year retention periods from their original listing dates.

Can I rebuild my credit score while a debt agreement is still active? Yes — you can begin building positive Comprehensive Credit Reporting history through on-time bill payments during the agreement period. Score improvement during an active DA is limited, but establishing a consistent repayment pattern means you're building momentum for post-agreement recovery.

Can any credit repair be done after a debt agreement? Yes — specifically targeting the underlying defaults from creditors that were individually listed before and during the agreement. If those defaults were listed in breach of the Privacy Act 1988, they can be removed even while the DA listing itself remains. This produces meaningful score improvement without needing to wait for the DA listing to expire.

Can I get a home loan after a debt agreement in Australia? Yes — typically 2–5 years post-completion, depending on your rebuilt credit history. Specialist lenders (Pepper Money, Liberty, Resimac) may consider applications 2–3 years post-completion. Mainstream bank home loans generally require the DA listing to have expired (5 years from end of agreement) and a clean rebuilt history.

How is a debt agreement different from bankruptcy in Australia? Both are forms of personal insolvency, but bankruptcy involves a trustee taking control of your assets and generally lasts 3 years (standard) before discharge. A Part IX Debt Agreement preserves more control — you make agreed payments to creditors without a trustee taking assets. Bankruptcy stays on the credit file for up to 7 years from commencement; a debt agreement stays 5 years from end.

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Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. This article provides general information only and does not constitute legal or financial advice.

Related reading: Credit repair after debt agreement → | Part IX debt agreement warning → | How to recover after bankruptcy →