A Debt Agreement is a legal alternative to bankruptcy that involves an arrangement between a debtor and their unsecured creditors. It allows the debtor to pay back an agreed amount of their outstanding debts over a period of time.

A Debt Agreement is set up and administered by a Registered Debt Agreement Administrator (RDAA). When you contact a RDAA about a Debt Agreement, they will investigate your financial situation and household budget to determine what you can afford and how much this will give each of your creditors. When the repayment plan (which usually lasts for 3-5 years) is created, it is put toward the creditors and voted upon by them. Once accepted, the RDAA is responsible for collecting the repayments and distributing them to the creditors, and handling all paperwork and creditor enquiries.