If the debt agreement is accepted by you and your creditors, then:
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the creditors cannot enforce remedies to recover debts,
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the bailiff or sheriff must not take action against you,
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any garnishee must cease, and
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you are released from most debts when the debt agreement concludes.
In exchange, a new set of obligations on you will be negotiated between you and your creditors. The fact that a debt agreement has been entered into will be placed on the Federal Government's National Personal Insolvency Index. This is a permanent and public record. Your name will also be recorded on a commericial credit reference record for 7 years.
Lodging a debt agreement proposal, acceptances of the debt agreement by creditors, and breaching or terminating an agreement are all 'acts of bankruptcy' under law. A creditor can use any one of these to apply to make you bankrupt.
