Restructuring Proposal
Knowing when Expenses need to be Revised Establish the expenses that the consumer has, taking into account their unique circumstances, living arrangements, dependants and income group. Include all required expenses and apply careful consideration to non-required and luxurious items. The Debt Counsellor should assist the consumer in re-working the income & expenditure and reach mutual agreement on where expenses can be reduced / controlled.
NDRC Practice NoteLast reviewed 2026-04
The restructuring proposal is the document that goes to court. It sets out, per creditor, the new monthly instalment, the revised term, and the projected payout. The total across all creditors must match the affordability figure exactly.
Rounding errors and off-by-one term miscalculations are surprisingly common. We rebuild the proposal in two independent calculators before submission and reconcile any difference. A proposal that does not balance to the cent will be sent back.
Credit providers run the proposal through their own restructuring calculators. Disputes usually concern the term length on secured debt (mortgages, vehicle finance) where a longer term reduces the monthly but extends interest exposure.
Authority for rearrangement: NCA s 86(7)(c)(ii) read with s 87. The court order under s 87 is what makes the proposal binding.
Drawn from NDRC's active case work. For your situation, see our debt counselling overview.
Cite this clause
National Credit Regulator. (2015). Annexure B — Debt Review Assessment Guidelines, clause 8: Restructuring Proposal. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 44.