Debt agreements - an alternative to bankruptcy under Australian law - have never been popular, at least not with lenders. And early experience with a revised system, in which the consumer's ability to repay is supposed to be the key, suggests they won't become any more viable soon.One issue is that a determined attitude by some banks (and who resist taking much of a discount on money owed) means that it's often impractical to establish an arrangement based on the consumer's ability to repay.Fox Symes, the largest of the debt agreement administrators, says some 30 to 40 per cent of debt agreement applications involve Westpac. This ratio is about double the bank's apparent market share in consumer lending."Lots of clients have debt consolidation loans with Westpac," said Deborah Southen, director at Fox Symes. "Lots of people go to Westpac for advice and come away with big loans."Administrators are reporting a notably harsher approach from two banks in particular: Westpac and St George. Administrators say CBA and NAB are, in general, more supportive.Since July, the debt agreement industry (which helps borrowers negotiate agreements under parts nine and ten of the bankruptcy law) has been pared back to 21 under a certification system managed by the Insolvency and Trustee Service of Australia.Another 180 registered trustees can also file an agreement. Each agreement must be based on the debtor's ability to repay and the administrator must certify the agreement is affordable and therefore sustainable.Administrators say they typically negotiate agreements that return between forty and eighty cents per dollar over three to five years."People are coming through now with up to $78,000 in consumer debts," says Deborah Southen. "You can't pay that back in less than five years and probably not at much more than 40 to 50 cents in the dollar."Administrators say demand increasingly comes from clients who have consolidated all their debts through a residential loan and in which the client often has no equity left. And even then the clients typically have additional consumer loans.Young adults with debts of $15,000 are also common among the client base.Southen says each agreement has to ensure that the rent or mortgage is paid, plus provide for utilities, food, essentials, children and the occasional visit to the dentist."Some of the big lenders have totally unrealistic expectations," said Southen.Under the new voting rules, big creditors have increased power and cannot be easily outvoted."If St George is your majority creditor, then it's shut the gate and file now for bankruptcy, because they are not going to agree to anything," said one debt agreement administrator.A second debt agreement administrator said that they were being sandwiched by tough creditors. This person singled out Westpac and St George."They say they have a new rule, nothing under 55 cents for example, and they won't be flexible about time or rate of return."Two other administrators have described a tougher approach coming out Westpac's Adelaide based debt recovery team.Debt agreement administrators are reporting that St George is telling them no less than 65