Debt Agreements

Debt agreements, also referred to as a Part IX/9, are an alternative to bankruptcy. They are a formal legally binding offer to your creditors that allows you to pay back an amount less than the full amount of your debt, over a reasonable time – typically 3 to 5 years.

Personal Insolvency Agreements

A personal insolvency agreement (PIA) is a legally binding agreement between you and your creditors.  It can be a flexible way to come to an arrangement to settle debts without becoming bankrupt. A Trustee is appointed to take control of your property and make an offer to your creditors. The offer may be to pay part or all of your debts by instalments or a lump sum.

Informal Agreements

Informal Agreements are not legally binding on creditors but they can be a good option if you have only a small number of debts  and none of your creditors have started legal action to recover their debts.


Managing debt can be stressful, especially if it feels beyond your control. You may feel confused and helpless with questions about which creditors to pay first and how to stop distressing debt collector calls.

BT Acumen can help you consider your options. The earlier you seek help, the more informed you will be, and the greater number of choices you may have.

Two alternatives for dealing with unmanageable debt include making an informal or formal Agreement with your creditors. Determining which option is best depends on your unique situation.


Informal agreements are not legally binding which means creditors can change their mind about what they have agreed to. They can be a good option if you have only a small number of debts and none of your creditors have started legal action to recover those debts. Your creditors may wish to separately negotiate interest rates and payment schedules. The more creditors you have, the more challenging this is.


Formal agreements are legally binding on you and your creditors. They can take the guesswork out of paying debts on time and may make budgeting easier. Formal Agreements include:

  • Debt Agreements
  • Personal Insolvency Agreements

To learn more about Formal Agreements, click on the links below.



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